Foreign currency monetary items

Foreign currency monetary items is a corporate finance concept referring to all the assets and liabilities of a company denominated in foreign currency and whose value is easily…

Foreign Currency Options

A Foreign Currency or Foreign Exchange Option is a contract through which a seller offers a buyer the possibility – not the obligation – to purchase or sell a specific…

Foreign currency remeasurement

Foreign currency remeasurement is an accounting method by which companies whose businesses are subject to currency risk translate the value of their foreign currency-denominated monetary assets and liabilities to their…

Foreign currency revaluation

Foreign currency revaluation is a treasury concept defining the method by which international businesses translate the value of all their foreign currency-denominated open accounts – i.e. payable and receivable transactions…

Foreign currency risk

Foreign currency risk, also known as exchange rate risk, is the financial risk arising from fluctuations in the value of a base currency against a foreign currency in which a…

Foreign currency risk management

Foreign currency risk management or simply currency risk management are the terms to describe the strategies that help a company or investor to protect their cash flows, assets or liabilities…

Foreign currency transaction

Foreign currency transaction is the term used to describe all operations conducted by businesses or individuals that are denominated in a currency other than a company’s functional currency, or that…

Foreign currency translation

Foreign currency translation, or simply currency translation is an accounting method by which an international company translates the results of its foreign subsidiaries in its reporting currency. Foreign currency translation comprises…

Foreign currency valuation

Foreign currency valuation and foreign currency revaluation are treasury concepts related to the accounting process. They define the process by which a company translates the value of their open foreign…

Foreign exchange

Foreign exchange is the trading of one currency for another in the foreign exchange market. It is also commonly referred to as “forex”, “FX” or “currency exchange”. Foreign exchange is essential…

Foreign exchange accounting

Foreign exchange accounting or FX accounting is a financial concept to define the corporate treasurers’ exercise consisting of reporting all the company’s transactions in currencies different than their…

Foreign exchange broker

A foreign exchange broker (also known as an FX broker or a forex broker) buys and sells currencies on behalf of clients while charging a commission for the service. Brokers, along…

Foreign exchange commission

In foreign exchange, the commission is the fee charged for the service of carrying out a foreign currency exchange transaction. Commissions are the primary source of profit for an FX provider….

Foreign exchange control

Foreign exchange control is the procedure by which a government intervenes in the foreign exchange market, banning or restricting sales and purchases of local currencies by non-residents as well as sales…

Foreign exchange gain or loss

Foreign exchange gains and losses or FX gains and losses is an accounting concept referring to the impact of foreign exchange risk in the financial statements of businesses’ monetary…