Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric. Points: 310 Criteria 1. Specify accounting exposure, operating exposure, and transaction exposure. Determine the main financial statement effects of each type of exposure if XYZ, Inc. expands as proposed. Weight: 15% 2. Determine two (2) types of hedges regarding foreign exchange risk, in general, and recommend the most advantageous risk mitigation strategy for XYZ, Inc. Provide support for your rationale. Note: Refer to Chapter 9 of the textbook for more information on corporate strategies regarding hedging foreign exchange risk. Weight: 15% 3. Determine the main accounting assumptions underlying each currently used method (e.g., current rate method and temporal method). Determine the fundamental differences in balance sheet exposure from the application of each method. Weight: 15% 4. Suggest the translation method that XYZ, Inc. Assignment 2: Foreign Currency Risk Unacceptable Meets Minimum Expectations Fair Proficient Exemplary Below 60% F 60-69% D 70-79% C 80-89% B 90-100% A Did not submit or incompletely specified accounting exposure, operating exposure, and transaction exposure. Did not submit or incompletely determined the main financial statement effects of each type of exposure if XYZ, Inc. expands as proposed. Did not submit or incompletely determined two (2) types of hedges regarding foreign exchange risk in general, did not submit or incompletely recommended the most advantageous risk mitigation strategy for XYZ, Inc. Did not submit or incompletely provided support for your rationale. Did not submit or incompletely determined the main accounting assumptions underlying each currently used method (e.g., current rate method and temporal method). Did not submit or incompletely determined the fundamental differences in balance sheet exposure from the application of each method. Insufficiently specified accounting exposure, operating exposure, and transaction exposure. Insufficiently determined the main financial statement effects of each type of exposure if XYZ, Inc. expands as proposed. Partially specified accounting exposure, operating exposure, and transaction exposure. Partially determined the main financial statement effects of each type of exposure if XYZ, Inc. expands as proposed. Satisfactorily specified accounting exposure, operating exposure, and transaction exposure. Satisfactorily determined the main financial statement effects of each type of exposure if XYZ, Inc. expands as proposed. Thoroughly specified accounting exposure, operating exposure, and transaction exposure. Thoroughly determined the main financial statement effects of each type of exposure if XYZ, Inc. expands as proposed. Insufficiently determined two (2) types of hedges regarding foreign exchange risk in general, insufficiently recommended the most advantageous risk mitigation strategy for XYZ, Inc. Insufficiently provided support for your rationale. Partially determined two (2) types of hedges regarding foreign exchange risk in general, partially recommended the most advantageous risk mitigation strategy for XYZ, Inc. Partially provided support for your rationale. Satisfactorily determined two (2) types of hedges regarding foreign exchange risk in general, satisfactorily recommended the most advantageous risk mitigation strategy for XYZ, Inc. Satisfactorily provided support for your rationale. Thoroughly determined two (2) types of hedges regarding foreign exchange risk in general, thoroughly recommended the most advantageous risk mitigation strategy for XYZ, Inc. Thoroughly provided support for your rationale. Insufficiently determined the main accounting assumptions underlying each currently used method (e.g., current rate method and temporal method). Insufficiently determined the fundamental differences in balance sheet exposure from the application of each method. Did not submit or incompletely suggested the Insufficiently suggested the translation Partially determined the main accounting assumptions underlying each currently used method (e.g., current rate method and temporal method). Partially determined the fundamental differences in balance sheet exposure from the application of each method. Partially suggested the translation Satisfactorily determined the main accounting assumptions underlying each currently used method (e.g., current rate method and temporal method). Satisfactorily determined the fundamental differences in balance sheet exposure from the application of each method. Satisfactorily suggested the translation Thoroughly determined the main accounting assumptions underlying each currently used method (e.g., current rate method and temporal method). Thoroughly determined the fundamental differences in balance sheet exposure from the application of each method. Thoroughly suggested the translation should use in order to minimize balance sheet exposure. Provide support for you choice. Weight: 10% 5. Compare the U.S. GAAP approach to the IFRS approach of translating foreign currency financial statements. Determine the main similarities and differences between the two (2) methods of translation. Assuming one (1) of the subsidiaries of XYZ, Inc. is located in a highly inflationary country, determine the appropriate translation method under FASB and provide the theoretical justification for your response. Weight: 20% 6. 