Topics related to standalone valuation including fundamental valuation, relative valuation, sum-of-parts and other techniques.
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I understand that if, say, a US company with functional currency of USD and issues debt denominated in a foreign currency then each quarter the company will need to adjust the debt with foreign currency exchange gains (losses) on the balance sheet and income statement. Now, I am curious if the same company issues equity denominated in a foreign currency, then does the company still need to make the same foreign currency exchange adjustment to the issued equity with currency exchange gains (losses)?
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Our guess, without researching accounting standards is no, since book value isn't marked to market.
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