Foreign Currency Translation Under Two Cases-Integrated and Isolated Economies

Beaver and Wolfson (1982 BW) identify economic interpretability and symmetry as desirable properties for financial statement translation. They then analyze translation methods with respect to these properties assuming perfect and complete markets between and within both countries (referred to, here, as the integrated economies case).
This study extends BW's analysis by examining isolated economies characterized by perfect and complete internal markets and a random relationship between prices and exchange rates. In BW's integrated economies case, inflation differentials drive exchange rate changes. No exchange risk exists, although monetary assets are exposed to the risk of unexpected inflation. Isolated economies expose monetary and nonmonetary items to both exchange and inflation risk.
In both cases, economic interpretability and symmetry can be achieved only by current value accounting translated at current exchange rates. In the integrated economies case, symmetry alone is achieved through current value accounting translated by current exchange rates for monetary items and historical costs translated by historical rates for nonmonetary items. In the isolated economies case, symmetry alone is achieved through current value accounting for monetary items and historical cost for non-monetary items, all translated at the current rate. In both cases, including translation gains or losses in income is a condition for these results.
This extension of BW demonstrates (1) the translation rate required for symmetry depends upon the assumed relationship between prices and exchange rates, (2) a well-defined economic scenario exists where historical cost accounting using current rate translation results in symmetry, and (3) the results depend on including translation gains and losses in income.     

Hedging Foreign Exchange Exposure: Risk Reduction from Transaction and Translation Hedging

Using a sample of Swedish firms we investigate the risk reducing effect of foreign exchange exposure hedging. Further, we investigate risk reduction from using different hedging instruments, and particular interest is directed towards the impact of transaction exposure hedges and translation exposure hedges respectively. We find that firms' foreign exchange exposure is increasing with the level of inherent exposure, measured as the difference between revenues and costs denominated in foreign currency, and that it is decreasing with firm size. We find a significant reduction in foreign exchange exposure from the use of financial hedges. The evidence suggests that the usage of foreign denominated debt as well as currency derivatives reduce firms' foreign exchange exposure. Further, we find that transaction exposure hedges significantly reduce exposure, and that translation exposure hedges also reduce exposure. A possible explanation for the latter is that translation exposure approximates the exposed value of future cash flows from operations in foreign subsidiaries (i.e. economic exposure). If so, by hedging translation exposure, economic exposure is reduced.     

How Comprehensive is Comprehensive Income? The Value Relevance of Foreign Currency Translation Adjustments

Prior empirical research has been unable to forge an unambiguous link between foreign currency translation adjustments, which are an element of “other items of comprehensive income,” and firm valuation. This study adds to the existing literature by empirically testing the value relevance of foreign currency translation adjustments in an earnings and book value model. Interaction terms, which serve as proxies for the theoretical sources of exchange rate exposure, are included in the estimating equation. The main finding of this study is that foreign currency translation adjustments are significantly value relevant when their parameter estimates are allowed to vary in the cross‐section.     

外币报表折算方法选择的多维视角分析——从SFAS 8到SFAS 52转变的思考

外币报表折算方法的选择是争论较多的一个会计难题,从SFAS 8到SFAS 52的转变出发,从汇率理论到会计理论和决策理论进行多视角的分析,可以发现时态法和现时汇率法各自的理论上的优点和缺陷。立足现实的角度,我国的外币报表折算方法应采取更为灵活的策略。     

对我国外汇储备适度规模模型的探讨

长期以来,各国经济学家对外汇储备适度水平的定量测算作出了种种不懈的努力和尝试,提出了许多测算的思路与方法,总的看可以分为三类,即利用经验法则的比例分析法;从适应储备量的经济学定义出发的成本—收益分析法;利用多元回归与相关分析技术的储备需求函数分析法。 比例分析法的突出代表人物是美国经济学家特里芬(R.Triffin)教授。尤其是特里芬的储备/进口的比例法,选取了与储备相关度较大的贸易指标作参照,且一元回归分析也证实     

