Managing Foreign Currency Exchange Risk
American Institute of Certified Public Accountants
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.