Translation exposure deals with the effects of exchange rate fluctuations on a multinational firm's consolidated financial statements. All translation adjustments in the accounting books of multinational firms have to be made according to the standards of the Financial Accounting Standards Board (FASB), which is the authoritative body prescribing accounting rules in the United States.
Scenario: You head the accounting department at Globus, Inc. The change from FASB Statement 8 to Statement 52 has caused a lot of confusion in your department.
Your Task: Prepare a PowerPoint presentation summarizing the main features of FASB Statement 52 and explaining how it differs from statement 8. Use the Notes feature in PowerPoint to document your more detailed explanation of the topic. Your audience for this presentation will be the junior accounting staff in your department.