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Author: MichaelRead Big gold star, 5000 posts Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 13873  
Subject: Re: Terminology question - accounting related Date: 8/18/2009 1:05 PM
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The issue is foreign exchange liabilities and their treatment on the balance sheet.
If the foreign currency rises, the value of the liability has to be restated.
Would it be correct to say: "Changes in the exchange rate affect the value of a foreign exchange liability"

Or would you need a different word for "value", since it's a liability?
Could you say "going-concern value"?

Would it be correct to say "Liabilities however have to be written up if their value is deemed to have increased permanently."

Or is any of the terminology incorrect?

AD


The value of a foreign exchange liability is affected by exchange rate changes.

Foreign exchange liabilities are affected by change in the international exchange rate.

The effect of exchange rates on the value of foreign exchange liabilities is to be expected.

The rise and fall of foreign exchange liabilities is dependent on prevailing international monetary exchange rates.

The value of the basket of foreign exchange liabilities is affected by the trade value of international exchange rates.

The relationship between committed foreign exchange liabilities and prevailing exchange rates affects the value of the holdings.

The value of foreign exchange liabilities fluctuates with the change in exchange rates.

Changes in the value of foreign exchange liabilities are to be expected since the value of the liabilities fluctuate with prevailing international exchange rates.

MichaelR
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