[Excited_CPA]

I’m confused about the difference between Transaction Exposure and Economic Exposure when dealing with exchange rates.

They both seem like the exact same thing; the potential that you’ll lose money as a result of changes in the exchange rates.

Am I missing a subtle difference here?

BEC 04/14/12 87
FAR 08/28/12 88
AUD 10/06/12 94
REG 02/09/13 91

[SoCalCPA]

Economic = CF risk

Translation = FS risk

Transaction = just that one specific transaction

B - (4/2012)
A - (5/2012)
R - (1/2012) Done!
F - (10/2011) Done!

[Author]

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