Determine and discuss the operating, transaction and translation exposures faced by the selected Company and its financial impact on the last three most recent financial years

you are expected to look at the financial statement notes, CEO/ Chairman

Statement, to find out what type of F/X exposure the chosen company faces. You need to

determine the financial impact on the company (e.g., revenue, cash flow, market value or

profits) owing to the movement in currencies.

E.g., If the Chairman mentioned that the Thai subsidiary for the company contributed to

40% of the revenue/ profits. It means the company deals with THB exposure. Find out

what is the amount of the revenue / profit (40% equivalent), you are then expected to

draw up quantitative analysis to show the financial impact of the forex exposure on the

calculated revenue / profit or market value. You can assume the dates when you would

like to show the exchange rate difference between sale value at the start and end of the

financial year. That will indicate the variance between the past and relatively recent

current exchange rate movements.

If the firm has cash flows from Vietnam due to the production or sale of goods. The

company is exposed to VND. In that case, for the movement in the VND what is the impact

for the Malaysian company?

(Categorise which type of exposure, i.e., Translation/ Transaction or Operating based on

your understanding. Calculate the impact of that exposure on Sales or Purchases, i.e., what

is the percentage change due to the appreciation or depreciation of the foreign currency.

Type of answer: Quantitative and Qualitative).

Another example may be investigating the investments, if the company is setting up a

factory in Philippines and you notice that the investments made in that market is

significantly large. You may investigate and critically discuss what is return on investment

or impact on the invested amount because of the increase or decrease in the currency

prices?

Determine and discuss the operating, transaction and translation exposures faced by the selected Company and its financial impact on the last three most recent financial years you are expected to look at the financial statement notes, CEO/ Chairman Statement, to find out what type of F/X exposure the chosen company faces. You need to determine the financial impact on the company (e.g., revenue, cash flow, market value or profits) owing to the movement in currencies. E.g., If the Chairman mentioned that the Thai subsidiary for the company contributed to 40% of the revenue/ profits. It means the company deals with THB exposure. Find out what is the amount of the revenue / profit (40% equivalent), you are then expected to draw up quantitative analysis to show the financial impact of the forex exposure on the calculated revenue / profit or market value. You can assume the dates when you would like to show the exchange rate difference between sale value at the start and end of the financial year. That will indicate the variance between the past and relatively recent current exchange rate movements. If the firm has cash flows from Vietnam due to the production or sale of goods. The company is exposed to VND. In that case, for the movement in the VND what is the impact for the Malaysian company If the firm has cash flows from Vietnam due to the production or sale of goods. The company is exposed to VND. In that case, for the movement in the VND what is the impact for the Malaysian company Categorise which type of exposure, i.e., Translation Transaction or Operating based on your understanding. Calculate the impact of that exposure on Sales or Purchases, i.e., what is the percentage change due to the appreciation or depreciation of the foreign currency. Type of answer: Quantitative and Qualitative). Another example may be investigating the investments, if the company is setting up a factory in Philippines and you notice that the investments made in that market is significantly large. You may investigate and critically discuss what is return on investment or impact on the invested amount because of the increase or decrease in the currency prices? Determine and discuss the operating, transaction and translation exposures faced by the selected Company and its financial impact on the last three most recent financial years you are expected to look at the financial statement notes, CEO/ Chairman Statement, to find out what type of F/X exposure the chosen company faces. You need to determine the financial impact on the company (e.g., revenue, cash flow, market value or profits) owing to the movement in currencies. E.g., If the Chairman mentioned that the Thai subsidiary for the company contributed to 40% of the revenue/ profits. It means the company deals with THB exposure. Find out what is the amount of the revenue / profit (40% equivalent), you are then expected to draw up quantitative analysis to show the financial impact of the forex exposure on the calculated revenue / profit or market value. You can assume the dates when you would like to show the exchange rate difference between sale value at the start and end of the financial year. That will indicate the variance between the past and relatively recent current exchange rate movements. If the firm has cash flows from Vietnam due to the production or sale of goods. The company is exposed to VND. In that case, for the movement in the VND what is the impact for the Malaysian company If the firm has cash flows from Vietnam due to the production or sale of goods. The company is exposed to VND. In that case, for the movement in the VND what is the impact for the Malaysian company Categorise which type of exposure, i.e., Translation Transaction or Operating based on your understanding. Calculate the impact of that exposure on Sales or Purchases, i.e., what is the percentage change due to the appreciation or depreciation of the foreign currency. Type of answer: Quantitative and Qualitative). Another example may be investigating the investments, if the company is setting up a factory in Philippines and you notice that the investments made in that market is significantly large. You may investigate and critically discuss what is return on investment or impact on the invested amount because of the increase or decrease in the currency prices