$1.6 billion negative impact on revenues -
$1.3 billion after the benefit of the company's hedging program.
In fact, on a constant-currency basis, total revenue for the quarter grew 21 percent year-over-year (instead of the 13 percent reported)."
22 Oct 2015, Google, Alphabet CEO Sundar Pichai
If one only divides the Translation - losses of these 30 companies outside the Dow Jones Index with the Net Income of the respective year 2013, 2014 or 2015 it is calculated a quotient of -8,7%, -26,2% and -28%. For 2015 15 of these companies have quotients of -35 % or higher. If no compensating currency - movements happen these losses become real. Despite of this fact, only 10 of these 30 companies hedge active the Translation - Risk via NIH. With an increasing globalization such "currency - headwinds" could grow further. So the US - GAAP and IFRS - balance rules for the Translation - Risk should be changed. These and other interesting facts / solutions are within this book.
To check possible special currency management problems we divide these 30 international operating US - corporations in the 3 categories: "Old Economy", "New Economy" and "Pharma": Alphabet - Google, Alcoa, AbbVie, Abbot Lab., Amazon, AT&T, Colgate - Palmolive, ConocoPhilips, Deere, Dow Chemical, Ebay, Emerson Electric, Facebook, Ford, Fox, GM, Honeywell, Illinois Tool Works, Kraft Foods - MDLZ, Eli Lilly, Monsanto, Mylan Generics, Oracle, Paccar, PepsiCo, Philip Morris, TEVA, Valeant Pharma, Yahoo and Zoetis.
Previously published books:
1) IRFS 9: Risk - Controlling IAS 39 / IFRS 7 - Hedge Accounting VI
2) IFRS 9: Analyse der Fehler IAS 39 / IFRS 7
3) Currency Headwinds - Hedge Accounting V
4) Currency Headswind - Hedge Accounting V - Treasury in der Praxis
5) Treasury in Practice: 25 Dow Jones Groups - Hedge Accounting IV
6) Treasury in der Praxis: Devisen - und Derivate Management
7) Currency - and Financial Derivative Management in Practice: Hedge Accounting III
8) Mrd. Grab Devisenmanagement Teil III: Hedge Accounting III -
67 europäische Konzerne - 618 Mrd. Probleme
9) Treasury in Practice: Translation - Risk, Fair Value Hedge and Cash Flow Hedge: Hedge Accounting II
10) Mrd. - Grab Devisenmanagement Teil II: Hedge Accounting
Hedge Accounting VII - Master Mind
IFRS 9 - Routenplaner