Opinion ID: 211643
Heading Depth: 2
Heading Rank: 3

Heading: Translation Losses

Text: 25 Finally, we address Hynix's contention that Commerce should have offset its foreign currency translation losses 14 with the revaluation of its fixed assets. In 1997, the Korean won steeply declined in value, necessitating the revaluation of Hynix's fixed assets. It is undisputed that this revaluation was conducted in accordance with the Asset Revaluation Law of Korea and Korean GAAP. 26 According to Hynix, its translation losses were incurred on the very loans used to purchase the fixed assets that were revalued, and that the same phenomenon, the devaluation of the won, caused both. Hynix contends, therefore, that it is consistent with the principle of matching to offset the translation losses with the increase in value of its fixed assets. Hynix also complains that Commerce's method actually double-counts the effects of the devaluation of the won because depreciation costs grew, as the assets increased in value, and translation costs increased. 27 Neither Commerce nor the court accepted Hynix's arguments. In fact, Hynix has attempted to make these same arguments in the past and failed. See Micron Tech., 893 F.Supp. at 33. As noted by Commerce in the unpublished decision memorandum accompanying its Final Results, revaluation of the fixed assets (i.e., non-monetary assets) does not represent income during the year. In economic terms, the company is in the same position holding the same assets. We accept this characterization both because it is correct and because we owe Commerce deference when it makes this type of technical decision. See Am. Silicon, 261 F.3d at 1380-81. It is obvious, therefore, that Hynix's arguments are without merit. That the revaluation does not represent income is enough to show that offsetting is inappropriate—one cannot offset a real loss 15 with an imagined gain. Hynix itself did not treat the translation losses and revaluation in its own books as it would have Commerce treat them. See 19 U.S.C. § 1677b(f) (2000). The refusal to offset Hynix's foreign currency translation losses with the revaluation of its fixed assets is affirmed.