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Foreign Currency Fluctuations How does Walt Disney account for foreign currency fluctuations? How much did the...

Foreign Currency Fluctuations How does Walt Disney account for foreign currency fluctuations? How much did the Walt Disney Company gain or lose in 2013 because of foreign currency fluctuations? Explain the effect that a drop in value of the US dollar would have on the financial statements of Walt Disney Corporation. Cite specific examples that relate to Walt Disney’s financial statements.

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Disney said in its statement in 2013-14 that it had faced loss due to changes in the economic conditions of the U.S. the reason is lacking of tourism from U.S into hotels , restaurant, parks etc

Secondly, a mere change in the foreign exchange rate also increase costs of labour , decrease in demand of its products . Thus , in this way the foreign currency fluctuations affect its corporation

Walt Disney just ensure that the sales for its products and services will not be reduced at some extent . He for this purpose may offer an future exchange rate for the transactions.

A drop in the price of US dollar may lead to decrease in sales of Disney corporation and also increase its direct costs of labour . In short , it will make its financial statements a little bit weak by lowering it's profits .

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