19:38 Jun 13, 2009 

Yes, I agree with this definition of translation exposure and I am sure you will find many similar definitions on the Net (Investopedia to mention but one).

15:51 Jun 13, 2009 

ref: http://www.mia.org.my/handbook/guide/IMAP/imap_3.htm

15:50 Jun 13, 2009 

"Translation exposure is measured at the time of translating foreign financial statements for reporting purposes and indicates or exposes the possibility that the foreign currency denominated financial statement elements can change and give rise to further translation gains or losses, depending on the movement that takes place in the currencies concerned after the reporting date. Such translation gains and losses may well reverse in future accounting periods but do not, in themselves, represent realized cash flows unless, and until, the assets and liabilities are settled or liquidated in whole or in part. This type of exposure does not, therefore, require management action unless there are particular covenants, e.g., regarding gearing profiles in a loan agreement, that may be breached by the translated domestic currency position, or if management believes that translation gains or losses will materially affect the value of the business. International Accounting Standards set out best practice.

Transaction Exposure

This is also referred to as conversion exposure or cash flow exposure. It concerns the actual cash flows involved in setting transactions denominated in a foreign

15:50 Jun 13, 2009 

"Translation exposure is measured at the time of translating foreign financial statements for reporting purposes and indicates or exposes the possibility that the foreign currency denominated financial statement elements can change and give rise to further translation gains or losses, depending on the movement that takes place in the currencies concerned after the reporting date. Such translation gains and losses may well reverse in future accounting periods but do not, in themselves, represent realized cash flows unless, and until, the assets and liabilities are settled or liquidated in whole or in part. This type of exposure does not, therefore, require management action unless there are particular covenants, e.g., regarding gearing profiles in a loan agreement, that may be breached by the translated domestic currency position, or if management believes that translation gains or losses will materially affect the value of the business. International Accounting Standards set out best practice.

Transaction Exposure

This is also referred to as conversion exposure or cash flow exposure. It concerns the actual cash flows involved in setting transactions denominated .../

15:47 Jun 13, 2009 

Would you agree with this definition:
" EXPOSURE

Definition

Foreign currency exposure is the extent to which the future cash flows of an enterprise, arising from domestic and foreign currency denominated transactions involving assets and liabilities, and generating revenues and expenses are susceptible to variations in foreign currency exchange rates. It involves the identification of existing and/or potential currency relationships which arise from the activities of an enterprise, including hedging and other risk management activities.

Types of Exposure

Translation Exposure

Translation exposure is also referred to as accounting exposure or balance sheet exposure. The restatement of foreign currency financial statements in terms of a reporting currency is termed translation. The exposure arises from the periodic need to report consolidated worldwide operations of a group in one reporting currency and to give some indication of the financial position of that group at those times in that currency.

/......

15:23 Jun 13, 2009 

"Foreign currency exposure" is used synonymously to "currency exposure" and "foreign exchange exposure" and is the broad term that includes all the different components of currency exposure.

"Omregningseksponering" is the exact exposure that arise when the company owns assets that have to be translated ("omregnet") into the company's presentation currency for accounting purposes.

The exact term "translation currency" might not be used in the IAS, (just as "omregningseskponering" is not used in NRS). However, it is still there as a component of foreign currency exposure:

IAS 21 distinguishes between two types of currency exposure. For
convenience, in this paper these are called ‘translation exposure’ and
‘transaction exposure’, though these terms are not used in IAS 21 itself.
http://www.iasb.org/NR/rdonlyres/745DA007-FCF3-4097-9FB9-D61...

14:58 Jun 13, 2009 

I think you have found the correct translation for this context. The other suggestions seem fine, too.

14:49 Jun 13, 2009 

I've since found that IAS uses the term "foreign currency exposure". Example: "Whether risk arises from (a) the foreign currency exposure to the functional currencies of the foreign operation and the parent entity, or from (b) the foreign currency exposure to the functional currency of the foreign operation and the presentation currency of the parent entity's consolidated financial statements. " I thing this is the most precise solution here. Any objections?

14:39 Jun 13, 2009 

As I understand this reference, "(omregningseksponering)" just specifies what kind of foreign exchange exposure we are talking about here.

It does not mean that "valutaeksponering" and "omregningseksponering" are synonyms.

14:29 Jun 13, 2009 

"Currency exposure" consists of several components, and "translation exposure" ("omregningseskponering") is just one of them. Other components include economic exposure and transaction exposure. See the excellent definitions in Investopedia:

http://www.investopedia.com/terms/e/economicexposure.asp
http://www.investopedia.com/terms/t/transactionexposure.asp

12:38 Jun 13, 2009 

Your own suggestion gets a lot of hits.
Konsernet har begrenset strukturell valutaeksponering (omregningseksponering).http://www.tandberg.com/collateral/ir/TANDBERG_2006_annual_r...