Subsidiary Context for a Financial Statement
- The currency amounts are displayed in the base currency of the selected subsidiary.
Subsidiary-Specific Financial Layouts
Cumulative Translation Adjustment (CTA) Overview
The CTA is used on the consolidated balance sheet to make it balance. This account is necessary because consolidated exchange rate types of the accounts on the balance sheet may differ. The result is different consolidated exchange rates, which cause an imbalance.
■ Current rate – Applies to most asset and liability accounts
■ Average rate – Applies to all income statement accounts, such as income and expense.
■ Historical rate – Applies to accounts in the capital section of the balance sheet including equity and dividends.
CTA Account Record
Example Use of CTA in Balance Sheet
