Currency Translator translates most balance sheet accounts at the year-end exchange rate. It translates equity accounts using the equity historical exchange rate. In forecast periods, it does not translate retained earnings, but translates the weighted average of the items constituting retained earnings. Because the use of different exchange rates causes an imbalance, Currency Translator adjusts the data.
If you do not use the default exchange rate assignments on the Exchange Rates tab (see Setting Exchange Rates for Currency Translations), Currency Translator uses this formula to calculate CTA:
Currency Translator enters the value in the currency translation adjustment account, in the equity section of the balance sheet. Period-to-period changes appear on the cash and funds flow reports.
The account does not have an analysis trail because the data is not available after translation. |