Economics is the study of producing and

Summarize the impact of foreign exchange rates on the company’s financial statements. What risks do foreign exchange rates pose?

VikaD [51]

Answer with Explanation:

Foreign exchange rates can have significant impact on the company's financial statements because the spot rate at that date can be affect the value of the company's assets. It is very common in consolidated financial statement of a multinational companies.

The impact on the financial statements can be as under:

The fluctuation in currency value can under or over statement of assets. liabilities and Income & Expenses.
The fluctuation makes the analysis of the financial statements meaningless. The performance of the company in a consolidated statement will be in a state that would not be better understood or time consuming by experts to develop understanding of what the financial statement is saying. It would be difficult for an ordinary person to understand the performance of the business.
It can also also manipulate the value of the assets of the company because increase in devaluation of the currency means increase in inflation and vice versa.
The value of the company acquired can be affected significantly which means that the investment (value of whole company) can turn into significant losses which means it can result reporting losses of in a consolidated financial statement. This would also result in decrease in the stock value of the group as a whole.

8 0

4 years ago

Are there any true communist economies today? Which economies call themselves communist, and what are they actually, if not comm

Stels [109]

Hey!! Glad I can help!!!

Answer:

Today, the existing communist states in the world are in China, Cuba, Laos and Vietnam. These communist states often do not claim to have achieved socialism or communism in their countries, but to be building and working toward the establishment of socialism in their countries.

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5 0

4 years ago

The balance of stockholders' equity at the beginning of the year and the end of the year was $ 45 comma 000 $45,000 and $ 64 com

UNO [17]

I believe d would be the answer

4 0

3 years ago

Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over

never [62]

Answer: competitive advantage (sustainable)

Explanation: when a company has sustainable competitive advantage, it means it has characteristics, attributes, features, assets etc that has set it apart from its peers, often quite difficult to reproduce setting them in a position for long term market superiority.

8 0

3 years ago

A company requires employees to retire at the age of 65. this policy is an example of?

Contact [7]

A company requires employees to retire at the age of 65.This policy exists an example of age norms.

<h3>What is age norms in retirement?</h3>

Retirement is the stage of life at which one decides to leave the workforce behind forever. The majority of industrialized nations, including the United States, have a national pension or benefits system in place to augment retirees' wages, and the usual retirement age in these nations is 65. Retirement has a lot of advantages.

The ability to accomplish the things one really wants to do, including travel, hobbies, volunteer work, or simply taking it easy, is made possible by not having to work hard. Age norms are sometimes described as societal guidelines for behaviour that is suitable for one's age, including routine behaviours and/or the timing and order of significant life events (e.g., marriage, parenthood, retirement; in sociological parlance, life events are typically role transitions).

For individuals who were born in 1955, the full benefit age is currently 66 years and 2 months, and it will progressively increase to 67 for those who were born in 1960 or later. Early retirement benefits will still be offered up until age 62, but they will be significantly scaled back.

Hence, A company requires employees to retire at the age of 65.This policy exists an example of age norms.

To learn more about Retirement refer to:

brainly.com/question/27602047

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7 0

1 year ago