Financial Accounting Standards Board Statement No. 52 (FAS 52) replaced FAS 8 in 1981 and the new guidelines have been accepted widely for providing noncontroversial and adequate disclosure of foreign currency matters. The nine years since the adoption of FAS 52 have seen erratically fluctuating exchange rates, however, and the equity positions of many firms have responded accordingly. This article provides an investigation into the erratic equity positions and recommends actions that can be taken currently that may avoid future embarrassments for the profession.
Schweikart, James A. and Robert H. Sanborn. 1989. "The Erratic Equity Position May Be Caused by FAS 52: An Investigation of the Results of Unrecognized Gains and Losses from Foreign Currency Translations." E.C.R.S.B. 89-11. Robins School of Business White Paper Series. University of Richmond, Richmond, Virginia.