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Cumulative Translation Adjustment Calculator (ASC 830-30)

What do these figures come to once the work is shown?

Translation adjustment for the period from opening net assets, income at the average rate and dividends at their rate.

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  • Nothing stored or sent
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Your figures
Example figuresIllustrative only. Type over them with your own.
Translation adjustment for the period (OCI)
-$272,000
Recorded in other comprehensive income
On opening net assets
-$250,000
On net income
-$24,000
Drawn to one scale
Translation adjustment for the period (OCI)-$272,000
On opening net assets-$250,000
On net income-$24,000
On dividends$2,000
Closing CTA balance-$152,000
Closing net assets in USD$5,880,000
All results
MeasureResult
Translation adjustment for the period (OCI)-$272,000
On opening net assets-$250,000
On net income-$24,000
On dividends$2,000
Closing CTA balance-$152,000
Closing net assets in USD$5,880,000
How this was worked out
Work shownrecomputed as you type
On opening net assets = opening net assets x (closing - opening rate)
On income = net income x (closing - average rate)
On dividends = -dividends x (closing - dividend rate)

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • On opening net assets = opening net assets x (closing - opening rate)
  • On income = net income x (closing - average rate)
  • On dividends = -dividends x (closing - dividend rate)

How it works

Under ASC 830-30, assets and liabilities of a foreign entity are translated at the current rate, income statement items at the rates on the transaction dates (an average rate is a practical approximation), and equity at historical rates. The difference is the translation adjustment, reported in OCI and accumulated in equity.

The accumulated amount is released to net income on sale or substantial liquidation of the foreign entity.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Is this remeasurement?

No. Remeasurement into the functional currency goes through earnings. Translation from functional to reporting currency goes to OCI.

Is the NCI share separated?

Yes. Attribute the NCI share of the adjustment to NCI.

What about highly inflationary economies?

Those entities remeasure as if the reporting currency were functional, so there is no translation adjustment.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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