Cheriton plc has substantial translation exposure in US subsidiaries. The treasurer of Cheriton plc suggests that the
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Cheriton plc has substantial translation exposure in US subsidiaries. The treasurer of Cheriton plc suggests that the translation effects are not relevant because the earnings generated by the US subsidiaries are not being remitted to the UK parent, but are simply being reinvested in the US. Nevertheless, the director of finance of Cheriton plc is concerned about translation exposure because the stock price is highly dependent on the consolidated earnings, which are dependent on the exchange rates at which the earnings are translated. Who is correct?
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Kirti Kaushal
Having experience of more than 10 years is good enough to coach my students. Currently, I am working as an active supervisor of ACCA students. In my career, I helped students in financial accounting, management accounting, cost accounting, financial reporting, taxation, and audit. I also helped students publish their articles or papers in good journals. I also helped students with thesis and objective writing.
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