This assessment is linked with the following CLOs (as per syllabus): CLO 2 Distinguish the features of
Question:
This assessment is linked with the following CLOs (as per syllabus):
CLO 2 Distinguish the features of different types of foreign exchange markets
CLO 5 Calculate the extent of foreign exchange risk exposure and recommend tools for its management
Question(s) link with CLOs:
Question | CLO 1 | CLO 2 | CLO 3 | CLO 4 | CLO 5 | CLO 6 | Max. point | Points earned |
1 | 0% | 100% | 0% | 0% | 0% | 0% | ||
2 | 0% | 0% | 0% | 0% | 100% | 0% | ||
TOTAL |
Instructions for Case Analysis
- The tables should be prepared using the table feature of MS WORD within the descriptive answers of the project and uploaded as MS WORD documents.
- Last Date for Submission: April 11, 2022 - 12 AM
- No. of attempts: 01
- Minimum Words for the theory question: 300 words
- Plagiarism percentage Allowed: 20%
- The student’s name and ID # should be written on the first page of the assignment.
RUBRICS
Project Grading Rubrics
Criteria | Poor 0-50% | Average 51-70% | Good 71-90% | Excellent 91-100% |
Identification of the problem – 20% | Unable to identify the key issues of the topic | Just able to identify the key issues of the topic | Clearly identified the key issues of the topic | Excellent ability to identify the key issues of the topic |
Analysis and arguments – 40% | Unable to select and use the relevant methods of analysis/theories for arguing the point | Able to select and use some methods of analysis/theories for arguing the point | Skilled at selecting and using appropriate methods of analysis/theories for arguing the point | Adept at selecting and using appropriate methods of analysis/theories for arguing the point |
Conclusion -20% | The conclusions do not flow from the analysis | Fairly appropriate conclusions | Good conclusions that flow from the analysis | Excellent conclusion closely flowing form the analysis |
References and Formatting – 10% | Poor formatting and unprofessional references | Basic formatting and few references | Good formatting and references | Excellent formatting and professional references |
Submission -10% | Not submitted | Late without a valid reason | Late with a valid reason | On time |
Part 1 - CLO 2 - 10 marks CLO 2 Distinguish the features of different types of foreign exchange markets The following link takes you to the Triennial Central Bank Survey of Foreign Exchange Markets in 2019 published on the website of the BIS (Bank for International Settlements). https://www.bis.org/statistics/rpfx19.htm?m=6_381_677
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Part 2 - CLO 5 - 10 marks
CLO 5 Calculate the extent of foreign exchange risk exposure and recommend tools for its management
Dragon Corporation is the Taiwanese affiliate of a U.S. manufacturer. It has the balance sheet at the end of the financial year 2020 as shown below. The historical exchange rate between the two currencies was $0.0322=NT$1. During the year the Taiwanese dollar revalues to US $0.0357=NT$1.
The head office is preparing its consolidated financial statements for 2020. Calculate and comment on the accounting exposure and the translation gain/loss from the Taiwanese affiliate using different translation methods that arise due to foreign exchange risk exposure.
ASSETS | NT$ | LIABILITIES & OWNERS’ EQUITY | NT$ |
Cash | 5,000 | S-T payables | 21,000 |
Receivables | 14,000 | L-T Debt | 27,000 |
Inventories | 22,000 | O/E | 32,000 |
Fixed Assets (net) | 39,000 | ||
Total | 80,000 | Total | 80,000 |
Auditing A Risk Based Approach to Conducting a Quality Audit
ISBN: 978-1305080577
10th edition
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg