EXCHANGE RATE DIFFERENCES-THE ACCOUNTING TREATMENT AND ITS INFLUENCE ON THE FINANCIAL PERFORMANCE OF AN ECONOMIC ENTITY
Currency rate differences arise when there are certain debt rights or obligations in foreign currency of an economic entity which are collected, i.e. paid for at a different course from the one displayed by the Romanian National Bank on the date of their establishment. Such differences, according to...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Nicolae Titulescu University Publishing House
2016-06-01
|
| Series: | Challenges of the Knowledge Society |
| Subjects: | |
| Online Access: | http://cks.univnt.ro/uploads/cks_2016_articles/index.php?dir=07_finance_and_accounting%2F&download=CKS+2016_finance_and_accounting_art.117.pdf |
| _version_ | 1819075199776063488 |
|---|---|
| author | Nicoleta Cristina MATEI Andreea Paula DUMITRU |
| author_facet | Nicoleta Cristina MATEI Andreea Paula DUMITRU |
| author_sort | Nicoleta Cristina MATEI |
| collection | DOAJ |
| description | Currency rate differences arise when there are certain debt rights or obligations in foreign currency of an economic entity which are collected, i.e. paid for at a different course from the one displayed by the Romanian National Bank on the date of their establishment. Such differences, according to the situation, generate expenditure or revenue which affects a company's financial result and, consequently, the accountant result as well. The results registered by an economic entity presented in the Profit and Loss Account provide information about its financial performance. This performance can be influenced by the favorable or unfavorable exchange rate differences existing when an economic entity carries out transactions or has incurred foreign currency loans having a significant share in the total amount of transactions or in capitals. The present paper shows the accounting treatment of the exchange rate differences and its impact on the financial performance. |
| first_indexed | 2024-12-21T18:21:37Z |
| format | Article |
| id | doaj.art-1ac69d388b824289bc3d8964d21bef85 |
| institution | Directory Open Access Journal |
| issn | 2068-7796 2068-7796 |
| language | English |
| last_indexed | 2024-12-21T18:21:37Z |
| publishDate | 2016-06-01 |
| publisher | Nicolae Titulescu University Publishing House |
| record_format | Article |
| series | Challenges of the Knowledge Society |
| spelling | doaj.art-1ac69d388b824289bc3d8964d21bef852022-12-21T18:54:31ZengNicolae Titulescu University Publishing HouseChallenges of the Knowledge Society2068-77962068-77962016-06-016-808813EXCHANGE RATE DIFFERENCES-THE ACCOUNTING TREATMENT AND ITS INFLUENCE ON THE FINANCIAL PERFORMANCE OF AN ECONOMIC ENTITYNicoleta Cristina MATEI0Andreea Paula DUMITRU1Lecturer, PhD, Nicolae Titulescu University, BucharestLecturer, PhD, Nicolae Titulescu University, BucharestCurrency rate differences arise when there are certain debt rights or obligations in foreign currency of an economic entity which are collected, i.e. paid for at a different course from the one displayed by the Romanian National Bank on the date of their establishment. Such differences, according to the situation, generate expenditure or revenue which affects a company's financial result and, consequently, the accountant result as well. The results registered by an economic entity presented in the Profit and Loss Account provide information about its financial performance. This performance can be influenced by the favorable or unfavorable exchange rate differences existing when an economic entity carries out transactions or has incurred foreign currency loans having a significant share in the total amount of transactions or in capitals. The present paper shows the accounting treatment of the exchange rate differences and its impact on the financial performance.http://cks.univnt.ro/uploads/cks_2016_articles/index.php?dir=07_finance_and_accounting%2F&download=CKS+2016_finance_and_accounting_art.117.pdfexchange rate differencesfinancial resultaccounting resultfinancial performance. |
| spellingShingle | Nicoleta Cristina MATEI Andreea Paula DUMITRU EXCHANGE RATE DIFFERENCES-THE ACCOUNTING TREATMENT AND ITS INFLUENCE ON THE FINANCIAL PERFORMANCE OF AN ECONOMIC ENTITY Challenges of the Knowledge Society exchange rate differences financial result accounting result financial performance. |
| title | EXCHANGE RATE DIFFERENCES-THE ACCOUNTING TREATMENT AND ITS INFLUENCE ON THE FINANCIAL PERFORMANCE OF AN ECONOMIC ENTITY |
| title_full | EXCHANGE RATE DIFFERENCES-THE ACCOUNTING TREATMENT AND ITS INFLUENCE ON THE FINANCIAL PERFORMANCE OF AN ECONOMIC ENTITY |
| title_fullStr | EXCHANGE RATE DIFFERENCES-THE ACCOUNTING TREATMENT AND ITS INFLUENCE ON THE FINANCIAL PERFORMANCE OF AN ECONOMIC ENTITY |
| title_full_unstemmed | EXCHANGE RATE DIFFERENCES-THE ACCOUNTING TREATMENT AND ITS INFLUENCE ON THE FINANCIAL PERFORMANCE OF AN ECONOMIC ENTITY |
| title_short | EXCHANGE RATE DIFFERENCES-THE ACCOUNTING TREATMENT AND ITS INFLUENCE ON THE FINANCIAL PERFORMANCE OF AN ECONOMIC ENTITY |
| title_sort | exchange rate differences the accounting treatment and its influence on the financial performance of an economic entity |
| topic | exchange rate differences financial result accounting result financial performance. |
| url | http://cks.univnt.ro/uploads/cks_2016_articles/index.php?dir=07_finance_and_accounting%2F&download=CKS+2016_finance_and_accounting_art.117.pdf |
| work_keys_str_mv | AT nicoletacristinamatei exchangeratedifferencestheaccountingtreatmentanditsinfluenceonthefinancialperformanceofaneconomicentity AT andreeapauladumitru exchangeratedifferencestheaccountingtreatmentanditsinfluenceonthefinancialperformanceofaneconomicentity |