Sample Thesis Paper – Currency Translations
The book value per share of a company is affected by all changes that affect the value of the assets as well as by change that affect the number of outstanding shares in a company. Businesses with activities across national borders operate in different currencies. The financial statements of these companies are however are prepared on the basis of a single currency which is usually the currency of the home country of the parent company. Currency translations are therefore necessary.
Currency translation alters the value of the assets since the movements of exchange rates are not limited by the accounting principles (Omura, 2005). Changes in the exchange rates cause changes in the valuation of the assets under the different currencies even when the fundamental value of the assets does not changed. The implication is that the book value of a company may change due to changes in the exchange rates and the translation policies.
Please order custom thesis paper, dissertation, term paper, research paper, essay, book report, case study from the Order Now page.