Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 15 AUGUST 2016

Foreign Exchange Issues In Damage Quantification: Part I – Basic Concepts

Matson Driscoll & Damico
Explore more from Matson Driscoll & Damico

It is not uncommon for litigation to involve the quantification of financial remedies across multiple political and monetary boundaries.

CanadaAccounting and Audit
Ephraim Stulberg
Ephraim Stulberg
Author LinkedIn connections

International trade is an increasingly important part of the Canadian economy, as this picture clearly shows:

As a result, it is not uncommon for litigation to involve the quantification of financial remedies across multiple political and monetary boundaries. How does one take foreign exchange rates – and more specifically, fluctuations in foreign exchange rates between the date of initial wrongdoing and the trial date – into account? In the next two posts, I will consider the following five examples, through which I hope to illustrate some basic concepts:

  1. A US-based company, Manifest Destiny Inc. ("MDI") has a contract to sell $1M (USD) of specialized goods to a Canadian firm. The Canadian firm breaches the contract, and MDI is unable to make the sale (or to mitigate its loss). The exchange rate at the time of breach was $1 USD = $1.25 CDN; it is now $1 USD = $1 CDN.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

CSA Publishes Final Amendments To Align Non-GAAP Financial Measures Disclosure Requirements With IFRS 18

The Canadian Securities Administrators have finalized amendments to National Instrument 52-112 to address the introduction of IFRS 18, which introduces management-defined performance measures requiring disclosure in financial statement notes. These amendments ensure that measures historically treated as non-GAAP financial measures remain subject to regulatory disclosure requirements when disclosed outside financial statements...
CanadaAccounting and Audit
Fogler, Rubinoff LLP
Fogler, Rubinoff LLP
Article

Canada To Adopt International Financial Reporting Standards: An Update

Earlier this year, the Canadian Accounting Standards Board confirmed January 1, 2011 as the date that International Financial Reporting Standards (IFRS) will replace Canadian generally accepted accounting principles (Canadian GAAP) for all Canadian publicly traded companies as well as for non-listed financial institutions, securities dealers and many cooperative enterprises that qualify as “publicly accountable enterprises.”
CanadaAccounting and Audit
Torys
Torys
Article

CSA Finalizes Amendments To Non-GAAP And Other Financial Measures Disclosure Requirements Ahead Of IFRS 18

The Canadian Securities Administrators have finalized amendments to National Instrument 52-112 governing non-GAAP financial measures disclosure, primarily in response to the adoption of IFRS 18. These changes ensure that management-defined performance measures remain subject to disclosure requirements when presented outside financial statements, while introducing new prominence requirements for additional subtotals and allowing incorporation by reference to avoid duplicative disclosure.
CanadaAccounting and Audit
Bennett Jones LLP
Bennett Jones LLP