What it is
When a foreign subsidiary’s functional currency is not the dollar, its statements are translated for consolidation. Assets and liabilities use the period-end rate, income and expenses use the average rate and equity uses historical rates. The balancing amount is the cumulative translation adjustment, reported in other comprehensive income.
This worksheet takes the local trial balance, applies the rate basis you pick for each account and produces the translated trial balance. A proof then recomputes the period adjustment from opening net assets, net income and equity movements, so a wrong rate or balance shows as a difference before the numbers reach the consolidation.
When to use it
- At each close for a subsidiary or branch with a non-USD functional currency.
- When setting up consolidation for a newly acquired foreign operation.
- When auditors ask for support behind the translation adjustment in other comprehensive income.
What’s inside
- Rates tab with period dates and the current, average and opening rates
- Translation tab: 40 accounts with type, rate basis, local balance and translated balance
- Cumulative translation adjustment with opening balance and period movement
- Independent proof from net assets, income and equity movements
- Translated statement totals and a balance check
Standard cited
This template follows ASC 830. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Which rates apply under the current rate method?
The period-end rate for assets and liabilities, the average rate for income and expenses, and historical rates for equity. Items such as dividends use the rate on the transaction date.
Where does the translation adjustment go?
Into other comprehensive income and the accumulated other comprehensive income component of equity. It is not recorded in earnings.
What if the functional currency is the dollar?
Then the books are remeasured, not translated, and remeasurement gains and losses go to earnings. Document the functional currency determination first.
Why does the proof matter?
The balancing amount absorbs any error in a rate or a balance. The proof builds the same adjustment from opening net assets and movements, so a difference exposes the error.
Related templates
- Consolidating Worksheet, Multiple Entities
- Cash Flow Hedge AOCI Roll-forward (ASC 815)
- Consolidation and Elimination Workbook (ASC 810)
- Equity Rollforward Template (Corporation and LLC)
Last updated 11/05/2026. All free templates.