Foreign Exchange Risk from Foreign-Currency Transactions and Hedging
First written in FY2017. 1 of 2 entries say "Materialised", first in FY2020. Latest entry: FY2020.
Valor Holdings moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
1 other company's latest entry also says "Materialised".
- FY2020MaterialisedAnnual report
「Foreign-exchange losses, an operating expense item, were previously included under “Other” in the consolidated income statement. As their materiality increased, they have been presented separately as “Foreign-exchange losses” from the current consolidated fiscal year, amounting to ¥710 million, compared with ¥56 million in the previous consolidated fiscal year.」
The impact of foreign-exchange movements materialized as ¥710 million in foreign-exchange losses, becoming sufficiently material to warrant separate presentation. - FY2017First statedAnnual report
「Derivative transactions consist of forward foreign-exchange contracts and currency swaps entered into to hedge foreign-exchange fluctuation risk relating to foreign-currency-denominated trade receivables and payables. For the hedging instruments and hedged items, hedging policy, methods of assessing hedge effectiveness, and other matters concerning hedge accounting, see “Significant Methods of Hedge Accounting” under “Matters Concerning Accounting Policies” above.」
The company recognizes foreign-exchange fluctuation risk associated with foreign-currency-denominated trade receivables and payables and states its policy of using forward foreign-exchange contracts and currency swaps for hedging purposes.