ANALYSIS OF CURRENCY RISKS IN INTERNATIONAL HOLDING STRUCTURES IN CONDITIONS OF INSTABILITY

EDN: WLDKGS

DOI: https://doi.org/10.65891/2949-1983-2026-22-1-25-29

Authors:

KRUGLOV Vyacheslav Viktorovich, LIFANOV Nikita Vladimirovich

Abstract.

The purpose of the study is to systematize and critically review the theoretical foundations of accounting for currency risks in the consolidation of reporting of international holdings in the era of structural currency volatility. Based on the deconstruction of the concept of "multidirectional currency dynamics" and scenario analysis, systemic limitations of classical translation methods under IFRS (IAS 21) are identified, leading to the generation of "accounting noise" and significant distortions of key consolidated financial statement (CFS) indicators. The cascading nature of these distortions is theoretically substantiated, affecting the assessment of organic growth, profitability, capital structure and financial stability. In response to the identified challenges, a conceptual basis for building an internal financial analytics system is proposed, based on the principles of multi-level reporting (including constant currency), operationally-oriented hedging of consolidation risk, and adaptation to specific institutional conditions relevant to Russian companies. The results of the work translate the problem from a technical plane into a strategic one, defining the management of the currency transparency of CFS as a key competence of top management.

Keywords:

currency risks, international holdings, consolidation of reporting, IFRS (IAS 21), currency volatility, accounting noise, current rate method, constant currency, organic growth, translation effect

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