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Mining Sector Currency Risk Management Strategies: Responses to Foreign Currency Accounting Regulation
Citation
Godfrey, JM and Yee, B, Mining Sector Currency Risk Management Strategies: Responses to Foreign Currency Accounting Regulation, Accounting and Business Research, 26, (3) pp. 200-214. ISSN 0001-4788 (1996) [Refereed Article]
DOI: doi:10.1080/00014788.1996.9729511
Abstract
This study investigates the impact of Approved Accounting Standard ASRB 1012, Foreign Currency Translation, on the currency risk management strategies of firms in the Australian mining industry. ASRB 1012 increased the responsiveness of most mining companies' reported earnings to exchange rate movements, and it was predicted that firms would alter their capital structures in response to the increased accounting exposure. The results suggest that mining companies decreased their proportionate levels of long-term foreign debt and increased their share capital and/or reserves to mitigate the effects of the standard on their contracts. This information is useful to standard-setters seeking an awareness of the potential micro and macro-economic effects of their pronouncements.
Item Details
Item Type: | Refereed Article |
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Research Division: | Commerce, Management, Tourism and Services |
Research Group: | Accounting, auditing and accountability |
Research Field: | Financial accounting |
Objective Division: | Expanding Knowledge |
Objective Group: | Expanding knowledge |
Objective Field: | Expanding knowledge in human society |
UTAS Author: | Godfrey, JM (Professor Jayne Godfrey) |
ID Code: | 8385 |
Year Published: | 1996 |
Deposited By: | Accounting and Corporate Governance |
Deposited On: | 1996-08-01 |
Last Modified: | 2011-08-19 |
Downloads: | 0 |
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