VLKAY » Topics » Foreign Currency Risk

This excerpt taken from the VLKAY 20-F filed Dec 21, 2009.

Foreign currency risk

As a result of investment accounted for using the equity method, Synerject LLC, the Group’s balance sheet can be affected significantly by movements in the US$/A$ exchange rates.

The Group also has transactional currency exposures. Such exposure arises from sales or purchases by an operating entity in currencies other than the functional currency.

Approximately 17% of the Group’s sales are denominated in currencies other than the functional currency of the operating entity making the sale, whilst approximately 26% of costs are denominated in currencies other than the functional currency of the operating entity making the expenditure.

With respect to assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary. The Group does not hold foreign currency positions for trading purposes.

This excerpt taken from the VLKAY 8-K filed Nov 30, 2009.

Foreign Currency Risk

The translated values of revenue and expense from MMC’s international Risk and Insurance Services and Consulting operations are subject to fluctuations due to changes in currency exchange rates. The non-U.S. based revenue that is exposed to foreign exchange fluctuations is approximately 54% of total revenue. Note 17 details revenue by geographic area. We periodically use forward contracts and options to limit foreign currency exchange rate exposure on net income and cash flows for specific, clearly defined transactions arising in the ordinary course of business.

This excerpt taken from the VLKAY 6-K filed Nov 27, 2009.

FOREIGN CURRENCY RISK

The Company translates the results of its foreign operations into Canadian currency using rates approximating the average exchange rate for the year. The exchange rates may vary from time to time creating foreign currency risk. At September 30, 2009, the Company had certain obligations and assets denominated in U.S. dollars and there were no contracts in place to manage this exposure.

This excerpt taken from the VLKAY 6-K filed Nov 25, 2009.

Foreign Currency Risk


The Company operates on an international basis and, therefore, foreign exchange risk and foreign currency translation risk exposures arise from transactions denominated in a foreign currency. The Company’s current foreign exchange risk for its Australian, Mexican and United States operations arises primarily with respect to the Canadian dollar. The Company manages this risk by maintaining bank accounts in each operating currency to pay expenses as they arise. Receipts in foreign currencies are maintained in those currencies.




16


Kiska Metals Corporation

Notes to the Consolidated Financial Statements

September 30, 2009



11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)


Foreign Currency Risk (continued)


The Company operates in several countries, which gives rise to a risk that its expenditures may be adversely impacted by fluctuations in foreign exchange. The Company does not undertake currency hedging activities. The Company does not attempt to hedge the net investment and equity of integrated foreign operations.


This excerpt taken from the VLKAY 6-K filed Aug 27, 2009.

Foreign currency risk

As a result of investment accounted for using the equity method, Synerject LLC, the Group’s balance sheet can be affected significantly by movements in the US$/A$ exchange rates.

The Group also has transactional currency exposures. Such exposure arises from sales or purchases by an operating entity in currencies other than the functional currency.

Approximately 17% of the Group’s sales are denominated in currencies other than the functional currency of the operating entity making the sale, whilst approximately 26% of costs are denominated in currencies other than the functional currency of the operating entity making the expenditure.

With respect to assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary. The Group does not hold foreign currency positions for trading purposes.

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