Description
“Those Currency Headwinds from a strong U.S. dollar amounted to a $1.6 billion negative impact on revenues – $1.3 billion after the benefit of the company’s hedging program. In fact, on a constant-currency basis, total revenue for the quarter grew 21 percent year-over-year (instead of the 13 percent reported).” 22 Oct 2015, Google, Alphabet CEO Sundar Pichai If one only divides the Translation – losses of these 30 companies outside the Dow Jones Index with the Net Income of the respective year 2013, 2014 or 2015 it is calculated a quotient of -8,7%, -26,2% and -28%. For 2015 15 of these companies have quotients of -35 % or higher. If no compensating currency – movements happen these losses become real. Despite of this fact, only 10 of these 30 companies hedge active the Translation – Risk via NIH. With an increasing globalization such “currency – headwinds” could grow further. So the US – GAAP and IFRS – balance rules for the Translation – Risk should be changed. These and other interesting facts / solutions are within this book. To check possible special currency management problems we divide these 30 international operating US – corporations in the 3 categories: “Old Economy,” “New Economy” and “Pharma”: Alphabet – Google, Alcoa, AbbVie, Abbot Lab., Amazon, AT&T, Colgate – Palmolive, ConocoPhilips, Deere, Dow Chemical, Ebay, Emerson Electric, Facebook, Ford, Fox, GM, Honeywell, Illinois Tool Works, Kraft Foods – MDLZ, Eli Lilly, Monsanto, Mylan Generics, Oracle, Paccar, PepsiCo, Philip Morris, TEVA, Valeant Pharma, Yahoo and Zoetis. Previously published books: 1)IRFS 9: Risk – Controlling IAS 39 / IFRS 7 – Hedge Accounting VI 2)IFRS 9: Analyse der Fehler IAS 39 / IFRS 7 3)Currency Headwinds – Hedge Accounting V 4)Currency Headswind – Hedge Accounting V – Treasury in der Praxis 5)Treasury in Practice: 25 Dow Jones Groups- Hedge Accounting IV 6)Treasury in der Praxis: Devisen – und Derivate Management 7)Currency – and Financial Derivative Management in Practice: Hedge Accounting III 8)Mrd. Grab Devisenmanagement Teil III: Hedge Accounting III – 67 europaische Konzerne – 618 Mrd. Probleme 9)Treasury in Practice: Translation – Risk, Fair Value Hedge and Cash Flow Hedge: Hedge Accounting II 10)Mrd. – Grab Devisenmanagement Teil II: Hedge Accounting Soon appears: Hedge Accounting VII – Master Mind IFRS 9 – Routenplaner Corporate Finance”
