Complete the FX Risk Exposures course!    

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Course Summary

"Business is a money game with few rules and a lot of risk.”  This quote from Bill Gates underscores the general concept of business risk, which is the possibility of inadequate profits or losses due to uncertainty. Applying this quote to international business, the money game is played with multiple currencies, and a key uncertainty is foreign exchange risk or currency risk, which is the change in price of one currency against another.

Foreign exchange risk exposures have the potential to impact key financial metrics including the income statement, the balance sheet, working capital and cash flows, as well as purchasing power. A notable example of currency risk is in Apple’s supplemental material that accompanied their 2016 first quarter earnings, which states that “$100 of Apple’s non-U.S. dollar revenue in Q4’14 translates into only $85 U.S. dollars today” and “in constant currency, Q1’16 revenue would have been $5 billion higher, reflecting an 8% Y/Y increase.” Apple, among many other multinational corporations, must examine the specific foreign currency exposures they face in order to identify the risks more precisely and mitigate the impact to their bottom line more effectively.

Many global corporations expect their finance and accounting professionals to manage foreign exchange risk without providing formal training, and consultants and advisors often prefer to dispense key advice on an hourly consulting basis. This program provides a valuable opportunity to learn how you can map out your firm’s foreign exchange risk exposures across the enterprise, regardless of whether you are a Fortune 500 company or a small or medium-sized enterprise (SME). Upon completion of this program, you will be able to recognize common foreign exchange risk exposures and better assess your firm’s overall foreign exchange risk profile in pursuit of managing FX risk more efficiently and effectively when conducting business internationally.

Questions to Consider
  • Would you like to learn a framework for assessing your company’s FX risk profile?
  • Are you curious where to look on the Income Statement and Balance Sheet for FX risk exposures?
  • Do you want to see Apple’s 10-K disclosures related to foreign exchange?
  • Have you explored the accounting similarities and differences between foreign currency revenues, expenses, receivables, and payables?
  • Have you wondered how recent events like Brexit are factored into a FX risk analysis?
  • Can you visualize how foreign subsidiaries impact the overall value of multinational corporations?
  • These questions and more are addressed in this noteworthy FX Risk Exposures course.
Learning Objectives
  1. Define 6 key terms for assessing a firm’s foreign exchange risk profile, and identify the 3 different types of foreign exchange risk.
  2. Explore the concept of Foreign Exchange Transaction Risk, and recognize its impact on cash flows and the financial statements.
  3. Explore the concept of Foreign Exchange Translation Risk, and discover how the accounting consolidation process applies to foreign subsidiaries.
Additional Information

Presenter: Evan Mahoney, CPA
Sponsor: FX Initiative, LLC
Last Review Date: September 2024
Course Expiration: 1 Year from Enrollment Date
Duration: 1 Hour
CPE Credits: 1 CPE Credit
Program Level: Basic
Prerequisites: None
Advanced Preparation: None
Delivery Method: QAS Online Self Study
Field of Study: Management Services

To contact us about this program, including complaint, refund, and cancellation policy information, please email support@fxinitiative.com or call (312) 566-7475.


FX Initiative, LLC (Sponsor ID#112915) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Concerns regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org