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Posición monetaria patrimonial

English translation: Gain or loss on monetary position of equity

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Spanish term or phrase:Posición monetaria patrimonial
English translation:Gain or loss on monetary position of equity
Entered by: Douglas Divers
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15:20 Mar 14, 2007
Spanish to English translations [PRO]
Bus/Financial - Accounting / Auditor\'s Report
Spanish term or phrase: Posición monetaria patrimonial
This phrase appears in an auditor's report from Mexico:

"La (insuficiencia) exceso en la actualización del capital contable, que se presenta en el estado de variaciones en el capital contable, está representada básicamente por el resultado por posición monetaria patrimonial y por el resultado acumulado por tenencia de activos no monetarios, que representa la diferencia entre el valor de reposición de los activos fijos e inventarios...."

How could "posición monetaria patrimonial" best be translated into US English?

Many thanks,

Douglas
Douglas Divers
United States
Local time: 10:04
Gain or loss on monetary position of equity
Explanation:
This is scenario that takes place in an inflationary economy. Although Mexico has managed to control its inflation, Mexican GAAP still requires companies to reflect the impact of inflation on the financial information, in accordance with the "Boletín B-10 y sus cinco Adecuaciones - Los Efectos de la Inflación en la Información Financiera". If a company keeps its accounting records that present historical amounts, the auditor is required to issue a qualified opinion because those amounts were not restated for purposes of inflation.
Transcribed below is an extract taken from "Documento Integrado del Boletín B-10 con Casos Prácticos" published in Spanish by the Instituto Mexicano de Contadores Públicos, A.C. (IMCP).
Text:

Concepto. El efecto por posición monetaria es producto de decisiones eminentemente financieras. Nace del hecho de que existen activos monetarios y pasivos monetarios que durante una época inflacionaria ven disminuido su poder adquisitivo, al mismo tiempo que siguen manteniendo so valor nominal. En el caso de los activos monetarios, esto provoca una pérdida, ya que cuando la empresa los convierta en dinero o haga uso del mismo, dispondrá de una cantidad igual al valor nominal de éstos, pero con un poder adquisitivo menor. Por lo que respecta a las deudas, el fenómeno es exactamente el mismo, pero con un efecto favorable para la empresa, ya que liquidará un pasivo con cantidades de dinero de menor poder adquisitivo.

Consequently in Mexico, companies use the National Consumer Price Index as a benchmark for restating their assets and liabilities for purposes of inflation.
Comment:
Resultado is "gain or loss".
Hope this helps.
18 years translating for the Mexican financial community (accounting firms, banks, brokerage firms, IMCP, etc.).

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Note added at 5 hrs (2007-03-14 21:09:37 GMT)
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The following link to a PwC website provides good insight on inflation accounting.

IFRS: Reporting Hyperinflation
www.pwc.com/Extweb/service.nsf/docid/40F6ACDA6FFB2567802571... - 111k - Cached - More from this site ... to calculate the gain or loss on the entity's daily net monetary position. ... monetary gain or loss can be calculated using average monetary positions during ...
Selected response from:

Richard Cadena
Mexico
Local time: 09:04
Grading comment
Many thanks Richard!

Douglas
4 KudoZ points were awarded for this answer

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Summary of answers provided
5Gain or loss on monetary position of equity
Richard Cadena
4equity currency position/currency position on equityValeria Carcagno
3Net Monetary Position / Equity Monetary Position / Net Worth Position
Margarita Ezquerra (Smart Translators, S.L.)


Discussion entries: 1





  

Answers


38 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
Net Monetary Position / Equity Monetary Position / Net Worth Position


Explanation:
Suerte

Margarita Ezquerra (Smart Translators, S.L.)
Spain
Local time: 16:04
Works in field
Native speaker of: Native in SpanishSpanish
PRO pts in category: 329
Login to enter a peer comment (or grade)

34 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
equity currency position/currency position on equity


Explanation:
'

