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Overview
Different entities can operate in different currencies, but for consolidation purposes, it is
critical to standardize to a common currency. During consolidation processing,
Financial Consolidation Hub automatically translates any entity's balances from the
child's currency to the parent's currency if the two currencies are different.
Translation is applied according to the rules specified in a translation method. You can
define as many translation methods as needed due to differences in translation practices
across different industries, countries, or ownership relationships.
Translation Method
A translation method is a collection of settings that determines the currency processing
that is applied to a parent/child relationship during consolidation.
Translation methods include settings for the following:
•
Equity translation method
•
Income statement translation method
•
Translation adjustment account
•
Ending rate type
•
Average rate type
Note:
Financial Consolidation Hub translation methods address both
translation and remeasurement in accordance with FAS 52 and IAS 21.
Setting Up Translation
12
Setting Up Translation 12-1
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