Discussion Post: Exxon Mobil and Chevron Corporation
To complete the requirements of this exercise, access the 2016 Form 10-K for both Exxon Mobil Corporation and Chevron Corporation
Required:
• Determine whether each company's foreign operations have a predominant functional currency. Discuss the implication this has for the comparability of financial statements between the two companies.
• Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the 3 most recent years. Explain the sign positive or negative of the translation adjustment in each of the 3 most recent years. Compare the relative magnitude of the translation adjustments between the 2 companies.
• Determine whether each company hedges the net investment in foreign operations. If so, determine the type of hedging instrument used.
• Prepare a brief report comparing and contrasting the foreign currency translation and foreign currency hedging policies of these 2 companies.
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.