Managing Foreign Currency Exchange Risk

Document Type



Published by the American Institute of Certified Public Accountants in the Journal of Accountancy, volume 170 issue 2, 1990. Bryant users may access this article here.

Publication Source

Journal of Accountancy


When a company begins a transaction in a foreign country, it accepts economic risk due to fluctuating exchange rates. Scott R. Flicker, staff accountant at Arthur Andersen & Co., and Dennis M. Bline, PhD, assistant professor of accounting at the University of Texas-San Antonio, discuss several widely practiced hedging policies and strategies to manage this risk.