Premium
Foreign currency translation information reported by Fortune 500 companies
Author(s) -
Tang Roger Y. W.
Publication year - 1995
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970060308
Subject(s) - currency , business , foreign exchange , foreign exchange risk , monetary economics , quality (philosophy) , sample (material) , international economics , accounting , economics , philosophy , chemistry , epistemology , chromatography
Since the early 1980s, we have witnessed continuing expansion in U.S. foreign trade and international investment. During the same period, we also observed substantial changes in the exchange rates between U.S. dollars and other major foreign currencies. This article summarizes foreign currency translation information reported by 113 sample firms of the Fortune 500 companies in 1993. The areas covered include functional currencies, exchange gains and losses, and forward exchange contracts. The quality of corporate reporting in foreign currency translation has improved gradually since SFAS No. 52 became effective in 1982. However, many firms are still not providing disclosures that extend beyond the minimum requirements of the current standards.