【正文】 ent rate method for translating foreign currency denominated assets and liabilities into dollars. For foreign currency revenues, expenses and gains/ losses, “the exchange rate at the dates used on which those elements are recognized shall be used” (Kasibhatla and Eduardo, 2020). FASB 52 presents standards for foreign currency translation that are designed to (1) Provide information that is generally patible with the expected economic effects of a rate change on an enterprise39。s cash flows and equity and (2) Reflect in consolidated statements the financial results and relationships as measured in the primary currency in which each entity conducts its business (referred to as its functional currency). An important feature of FASB 52 was that translation gains and losses are shown in the balance sheet in a new and separate account known as the‘ Cumulative Translation Adjustment’ account. The functional currency translation approach adopted in this Statement enpasses: a. Identifying the functional currency of the entity39。s economic environment b. Measuring all elements of the financial statements in the functional currency c. Using the current exchange rate for translation from the functional currency to the reporting currency, if they are different d. Distinguishing the economic impact of changes in exchange rates on a investment from the impact of such changes on individual assets and liabilities that are receivable or payable in currencies other than the functional currency. The next section of the paper reviews the literature on exposure management practices of panies. It also addresses the issue of the new standard FASB 52. Section 3 presents the survey responses and analysis of the results. Section 4 describes the hedging techniques used by panies and how panies determine the decision to hedge. The last section presents a summary and implications of the study. Literature Review All firms dealing in multiple currencies face a risk of unanticipated gains/ losses due to sudden changes in exchange rates. The literature on exchange rate exposure has grown rapidly more specifically after the financial crises in 1990s. These crises have made it clear that exchange rates may have significant real economy effects. There are a large number of theories of why panies manage risk, including foreign exchange risk. (Christie and Marshall, 2020) Coping with risk has bee an important managerial function, especially after the increased volatility in the foreign exchange market in recent years. The magnitude of the risk involved is illustrated by the 163。150 million exchange loss reported by the UK food and drinks pany Allied Lyons in 1991 (Corporate Finance Magazine, April 1991). According to the literature, there are different sources/ types of exchange rate exposure (SchaferPohnWeidinger, 2020). The main types of exchange rate exposure are: 1. Translation exposure is the exposure shortterm foreign assets are exposed to due to inflation uncertainty, while domestic assets are not exposed to this exchange risk (Jorion, 1990). Shapiro defines it as the accounting based changes in consolidated financial statements caused by exchange rate changes. Translation exposure arises on the consolidation of assets, liabilities and profits denominated in foreign currency in the process of preparing consolidated accounts. 2. Transaction Exposure Eiteman et al (2020) define transaction exposure as a measure of change in the value of outstanding financial obligations which are incurred prior to a change in exchange rates but are not due to be settled until after exchange rates change. Transaction exposure arises from the possibility that the future cash flow may change as a result of exchange rate changes. Marshall(2020) finds that transaction risk is perceived by US, UK and Asian Companies to be the most important risk to