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Accounting Risk
Definition
This is the risk that an investor takes on which is associated with the various accounting standards in different countries. There may be uncertainty regarding how to record certain transactions in different accounting environments.
Using the term Accounting Risk :
when evaluating international acquisitions, accounting risk is one of the important aspects to consider.
Pay Special Attention To :
accounting risk is a very important consideration when evaluating investments in foreign accounting jurisdictions and is also critical when analyzing multi-national corporations.
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Related terms
currency risk , interest rate risk , investment risk
