Valutakursförlust

Valutakursförlust, which translates to "currency loss" in English, refers to a decrease in the value of an asset or a liability when denominated in a different currency. This typically occurs in international financial transactions where there is a difference between the value of the currency at the time of the transaction and its value at a later settlement date.

For example, if a Swedish company has an invoice to pay in US dollars, and the Swedish krona weakens against the US dollar between the time the invoice is issued and when it is paid, the company will experience a valutakursförlust. This is because it will require more Swedish kronor to purchase the same amount of US dollars. Conversely, if the Swedish krona strengthens, the company would experience a valutakursvinst (currency gain).

Valutakursförluster can impact businesses involved in import and export, as well as individuals who hold investments in foreign currencies or have debts denominated in a foreign currency. Companies often use hedging strategies, such as forward contracts or currency options, to mitigate the risk of adverse currency movements and potential valutakursförluster. The impact of these losses or gains can significantly affect a company's profitability and financial reporting.