Foreign Currency Translation Discussion Forum [WLOs: 1, 2, 3, 4,

 Foreign Currency Translation Discussion Forum [WLOs: 1, 2, 3, 4, 5, 6] [CLO: 5]

Prior to beginning work on this discussion forum, read Chapters 6 and 7 of the text.

What are the two major conceptual issues that must be resolved in translating foreign currency financial statements? What factors create a balance sheet (or translation) exposure to foreign exchange risk? How does balance sheet exposure compare with transaction exposure?

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