7.8.4.4 Translation (Non-Currency-Based Processes)

If the process is Non-Currency-based (for example, the ALM Deterministic Process specifies a functional dimension of Product or Product/Organizational Unit), the Cash Flow Engine compares the local currency (on the instrument) with the reporting currency (specified in the Process Rule) to determine whether balance and payment amounts in the instrument need to be translated. If the instrument is already denominated in the Reporting Currency, no translation is necessary. If it is in a different currency, the process must translate all amounts before processing Cash Flows. It translates those values from the Local Currency to the Reporting Currency by dividing by the Exchange Rate in effect at the As-of-Date.

Note:

In currency-based processes (where the ALM Deterministic Process Rule specifies a Functional Dimension of Product/Currency or Product/Organizational Unit/Currency), no translation is required because the instrument is processed in its local currency and all results are accumulated in the Local Currency.

The following is a list of all instrument values requiring translation for Non-Currency-based Processing:

• Original Par Balance
• Current Par Balance (from instrument table or Transaction Strategy)
• Original Payment Amount
• Current Payment Amount
• Negative Amortization Amount
• Current Deferred Balance (from Instrument table or Transaction Strategy)