THE VALUE RELEVANCE OF THE FOREIGN CURRENCY TRANSLATION DIFFERENCES : A STUDY
OF MULTINATIONAL OIL AND GAS COMPANIES IN AUSTRALIA
THE VALUE RELEVANCE OF THE FOREIGN CURRENCY TRANSLATION DIFFERENCES : A STUDY
OF MULTINATIONAL OIL AND GAS COMPANIES IN AUSTRALIA
Author(s): Svetlana VladySubject(s): Economy
Published by: Editura Universitaria Craiova
Keywords: International Accounting Standards; Current and Temporal Methods, Foreign Translation Differences; Functional Currency; Value Relevance
Summary/Abstract: This paper investigates the relationship between foreign currency translation differences and changes in firm’s market equity value of the Australian multinational firms in the oil and gas industry. The paper empirically examines this relationship under the former Australian accounting standard AASB 1012 “Foreign Currency Translation”. The paper thereby supports the new accounting standard AASB 121 “The Effects of Changes in Foreign Exchange Rates” that adopted a functional currency approach. Since, AASB121 is equivalent to International Financial Reporting Standard IFRS 21 this paper could be useful to understand the effects of foreign currency translation process not only on Australian firms but worldwide
Journal: Revista tinerilor economişti
- Issue Year: 2008
- Issue No: 10
- Page Range: 52-63
- Page Count: 12
- Language: English