--------------------------------------------------
Note added at 45 mins (2007-03-14 16:05:58 GMT)
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http://www.chicagofed.org/publications/workingpapers/papers/...
Formato de archivo: PDF/Adobe Acrobat - Versión en HTMLThe profit on an equity position is given by the first part of equation (1) and the profit on a fixed. income (i.e. local currency credit) position is given ...www.chicagofed.org/publications/workingpapers/papers/wp2000... -

http://www.mccombs.utexas.edu/faculty/keith.brown/ChileMater... de archivo: Microsoft Powerpoint - Versión en HTMLThus, the manager should maintain an unhedged foreign currency position. ... Black (1989) develops the notion of universal hedging for equity portfolios, ...www.mccombs.utexas.edu/faculty/keith.brown/ChileMaterial/To... -

https://gm.bankofny.com/Derivatives/Default.aspx
Equity derivatives are an ideal way to hedge or enhance an equity position or portfolio. We utilize equity derivatives to allow clients to hedge stock ...
https://gm.bankofny.com/Derivatives/Default.aspx - 84k -

http://www.rba.gov.au/PublicationsAndResearch/Bulletin/bu_de...
Formato de archivo: PDF/Adobe AcrobatDerivative positions to hedge equity. –28. –72. Net FX position on equity (after derivatives). 201. 272. Net expected foreign currency trade ...www.rba.gov.au/PublicationsAndResearch/Bulletin/bu_dec05/bu... -

http://www.arrowstreetcapital.com/pdf/2006_04_26 Investment ...
equity decisions result in incidental currency decisions, we neutralize those ... model forecasts the returns from taking a forward currency position. ...
www.arrowstreetcapital.com/pdf/2006_04_26 Investment Memora... -


Valeria Carcagno
Argentina
Local time: 11:04
Specializes in field
Native speaker of: Native in SpanishSpanish
PRO pts in category: 20
Login to enter a peer comment (or grade)

1 hr   confidence: Answerer confidence 5/5
Gain or loss on monetary position of equity


Explanation:
This is scenario that takes place in an inflationary economy. Although Mexico has managed to control its inflation, Mexican GAAP still requires companies to reflect the impact of inflation on the financial information, in accordance with the "Boletín B-10 y sus cinco Adecuaciones - Los Efectos de la Inflación en la Información Financiera". If a company keeps its accounting records that present historical amounts, the auditor is required to issue a qualified opinion because those amounts were not restated for purposes of inflation.
Transcribed below is an extract taken from "Documento Integrado del Boletín B-10 con Casos Prácticos" published in Spanish by the Instituto Mexicano de Contadores Públicos, A.C. (IMCP).
Text:

Concepto. El efecto por posición monetaria es producto de decisiones eminentemente financieras. Nace del hecho de que existen activos monetarios y pasivos monetarios que durante una época inflacionaria ven disminuido su poder adquisitivo, al mismo tiempo que siguen manteniendo so valor nominal. En el caso de los activos monetarios, esto provoca una pérdida, ya que cuando la empresa los convierta en dinero o haga uso del mismo, dispondrá de una cantidad igual al valor nominal de éstos, pero con un poder adquisitivo menor. Por lo que respecta a las deudas, el fenómeno es exactamente el mismo, pero con un efecto favorable para la empresa, ya que liquidará un pasivo con cantidades de dinero de menor poder adquisitivo.

Consequently in Mexico, companies use the National Consumer Price Index as a benchmark for restating their assets and liabilities for purposes of inflation.
Comment:
Resultado is "gain or loss".
Hope this helps.
18 years translating for the Mexican financial community (accounting firms, banks, brokerage firms, IMCP, etc.).

--------------------------------------------------
Note added at 5 hrs (2007-03-14 21:09:37 GMT)
--------------------------------------------------

The following link to a PwC website provides good insight on inflation accounting.

IFRS: Reporting Hyperinflation
www.pwc.com/Extweb/service.nsf/docid/40F6ACDA6FFB2567802571... - 111k - Cached - More from this site ... to calculate the gain or loss on the entity's daily net monetary position. ... monetary gain or loss can be calculated using average monetary positions during ...


    Reference: http://aicpa.org
    Reference: http://imcp.org.mx
Richard Cadena
Mexico
Local time: 09:04
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 650
Grading comment
Many thanks Richard!

Douglas
Login to enter a peer comment (or grade)




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