Translation Exposure Hedging Post SFAS No. 52

Translation exposure hedging is frequently said to have begun after firms adopted SFAS No. 8 and assumed to have ceased–or at least decreased–after adoption of SFAS No. 52 due to different treatments of translation gains (losses). Based on proprietary data, this study presents evidence from a small sample of firms which would be predicted to cease hedging translation exposure, but of which the majority did not.
The study focuses on eighteen firms which exclude at least 50% and up to 100% of the translation gains (losses) from the income statement after adopting SFAS No. 52. Of those eighteen firms, only seven ceased hedging. The other eleven firms not only continued hedging translation exposure, but hedged translation exposure of only those subsidiaries whose translation gains (losses) are now excluded from the income statement.
Characteristics which might explain the different decision are investigated: proportion of assets which are nonmonetary; the proportion of net assets located abroad; the geographic dispersion of subsidiaries; and the estimated effect on the balance sheet and income statement of changing from the temporal method to the current rate method of translation.
Univariate test results indicate that the geographic dispersion of die foreign subsidiaries as well as the proportion of net assets located abroad differ significantly between firms which ceased hedging and those which continued hedging after adopting the standard. Weak evidence of differential effects of the change to the current rate method on individual firm income statements and of different composition of assets between the two groups also was found. Multivariate analysis, using a linear probability model as well as a randomization procedure, provided weak results corroborating the significance of the proportion of net foreign assets to consolidated assets in differentiating between firms which ceased hedging and those which continued.     

国外产品事故信息报告与处理制度及其对我国的启示

日、美、欧等发达国家和地区都将产品事故报告和处理作为产品安全监管的基础保障性工作,经过多年实践,已形成了较为完备的管理模式。文章对日、美、欧的先进做法和经验进行了介绍,并阐释了在我国当前的社会经济背景下,建立以产品事故信息报告与处理为基础的反应式产品安全监管模式是十分必要的。     

The Foreign Exchange Exposure Management Practices of Finnish Industrial Firms

This study employs questionnaire survey and financial accounting data to extend earlier empirical work on the foreign exchange (FX) exposure management practices of Finnish industrial firms. The paper concentrates on: (i) the form that FX corporate hedging policy takes; (ii) the control of FX procedures and trading; and, (iii) our respondents' perceptions about their ability to predict FX rate changes for hedging decisions. Our results indicate that the extent to which firms hedge FX exposure depends on the type of exposure and the form that FX hedging policy takes. Also, a significant number of the firms pursue FX hedging strategies on the expectation of attaining trading profits and this strategy appears to be accommodated within their FX policies. This feature is not explicitly demonstrated in previous studies. Finnish firms hedge a much higher proportion of both transaction and translation exposures compared to economic exposure. We partly attribute this emphasis to the requirements of the Finnish Accounting Act, which came into effect in 1993. The organisational, historical and financial settings of the firms also have significant impacts on exposure management practices. The overall implication of those results is that firms respond to changes in the financial, economic and regulatory environments in which they operate.     

货币错配对我国货币政策影响的实证研究

货币错配是发展中国家普遍存在的现象,本文在对国内外相关文献进行梳理后,通过实证检验,发现货币错配在我国对M1产生的影响较为直接和迅速,对M2产生的影响较为持久,影响的程度也更大.冲击响应的正效应在经历了衰减和振荡后仍然保持在较高的位置,这说明货币错配对我国货币供应量的影响是长期的,协整检验结果揭示我国货币错配程度与货币供给量之间呈现较强的正相关性,这不仅削弱了央行的独立性,而且还可能导致以货币供应量为中介目标的货币政策的弱化甚至失灵,本文对加强审慎性监管提出了具体的建议.     

跨境贸易人民币结算政策对外汇储备的影响——基于进出口企业的结算选择博弈分析

运用博弈论的思想和方法,结合跨境贸易结算实际,构建了人民币升贬值预期下境内企业与境外交易对手结算货币选择的多目标博弈模型,并分析了企业的结算货币选择对外汇储备的影响.研究结果表明,企业对人民币预期和结算目的的多样化,使得博弈出现多种结果,从而跨境贸易结算引起的外汇储备变动不会向单一方向发展;但不同预期引导下的进出口结算货币的不对称选择会加剧外汇储备的波动.     

