• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>

20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>

PRE MOCK F9 JUNE 2022

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › PRE MOCK F9 JUNE 2022

  • This topic has 1 reply, 2 voices, and was last updated 2 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 3, 2022 at 10:11 am #657210
    Shi2004
    • Topics: 77
    • Replies: 30
    • ☆☆

    Hello sir this is a theory question. GN CO whose home currency is dollar has exported products to europe for several years and all european customers pay on credit basis in euros.
    It now plan to invest in a European storage, packing and distribution network. The investment will cost €13million and is to be financed by equal amount of debts and equity.
    How is that a translation and a transaction risk??
    The answer is transaction risk translation and economic risk.

    June 3, 2022 at 4:05 pm #657270
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49902
    • ☆☆☆☆☆

    There is transaction risk because money in Euros will be going from and to GN.

    There is translation risk because the investment is in Euros and will have to be converted in the $’s in GN’s Statement of Financial Position.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA Introducing professional skills into the Options exams

ACCA Professional Skills Webinar – Register now

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Chukwuedo2505 on Double Entry Bookkeeping (part b) – ACCA Financial Accounting (FA) lectures
  • mannannagpal on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • mannannagpal on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • mbarrie on FA Chapter 4 Questions Accruals and Prepayments
  • mbarrie on FA Chapter 4 Questions Accruals and Prepayments

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy