14.4.1 Generation of Accumulated Translation Product <Leaf> Member results

The Standard Cash Flow Process generates results for the accumulated translation amount financial element for all modeling buckets and all product members assigned to the Current Rate method. The Current Rate method is one of three accounting methods available in the application for the treatment of currency gain/loss amounts.

The Accumulated Translation Account is a special auto-balancing member, assigned by the user within ALM Application Preferences. The balance for this product <leaf> member holds the aggregated accumulated translation amounts resulting from all product leaf members included in the process. The Accumulated Translation product must have an account type of equity.

The following steps are performed first because other auto-balancing processes rely on these results. The auto-balancing process generates the financial element rows, as follows:

1. Generate an aggregate value for the accumulated translation amount financial element for every modeling bucket and scenario. When aggregating data from product members, include results only from the following account types, with the sign as defined in the parentheses:
   • Earning Assets (+)
   • Other Assets (+)
   • Interest Bearing Liabilities (-)
   • Other Liabilities (-)
   • Equity (-)
2. Select the Current Balance for the Accumulated Translation Account from Result Master for the start date index equal to 0. Note that this data may not exist.
3. Transform the accumulated data into beginning, ending, and average financial element data for each modeling bucket and scenario.
   • The aggregated accumulated translation financial element will equal the ending balance for each bucket and scenario.
   • The beginning balance in all buckets beyond the first bucket will equal the ending balance in the previous bucket.
   • The current balance selected from Result Master will serve as the beginning balance in bucket 1 for all scenarios. If no data exists in Result Master, the beginning balance is zero.
   • The average balance will equal the beginning balance from the same bucket.
4. Since the Accumulated Translation Account is an Equity account and Equity accounts do not generate gap results, no data needs to be generated for Gap financial elements.
5. Within the Result Master, the CUR_PAR_BAL and CUR_NET_PAR_BAL need to be generated for all scenarios and start dates. The CUR_PAR_BAL and CUR_NET_PAR_BAL will also be the same for all start dates/scenarios. To determine the proper balance amount for a start date, follow the subsequent logic:
   • If the Start Date is equal to a bucket end date, the Ending Balance for that bucket is used.
   • If the Start Date is equal to a bucket start date or falls within the modeling bucket, the Beginning Balance is used.