1900-1920年外国戏剧作品译改述略

1900-1920年,西方文化及观念大量传入中国,掀起了翻译外国文学作品的高潮,编译外国戏剧作品也是其中之一。内容上,初期的编译戏剧作品情节与中国传统戏剧相似,但也有作品保持原著的风格。从原著来源看,编译作品所涉国家众多,并受部分国家影响较大。从编译者来看,当时的许多编译者不仅译编戏剧作品,也涉足其他文学领域。     

数字货币——关于货币未来形式的大胆设想

数字货币将作为一种无形货币为全球市场经济注入新的活力。因为数字货币具备一套完整的终端系统,所以,数字货币一旦产生和应用,将会以其诸多优点给人类社会带来可观效益,同时也会给社会的各个层面带来深度的冲击和影响。     

浅谈现代物流技术对发行库货币安全的作用

分析了涉及银行发行库货币安全的主要环节及各环节中适宜采用的现代物流技术,总结了现代物流技术对发行库货币安全的几点主要作用。     

货币反替代及其对中国股市的冲击

货币反替代是指在一国的经济发展过程中,居民在本币坚挺且存在升值趋势下,普遍看好本币的币值或在本币货币资产收益率明显高于外国货币资产收益率时,改变原来对外币的偏好,从而抛售外币资产,持有本币资产,使外币过分集中于中央银行的行为和现象。本文在封“热钱”的内涵进行辨析的基础土,分析货币反替代的目的和渠道,并封1990—2007年货币反替代率进行测度,进而实证检睑货币反替代封中国股市的冲击,研究发现：货币反替代规模较大、流动速度加快、反转性强;货币反替代与国内股票价格正相关,即货币反替代会推动国内股价上涨;当货币反替代出现反转时,则会引起国内股价下跌.     

财务呈报动因与盈余信息质量

财务报告是报告编制者在会计准则和呈报动因驱动下权衡成本和收益的一个产物。中国上市公司独特的外部制度环境和内部治理结构,形成了其独特的财务呈报动因,本文通过上海和深圳证券交易所1998-2005年上市公司的财务数据,全面考察了我国上市公司财务呈报动因对其盈余信息质量的影响。研究结果表明:上市公司所在地的法制环境和市场化程度等外部环境,以及公司治理结构等内部因素在很大程度上决定了公司盈余信息的质量。由此进一步指出:政府监管机构应该有针对性地优化上市公司所处的信息报告环境,建立健全法律制度,深入公司治理机制的改革,才能有效地提高上市公司的财务报告质量。     

继续实施财政、货币政策的探讨

总体来看,今年上半年我国的经济金融形势正在逐步好转,住宅投资较快增长,个人信贷迅速增加,扩大内需对经济增长的拉动作用趋于增强,消费者信心指数稳定上升,价格水平继续回升.同时,国际经济增速较缓,外部需求对国内经济的影响仍在加剧,外贸出口形势比较严峻;集体和个体等的投资环境改善缓慢,民间投资积极性没有充分调动起来,固定资产投资增长后劲不足;受农民收入和城市居民消费转型的影响,消费需求增长出现较大幅度回升的可能性不大.经济增长更多地依靠积极的财政政策的拉动,经济自身内在的增长动力尚未有效地调动起来,需要财政、货币政策发挥更加有效的作用.因此,我们应积极主动地对财政、货币政策进行必要的调整,将宏观经济政策的作用重心,逐步从应急式的缓解短期矛盾转移到为调动民间投资、推动结构调整、启动经济增长的内在机制上来.     

数字货币的概念辨析与问题争议

明确界定电子货币、虚拟货币和数字货币的概念,通过对三种非法币形式货币的对比研究,指出以比特币为首的数字货币与电子货币和虚拟货币的主要区别。从数字货币的基本特征出发,针对数字货币是否值得信任、是否真的安全和能否成为真正的货币三个具有争议性的问题给予综述和讨论。分析认为数字货币作为颠覆性创新虽然具有不可小觑的发展前景,但其健康发展离不开政府的认可和法律法规的保护,以及与传统金融体制的相互妥协和融合创新。最后本文指出数字货币的当前重点研究方向。