2 references translation method that XYZ, Inc. should use in order to minimize balance sheet exposure. Did not submit or incompletely provided support for you choice. Did not submit or incompletely compared the U.S. GAAP approach to the IFRS approach of translating foreign currency financial statements. Did not submit or incompletely determined the main similarities and differences between the two (2) methods of translation. Did not submit or incompletely determined the appropriate translation method under FASB and did not submit or incompletely provided the theoretical justification for your response. method that XYZ, Inc. should use in order to minimize balance sheet exposure. Insufficiently provided support for you choice. method that XYZ, Inc. should use in order to minimize balance sheet exposure. Partially provided support for you choice. method that XYZ, Inc. should use in order to minimize balance sheet exposure. Satisfactorily provided support for you choice. method that XYZ, Inc. should use in order to minimize balance sheet exposure. Thoroughly provided support for you choice. Insufficiently compared the U.S. GAAP approach to the IFRS approach of translating foreign currency financial statements. Insufficiently determined the main similarities and differences between the two (2) methods of translation. Insufficiently determined the appropriate translation method under FASB and insufficiently provided the theoretical justification for your response. No references provided Does not meet the required number of references; all references poor quality choices. Satisfactorily compared the U.S. GAAP approach to the IFRS approach of translating foreign currency financial statements. Satisfactorily determined the main similarities and differences between the two (2) methods of translation. Satisfactorily determined the appropriate translation method under FASB and satisfactorily provided the theoretical justification for your response. Meets number of required references; all references high quality choices. Thoroughly compared the U.S. GAAP approach to the IFRS approach of translating foreign currency financial statements. Thoroughly determined the main similarities and differences between the two (2) methods of translation. Thoroughly determined the appropriate translation method under FASB and thoroughly provided the theoretical justification for your response. Exceeds number of required references; all references high quality choices. Serious and persistent errors in grammar, spelling, punctuation, or formatting. Lack of in-text citations and / or lack of reference section. Numerous errors in grammar, spelling, and punctuation. Partially compared the U.S. GAAP approach to the IFRS approach of translating foreign currency financial statements. Partially determined the main similarities and differences between the two (2) methods of translation. Partially determined the appropriate translation method under FASB and partially provided the theoretical justification for your response. Does not meet the required number of references; some references poor quality choices. Partially free of errors in grammar, spelling, punctuation, or formatting. In-text citations and references are provided, but they are only partially formatted correctly in SWS style. Mostly free of errors in grammar, spelling, punctuation, or formatting. Most in-text citations and references are provided, and they are generally formatted correctly in SWS style. Error free or almost error free grammar, spelling, punctuation, or formatting. In-text citations and references are error free or almost error free and consistently formatted correctly in SWS style. Serious errors in the integration of sources, such Sources are rarely integrated using effective Sources are partially integrated using effective Sources are mostly integrated using effective Sources are consistently integrated using effective Weight: 5% 7. Writing Mechanics, Grammar, and Formatting Weight: 5% 8. Appropriate use of SWS in-text citations and reference section (if applicable, might not apply to some 100 level courses such as ACC100) Weight: 5% 9. Information Literacy/Integration of Sources In-text citations and references are given, but not in SWS format. Weight: 5% as intentional or accidental plagiarism, or failure to use intext citations. techniques of quoting, paraphrasing, and summarizing. techniques of quoting, paraphrasing, and summarizing. techniques of quoting, paraphrasing, and summarizing. techniques of quoting, paraphrasing, and summarizing. 10. Clarity and Coherence of Writing Information is confusing to the reader and fails to include reasons and evidence that logically support ideas. Information is somewhat confusing with not enough reasons and evidence that logically support ideas. Information is partially clear with minimal reasons and evidence that logically support ideas. Information is mostly clear and generally supported with reasons and evidence that logically support ideas. Information is provided in a clear, coherent, and consistent manner with reasons and evidence that logically support ideas. Weight: 5% 
Purchase answer to see full attachment