ACER INCORPORATED: CORE MANAGEMENT PRINCIPLES

Abstract

The chief financial officer of Acer Incorporated has to decide how to manage the higher level of complexity of the company`s exchange risk after their restructuring. This must be done in a way that is consistent with Acer`s core principles, one of which is to \"find simple effective solutions to unavoidable business risks.\" The case addresses the technical issues of exposure measurement and hedging, the challenge of hedging expected but not contracted, future foreign currency revenues, and IFRS hedge accounting requirements.