Translation risk, also known as accounting risk, conversion risk and book risk, refers to the possibility that some foreign exchange funds in an enterprise's balance sheet will change due to changes in foreign exchange rates. It is the book profit and loss, not the actual profit and loss at the time of actual delivery, but it will affect the reporting results of enterprise assets and liabilities. For example, an enterprise imported equipment of US$ 300,000, and the exchange rate at that time was US$ 65,438+000 =890 yuan RMB, which was converted into RMB 2.67 million and recorded in this liability. When the amount of foreign currency business account is converted at the end of the accounting period, the exchange rate becomes USD 65,438 +000 =830 yuan RMB. At this time, the foreign exchange capital account liabilities on the balance sheet are 2.49 million yuan. Among them, RMB 6.5438+RMB 8,000 becomes the translation risk caused by exchange rate changes. & lt/FONT & gt；