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Foreign Exchange Risk Management Of Chinese Enterprises With Financial And Accouting Method

Posted on:2003-08-25Degree:MasterType:Thesis
Country:ChinaCandidate:W L GuFull Text:PDF
GTID:2156360092980975Subject:Business management
Abstract/Summary:PDF Full Text Request
Nowadays world economy is merging. Countries economies depends on each other far more intensively than before. China will develop its foreign trade with other countries more rapidly now that it becomes a member of WTO. Its economy is liable to be influenced by the world economy. In the past thirty years.the global financial market has renovated deeply. With the breakdown of the Breton Woods Agreement, most countries have chosen floating-rate system instead of fixed-rate system. So exchange rates fluctuate more frequently. With the result of the reform of foreign exchange management system and the development of foreign exchange market in China, RMB exchange rate is changing more frequently. Enterprises is facing greater exchange risk.It is an important task for modern enterprises to manage foreign exchange rate with the uncertainty fators. Firms, which are lack of risk sensibility and experience, lost a lot in exchange rates fluctuation. Chinese enterprises must solve the problem of improving the ability of controlling risk.This essay analyses the Characteristics of foreign exchange risk, together with peculiarity of RMB exchange market. It also discloses corporate ruling problems of foreign exchange risk, studies accounting principles and procedures of confirmation, measurement, disclosure, as well as financial management strategies and methods. The aim of this essay is to provide domestic enterpriseswith some reference of measuring risk magnitude, making strategy and choosing hedging methods. It also suggests some ideas of risk management.This paper consists of four parts:Chapter I points out the problems of foreign exchange risk management, studies the development of foreign transactions and reasons of exchange rate fluctuation. It introduces the elemental types and characteristics of foreign exchange risk, as well as the necessity of strengthening exchange risk management in different aspects.Chapter II introduces the common accounting methods dealing with exchange risk, including procedures and manners of accounting confirmation, measurement, disclosure, It also analyses the special accounting methods of derivative financial instruments reducing exchange riskChapter III studies methods and strategies of controlling foreign exchange risk. It provides some skills of risk management using case analyses;Chapter IV suggests some management principles and methods for domestic enterprises.The ending part of this essay describes the urgency and necessity of strengthening exchange rate risk management, as well as aggrandizing financial and accounting research for a better risk management...
Keywords/Search Tags:foreign exchange risk, exchange rate, risk Management, operational risk, contractual risk
PDF Full Text Request
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