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FX Initiative Blog

Actionable insights on foreign exchange risk management from FX Initiative.

July 2019 Newsletter

Explore our July 2019 newsletter and discover the latest blog posts and insights from FX Initiative. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources.

Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >

 

June 2019 Newsletter

Explore our June 2019 newsletter and discover the latest blog posts and insights from FX Initiative. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources.

Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >

 

FX Net Investment Hedging Nuances

Would you like to know the nuances of FX net investment hedging? FX Initiative’s FX Net Investment Hedging webinar explores how multinational corporations can hedge assets and equity in foreign subsidiaries, and demonstrates the importance of formally designating derivatives as net investment hedges for accounting purposes to benefit from reporting FX gains and losses in equity on the balance sheet. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >

 

 

FX Strategies for Foreign Subsidiaries

Would you like to optimize FX strategies for foreign subsidiaries? FX Initiative’s Hedging Foreign Subsidiaries course outlines the fundamentals of hedging net income and net investment exposures in foreign subsidiaries, and reveals the cash flow and financial reporting implications of hedging FX translation risk with currency derivatives. Get started with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >

 

 

Learn How To Simplify Foreign Subsidiary FX Strategies

Foreign exchange (FX) translation risk applies to companies with foreign currency functional subsidiaries operating abroad. Unlike FX transaction risk, which is commonly hedged, FX translation risk tends to take a more strategic approach to currency risk management, and companies must decide if, when and how to hedge this type of foreign exchange risk. Translation exposure exists as a result of translating local currency functional financial statements (i.e. the Income Statement and Balance Sheet) into the reporting currency of the parent for consolidation purposes. This process creates foreign exchange translation risk in the form of net income (income statement) and net investment (balance sheet) exposures.

The following 5 minute introduction video for FX Initiative’s “Hedging Foreign Subsidiaries” course outlines the two main learning objectives covered, which include: (1) to explore the concept of hedging net income generated at foreign subsidiaries, and recognize the accounting, forecasting, and cash flow challenges associated with hedging future earnings, and (2) to explore the concept of hedging net investments in foreign subsidiaries, and recognize how "elective" accounting treatment can mitigate earnings volatility and better align the financial reporting of a hedge.

 

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If you are interested in learning more about best practices for hedging foreign subsidiaries, sign up for our Foreign Exchange Risk Management Training today and access our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Managing FX risk has become a higher priority for many firms for 2017 and it is now easier than ever to learn the fundamentals of currency risk management. Make this the year to reduce FX risk and reap rewards abroad by taking the FX Initiative for your international business today!

Click here to start your FX Risk Management Training today!

Cheers to your global organization's continued success in the new year,

The FX Initiative Team
support@fxinitiative.com