These rules can be applied to ‌accounts to define how they are translated. Based on the conversion method to be used, the proper rules should be selected to translate local currency to reporting currency. .

The table highlights the rules usually used when translating using the Current and Integrated Method.

AccountsIf only the Current Method is usedIf the Integrated Method is used and possibly the Current Method
RevenuesIncome Statement - RevenuesIncome Statement - Revenues
ExpensesIncome Statement - ExpensesIncome Statement - Expenses
Monetary Assets and Liabilities, such as, Current Assets and Current LiabilitiesEnd Rate BSEnd Rate BS
Non-Monetary, such as, Fixed Assets Cost and Long-Term LiabilitiesEnd Rate BSNon-Monetary
Non-Monetary, such as, Fixed Assets Accumulated DepreciationEnd Rate BSNon-Monetary Credit
Equity (Credit accounts)HistoricalHistorical
Equity (Debit accounts)Historical DebitHistorical Debit
Cumulative Translation AccountCTA AccountCTA Account
Statistical Account, such as, Volume or HeadcountStatic RateStatic Rate

This table describes in detail the Conversion Rules that are available in the system. These rules can be modified, and additional rules can be added to meet unique business requirements.

Note: This table doesn't contain the Non-Monetary Credit rule since it's the same formula as Non-Monetary except that the sign is reversed.  

Income Statement – Revenues

Account: Applies to Revenue Income Statement Accounts

MovementFormula
Closing(Period Activity in source currency * Period Average Rate) + YTD Prior Period in translated currency.
CTA Variation
  • Current Method: Calculated as the difference between the YTD amount translated at Period End Rate and the amount translated at the Period Average Rate.

    The CTA is recorded in the CTA Current Period account on the Balance Sheet.
  • Integrated Method: Calculated as the difference between the YTD amount translated at Period End rate and the amount translated at the Period Average Rate.

    The CTA is recorded in the Translation Gain/Loss account in the Income Statement.

Income Statement – Expenses

Account: Applies to Expense Income Statement Accounts.

MovementFormula
Closing(Period Activity in source currency * Period Average Rate) + YTD Prior Period in translated currency
CTA Variation
  • Current Method: Calculated as the difference between the YTD amount translated at Period End Rate and the amount translated at the Period Average Rate.

    The CTA is recorded in the CTA Current Period account on the Balance Sheet.
  • Integrated Method: Calculated as the difference between the YTD amount translated at the Period End Rate and the amount translated at the Period Average Rate.

    The CTA is recorded in the Translation Gain/Loss account in the Income Statement.

End Rate BS

This applies to all Balance Sheet accounts except for Equity accounts, which are translated using the Historical conversion rule.

  • If the Integrated method isn't used, this rule can be used to translate Fixed Asset accounts. 
  • If the Integrated method is used, the Non-Monetary rule should be used for Fixed Assets.
MovementFormula
OpeningHistorical amount from the prior year. No calculation is performed since it is a copy from the prior year.
Opening – CTACalculated as the difference between the historical amount and the amount translated at Period End Rate. The CTA is stored in a specific Movement member for the given account.
Variation(Period Activity in source currency * Period Average Rate) + YTD Prior Period in translated currency.
Variation – CTACalculated as the difference between the amount translated at Period End Rate and the amount translated at Period Average Rate.
ClosingYTD amount translated at Period End Rate.

Historical

This applies to all Equity accounts that are Credit accounts.

MovementFormula
OpeningHistorical amount from the prior year. No calculation is performed since it's a copy from the prior year.
Opening – CTA
  • Current Method: Calculated as the difference between the historical amount and the amount translated at Period End Rate.

    Unlike the End Rate BS Conversion Rule, the CTA isn't stored in a specific Movement member for the given account. It is is stored in a general CTA account in the Equity section of the Balance Sheet.
  • Integrated Method: Calculated as the difference between the historical amount and the amount translated at Period End Rate.

    Unlike the End Rate BS Conversion Rule, the CTA isn't stored in a specific Movement member for the given account. It is stored in a general Translation Gain/Loss account in the Income Statement.
Variation(Period Activity in source currency * Period Average Rate) + YTD Prior Period in translated currency.
Variation – CTA
  • Current Method: Calculated as the difference between the amount translated at Period End Rate and the amount translated at the Period Average Rate.

