Klassificering av utländska dotterföretag

Sammanfattning: Background: Companies often invest in foreign subsidiaries and that gives rise to translation exposure. Translation exposure arises with the consolidation of the foreign subsidiary and depends on the rate of exchange that are used for translation of the foreign subsidiary. In time several different methods of translation and recommendations has been developed. Companies listed on OM Stockholmsbörsen shall follow RR8. According to RR8 a classification of foreign subsidiaries as indipendent or integral to the parent company determines which method of translation that should be used. Therefore it is important that the classification is made correct. Purpose: The purpose of this essay is to examen how the classification of foreign subsidiaries as independent or integral to the parent company is done, what criteria that are being used and if RR8 has had any influence on the classification. This should answer the question of whether RR8 is being observed or if there is a need of further explanations within the field. Demarcations: Only companies listed on OM Stockholmsbörsen are included. Branches are not included and not special recommendations for foreign subsidiaries in countries with high rate of inflation. Accomplishments: A questionnaire to 75 companies. Before that a small study of ten annual reports was carried out. Results: RR8 is not being observed and there is a big spread in how the indicators in RR8 is being used. The companies do not consider the concequences of the classification. Only a few companies have reclassified their foregn subsidiaries since RR8 came into force. The companies do not seem to give any importance to the classification and therefore the effectiveness of RR8 can be questioned.