Question
Chikennella has considerable non-US operations. The Table below shows. Chikennella 2015 revenue by geographic segment along with related exchange rates at the beginning and end
Chikennella has considerable non-US operations. The Table below shows. Chikennella 2015 revenue by geographic segment along with related exchange rates at the beginning and end of the year. The exchange rates represent the foreign current equivalent of $1. Table with firm's Year ended December 31, 2015 ($ millions) , revenue , USD exchange rates for 01/01/15 and 12/31/15. Asia, Europe, China, Middle East, Oceania. Canada, Africa, Latin American Required Most Chikennellas contracts are denominated in $US. Assume instead that Chikennella wrote contracts for its international customers in their respective domestic currencies. For simplicity, assume the contracts were written on January 2, 2015, and revenue was collected and recognized in December 31, 2015. Use the exchange rate information in the table to calculate the effect on Chikennellas 2015 revenue if contract had been denominated in the various foreign currencies.
How should we, as analysis, treat such a foreign exchange gain or loss? Please explain
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