Q-2

Current Rate Method

Assets
Cash 6,000 75 80
Short term Inv 4,400 75 59
A/R 4,500 75 60
inventory 4,500 75 60
Intangible asset 600 75 8
P &E 10,000 75 133
Derivative asset 600 75 8

Total 30,600 408

Monetary and non monetaryMethod

Assets
Cash 6,000 75 80
Short term Inv 4,400 75 59
A/R 4,500 75 60
inventory 4,500 74 61
Intangible asset 600 70 9
P &E 10,000 70 143
Derivative asset 600 70 9

Total 30,600 419

 Historic rate
Exchange rate
Inventory rate
Liabilities and NW
Accounts payable 3,500 75 46.66667
Trade Payable 4,000 75 53.333
Provisions 1,000 75 13.33
Long-term loan 4,000 75 53.33
Deferred tax liab 600 75 8.00
Equity Capital 10,000 70 142.86
S-T bank loan 1,500 75 20.00
R&S 6,000 70 85.71429
Total 30,600 423.2381

CTA -15

and non monetaryMethod

Liabilities and NW
Accounts payable 3,500 75 46.66667
Trade Payable 4,000 75 53.333
Provisions 1,000 75 13.33
Long-term loan 4,000 75 53.33
Deferred tax liab 600 75 8.00
Equity Capital 10,000 70 142.86
S-T bank loan 1,500 75 20.00
R&S 6,000 70 85.71429
Total 30,600 423.2381

CTA -4
70
75
74
Q-3

CASE 1
Assets All current M/NM C/NC
Cash 10,000 1.15 11500 1.15 11500 1.15 11500
Financial asset 17000 1.15 19550 1.15 19550 1.15 19550
Account receivable 20,000 1.15 23000 1.15 23000 1.15 23000
Inventory 35,000 1.15 40250 1.12 39200 1.15 40250
Net fixed assets 50,000 1.15 57500 1.12 56000 1.12 56000
Financial Assets – Investments 15,000 1.15 17250 1.12 16800 1.12 16800
Capital- Work in progress 8,000 1.15 9200 1.12 8960 1.12 8960
Euro 155,000 178250 175010 176060

Liabilities
Accounts payable 12,000 1.15 13800 1.15 13800 1.15 13800
Provisions 1,000 1.15 1150 1.15 1150 1.15 1150
Deferred Payment 18,000 1.15 20700 1.15 20700 1.15 20700
Long-term debt 60,000 1.15 69000 1.15 69000 1.12 67200
Borrowings 8,000 1.15 9200 1.15 9200 1.15 9200
Equity 50,000 1.12 56000 1.12 56000 1.12 56000
Other Equity 6,000 1.12 6720 1.12 6720 1.12 6720
Euro 155,000 176570 176570 174770

CTA 1680 -1560 1290

Current rate = $1.15/Euro
Historic rate = $1.12/Euro

Temporal
1.15 11500
1.15 19550
1.15 23000
1.12 39200
1.12 56000
1.12 16800
1.12 8960
175010

1.15 13800
1.15 1150
1.15 20700
1.15 69000
1.15 9200
1.12 56000
1.12 6720
176570

-1560
CASE 2
Assets All current M/NM
Cash 10,000 1.035 10350 1.035 10350
Financial asset 17000 1.035 17595 1.035 17595
Account receivable 20,000 1.035 20700 1.035 20700
Inventory 35,000 1.035 36225 1.15 40250
Net fixed assets 50,000 1.035 51750 1.15 57500
Financial Assets – Investments 15,000 1.035 15525 1.15 17250
Capital- Work in progress 8,000 1.035 8280 1.15 9200
Euro 155,000 160425 172845

Liabilities
Accounts payable 12,000 1.035 12420 1.035 12420
Provisions 1,000 1.035 1035 1.035 1035
Deferred Payment 18,000 1.035 18630 1.035 18630
Long-term debt 60,000 1.035 62100 1.035 62100
Borrowings 8,000 1.035 8280 1.035 8280
Equity 50,000 1.15 57500 1.15 57500
Other Equity 6,000 1.15 6900 1.15 6900
Euro 155,000 166865 166865

-6440 5980
 C/NC Temporal
1.035 10350 1.035 10350 1.035
1.035 17595 1.035 17595 1.15
1.035 20700 1.035 20700
1.035 36225 1.15 40250
1.15 57500 1.15 57500
1.15 17250 1.15 17250
1.15 9200 1.15 9200
168820 172845

1.035 12420 1.035 12420

1.035 1035 1.035 1035
1.035 18630 1.035 18630
1.15 69000 1.035 62100
1.035 8280 1.035 8280
1.15 57500 1.15 57500
1.15 6900 1.15 6900
173765 166865

-4945 5980
Q4 135 105
8.5 10.5
7.5 9.5
100000000 740740.7
952381 211640.2

105 130
11 952381
9.5 769230.8
-183150
Q-4
Exposed assets ¥ 8.5 billion
Exposed assets ¥ 7.5 billion

During the year Yen appreciates from ¥ 135/$ to ¥ 105/$

Case A
Net translation exposure in beginning of the year,
Exposed Asset -Exposed Liability
8.5 - 7.5
¥ 1 billion

Net translation exposure in beginning of the year in $,

1 billion / 135
7407407.407 $

Case B Net translation exposure with change in Yen value in $,

1 billion / 105
9523809.524 $

Therefore Translation gain,

9523809.524 - 7407407.407
2116402.117 $

Case C
During the year Yen appreciates from ¥ 135/$ to ¥ 105/$

Total Exposed Asset = 8.5 + 2.5 = ¥ 11 Billion

Total Exposed Asset = 7.55 + 2 = ¥ 9.5 Billion

Therefore Exposure = 11 - 9.5 = ¥ 1.5 billion

Net translation exposure with change in Yen value in $,

1 billion / 105
9523809.524 $