The value relevance of the foreign currency translation differences: a study of multinational oil and gas companies in Australia

Svetalna Vlady
Additional contact information
Svetalna Vlady: Department of Accounting, Finance and Economics, Business School, Griffith University, Australia

Revista Tinerilor Economisti (The Young Economists Journal), 2008, vol. 1, issue 10, 52-63

Abstract: This paper investigates the relationship between foreign currency translation differences and changes in firm’s market equity value of the Australian multinational firms in the oil and gas industry. The paper empirically examines this relationship under the former Australian accounting standard AASB 1012 “Foreign Currency Translation”. The paper thereby supports the new accounting standard AASB 121 “The Effects of Changes in Foreign Exchange Rates” that adopted a functional currency approach. Since, AASB121 is equivalent to International Financial Reporting Standard IFRS 21 this paper could be useful to understand the effects of foreign currency translation process not only on Australian firms but worldwide

Keywords: International Accounting Standards; Current and Temporal Methods; Foreign Translation Differences; Functional Currency; Value Relevance (search for similar items in EconPapers)
JEL-codes: F00 F3 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://feaa.ucv.ro/RTE/010-07.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aio:rteyej:v:1:y:2008:i:10:p:52-63

Access Statistics for this article

Revista Tinerilor Economisti (The Young Economists Journal) is currently edited by Ionascu Costel

More articles in Revista Tinerilor Economisti (The Young Economists Journal) from University of Craiova, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Ionascu Costel ().