The Financial Accounting Standards Board (FASB) is a private, not-for-profit organization designated by the Securities and Exchange Commission. Its focus is to develop generally accepted accounting principles for companies within the United States to ensure the public interest. There are many standards within FASB for various purposes. Standard FASB 52 minds the international finance sector and exchange rates. Previously, FASB 52 was known as FASB 8. In December, 1981 it was modified, creating this standard easily accessible to interpret in order to implement it.

Translation Exposure means the risk that a company's equities, assets, liabilities or income will change in value as a result of exchange rate changes. This occurs when a firm denominates a portion of its equities, assets, liabilities or income in a foreign currency. It is also known as accounting exposure. Accountants use various methods to insulate firms from these types of risks, such as consolidation techniques for the firm's financial statements and the use of the most effective cost accounting evaluation procedures.

On the most important US accounting principle is FASB 52 which is refers to the translation of income statement and balance sheet of between subsidiaries and the parent company of multinational national companies. Prior to the development to FASB 52, FASB 8 was use, but it has many problems in the translation of foreign currency and the exchange rate use in the translation process.

According to Investopedia.com, Mark-to-Market accounting “measures the fair value of accounts that can change over time, such as assets and liabilities. It records the price or value of a security, portfolio, or account to reflect its current market value, rather than its book value.” Mark to Market accounting was originally put into practice to prevent company’s liabilities from being hidden. FASB was worried that businesses were maintaining their bad assets on their books, rather than writing them down to their true value.

Accounting exposure, also called translation exposure, results from the need to restate foreign subsidiaries’ financial statements, which usually stated in foreign currency, into the parent’s reporting currency when preparing the consolidated financial statements. Restating financial statements may lead to changes in the parent’s net worth or net income.