Can you connect the dots between exchange rates and goodwill impairments? Are the effects related to FX transactions or translations?
Can you explain currency neutral revenues? Are firms required to give effects on revenues of FX changes? If so, where? What can firms do to counter the effects of FX on top line?
Western Union’s earnings were impacted by the strong dollar. If you were on a job interview, and were asked, could you explain how FX translation affects revenue?
Can you explain how the dollar’s strength affects earnings? What type of disclosures will firms be required to make to discuss the exchange rate’s effect on earnings? How do you think the exchange rate will affect U.S. firms’ stock prices?
If you were the CFO, what factors would you consider in deciding whether to hedge against price changes in commodities, against changes in interest rates, and against changes in foreign currency? Do you think investors assess a firm’s hedging program before making an investment decision?