    Unlike the End Rate BS Conversion Rule, the CTA isn't stored in a specific Movement member for the given account. It is stored in a general CTA account in the Equity section of the Balance Sheet.
  • Integrated Method: Calculated as the difference between the amount translated at Period End Rate and the amount translated at Period Average Rate.

    Unlike the End Rate BS Conversion Rule, the CTA isn't stored in a specific Movement member for the given account. It is stored in a general Translation Gain/Loss account in the Income Statement.
ClosingCalculated as the sum of Opening plus all Variations referred to as SumToMovement.

Historical Debit

This applies to all Equity accounts that are Debit accounts.

MovementFormula
OpeningHistorical amount from the prior year. No calculation is performed since it's a copy from the prior year.
Opening – CTA
  • Current Method: Calculated as the difference between the historical amount and the amount translated at Period End Rate.

    Unlike the End Rate BS Conversion Rule, the CTA isn't stored in a specific Movement member for the given account. It is stored in a general CTA account in the Equity section of the Balance Sheet.
  • Integrated Method: Calculated as the difference between the historical amount and the amount translated at Period End Rate.

    Unlike the End Rate BS Conversion Rule, the CTA isn't stored in a specific Movement member for the given account. It is stored in a general Translation Gain/Loss account in the Income Statement.
Variation(Period Activity in source currency * Period Average Rate) + YTD Prior Period in translated currency.
Variation – CTA
  • Current Method: Calculated as the difference between the amount translated at Period End Rate and the amount translated at the Period Average Rate.

    Unlike the End Rate BS Conversion Rule, the CTA isn't stored in a specific Movement member for the given account. It is stored in a general CTA account in the Equity section of the Balance Sheet.
  • Integrated Method: Calculated as the difference between the amount translated at Period End Rate and the amount translated at Period Average Rate.

    Unlike the End Rate BS Conversion Rule, the CTA isn't stored in a specific Movement member for the given account. It is stored in a general Translation Gain/Loss account in the Income Statement.
ClosingCalculated as the sum of Opening plus all Variations referred to as SumToMovement.

Non-Monetary

If the Integrated Method is used, this rule translates the Fixed Assets.

MovementFormula
OpeningHistorical amount from the prior year. No calculation is performed since it's a copy from the prior year.
Opening – CTA
  • Current Method: Calculated as the difference between the historical amount and the amount translated at Period End Rate. The CTA is stored in a specific Movement member for the given account.
  • Integrated Method: Calculated as the difference between the historical amount and the amount translated at Period End rate.

    Unlike the End Rate BS Conversion Rule, the CTA isn't stored in a specific Movement member for the given account. It's stored in a general Translation Gain/Loss account in the Income Statement.
Variation(Period Activity in source currency * Period Average Rate) + YTD Prior Period in translated currency.
Variation – CTA
  • Current Method: Calculated as the difference between the amount translated at Period End Rate and the amount translated at the Period Average Rate.
  • Integrated Method: Calculated as the difference between the amount translated at Period End Rate and the amount translated at Period Average Rate.

    Unlike the End Rate BS Conversion Rule, the CTA isn't stored in a specific Movement member for the given account. It is stored in a general Translation Gain/Loss account in the Income Statement.
Closing
  • Current Method: YTD amount translated at Period End Rate.
  • Integrated Method: Calculated as the sum of Opening plus all Variations called SumToMovement.

CTA Account

This rule is needed to copy the Opening balance to the Closing member and should be set on the CTA Open account.

MovementFormula
Closing

Current Method: Copies the Opening balance to the Closing Balance.

The rule also puts the negative of the opening balance into CTA current because CTA is a calculation that goes back to the start of time. This is needed to show the current year movement in the CTA current account.

Static Rate

This applies to statistical accounts such as Volume or Headcount where the translation rate is 1. This conversion rule essentially copies the amount from the local currency to the reporting currency.

MovementFormula
ClosingCurrent and Integrated Method: YTD amount translated at Static Rate of 1.