1 unchanged sentence
As a result of our operating, investing and financing activities, we are exposed to market risks such as interest rate risk and foreign currency exchange rate risk.
−Removed: We are also exposed to credit
−Removed: risk as a result of our normal business activities.
+Added: We are also exposed to credit risk as a result of our normal business activities.
Foreign Currency Exchange Risk
Our consolidated financial statements are presented in U.S.
−Removed: dollars, which is our reporting currency, while the functional currency of our subsidiaries in the PRC is RMB, and the functional
−Removed: currency of our subsidiary in South Korea is the South Korean Won, or the KRW.
+Added: dollars, which is our reporting currency, while the functional currency of our subsidiaries in mainland China is RMB, and the functional currency of our subsidiary in Korea is the Korean Won, or the KRW.
Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transactions.
−Removed: Any difference between the
−Removed: initially recorded amount and the settlement amount is recorded as a gain or loss on foreign currency transaction in our consolidated statements of operations.
−Removed: Monetary assets and liabilities denominated in a foreign currency are translated
−Removed: at the functional currency rate of exchange as of the date of a consolidated balance sheet.
+Added: Any difference between the initially recorded amount and the settlement amount is recorded as a gain or loss on foreign currency transaction in our consolidated statements of comprehensive income (loss).
+Added: Monetary assets and liabilities denominated in a foreign currency are translated at the functional currency rate of exchange as of the date of a consolidated balance sheet.
Any difference is recorded as a gain or loss on foreign currency translation in the appropriate consolidated statement of operations.
−Removed: In accordance
−Removed: with ASC Topic 830, Foreign Currency Matters , we translate the assets and liabilities into U.S.
−Removed: dollars from RMB using the rate of exchange prevailing at the applicable balance sheet date and the
−Removed: consolidated statements of operations and cash flows are translated at an average rate during the reporting period.
−Removed: Adjustments resulting from the translation are recorded in stockholders’ equity as part of accumulated other comprehensive
−Removed: The majority of our business is conducted through our ACM Shanghai subsidiary that manufactures and sells our products in various global markets, and we also have operations in South Korea, the
−Removed: Taiwan Region, the United States, and other countries.
+Added: In accordance with ASC Topic 830, Foreign Currency Matters , we translate the assets and liabilities into U.S.
+Added: dollars from RMB using the rate of exchange prevailing at the applicable balance sheet date and the consolidated statements of comprehensive income (loss) and cash flows are translated at an average rate during the reporting period.
+Added: Adjustments resulting from the translation are recorded in stockholders’ equity as part of accumulated other comprehensive income.
+Added: The majority of our business is conducted through our ACM Shanghai subsidiary that manufactures and sells our products in various global markets, and we also have operations in Korea, the Taiwan Region, the United States, and other countries.
We sell the majority of our products in transactions denominated in U.S.
−Removed: however, we purchase raw materials, pay wages, and make payments to our supply chain in foreign
−Removed: currencies, primarily RMB, and also the KRW.
+Added: however, we purchase raw materials, pay wages, and make payments to our supply chain in foreign currencies, primarily RMB, and also the KRW.
As a result, our earnings, cash flows and cash balances are exposed to fluctuations in foreign currency exchange rates.
−Removed: For example, because of our significant manufacturing operations in the PRC,
−Removed: a weakening RMB is advantageous and a strengthening RMB is disadvantageous to our financial results.
−Removed: At this time, we have not established a formal hedging policy to attempt to reduce the inherent risks of potential currency fluctuations on
−Removed: our global operations.
−Removed: We report the impact of foreign exchange fluctuations in the other income (expense) line item of our Consolidated Statements of Operations and Comprehensive Income statements.
−Removed: For 2022, 2021 and 2020, the effect of
−Removed: fluctuations of foreign currencies contributed realized gains (losses) of $1.7 million, ($0.6 million) and ($4.4 million), respectively.
−Removed: The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations.
−Removed: To date these restrictions have not had a material
−Removed: impact on us because we have not engaged in any significant transactions that are subject to the restrictions.
−Removed: Interest Rate Risk
−Removed: As of December 31, 2022, 2021 and 2020, the balance of our short term bank borrowings (see note 9 in the Notes to Consolidated Financial
−Removed: Statements included herein under “Item 8.
−Removed: Financial Statements and Supplementary Data.”), mature at various dates within the following year and d o not expose us to
+Added: For example, because of our significant manufacturing operations in mainland China, a weakening RMB is advantageous and a strengthening RMB is disadvantageous to our financial results.
+Added: At this time, we have not established a formal hedging
+Added: policy to attempt to reduce the inherent risks of potential currency fluctuations on our global operations.
+Added: We report the impact of foreign exchange fluctuations in the other income (expense) line item of our Consolidated Statements of Comprehensive Income statements.
+Added: For 2023, 2022, and 2021, the effect of fluctuations of foreign currencies contributed realized gains (losses) of $(2.0) million, 1.7 million, and ($0.6 million), respectively.
+Added: The mainland China government imposes significant exchange restrictions on fund transfers out of mainland China that are not related to business operations.
+Added: To date these restrictions have not had a material impact on us because we have not engaged in any significant transactions that are subject to the restrictions.
Interest Rate Risk
+Added: As of December 31, 2023, 2022, and 2021, the balance of our short term bank borrowings (see note 9 in the Notes to Consolidated Financial Statements included herein under “Item 8.
+Added: Financial Statements and Supplementary Data.”), mature at various dates within the following year and do not expose us to interest rate risk.
As of December 31, 2023, the balance of our long-term borrowings (see note 12 in the Notes to Consolidated Financial Statements included herein under “Item 8.
−Removed: Financial Statements and Supplementary Data.”) carries a
−Removed: fixed interest rated and we may be exposed to fair value interest rate risk.
+Added: Financial Statements and Supplementary Data.”) carries a fixed interest rated and we may be exposed to fair value interest rate risk.
We have implemented policies and procedures to measure, manage, monitor and report risk exposures, which are reviewed regularly by management and the board of directors.
−Removed: We identify risk
−Removed: exposures and monitor and manage such risks on an ongoing basis.
+Added: We identify risk exposures and monitor and manage such risks on an ongoing basis.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.