The initial setup of Conversion Rules involves defining and configuring the rules.

EndRate BS rule

No changes are usually required. This rule is usually used for all working capital accounts, such as Current Assets and Current Liabilities. 

Historical rule

Typically, the Target Account for the CTA calculation needs to be modified to reflect the customer's chart of accounts. This rule is typically used for equity accounts such as Common Stock and Preferred Stock. 

  • Current Method
    • CTA_Opening: Cumulative translation account in the Balance Sheet.
    • CTA_Flow: Cumulative translation account current in the Balance Sheet.
  • Integrated Method
    • CTA_Opening: Translation Gain/Loss account in the Income Statement.
    • CTA_Flow: Translation Gain/Loss account in the Income Statement.

Historical Debit Rule

The Target Account for the CTA calculation needs to be modified to reflect the customer's chart of accounts. This rule is often used for the Dividends accounts, which are usually set to Debit. All other Equity accounts are set to Credit. 

  • Current Method 
    • CTA_Opening: Cumulative translation account in the Balance Sheet.
    • CTA_Flow: Cumulative translation account current in the Balance Sheet
  • Integrated Method 
    • CTA_Opening: Translation Gain/Loss account in the Income Statement.
    • CTA_Flow: Translation Gain/Loss account in the Income Statement

Non-Monetary rule

The Current Method rules typically don't require any updates, but the Integrated Method section requires the same changes as Historical and Historical Debit. This rule is typically used for Long-Term Assets accounts such as Fixed Assets. 

  • Integrated Method 
    • CTA_Opening: Translation Gain/Loss account in the Income Statement. 
    • CTA_Flow: Translation Gain/Loss account in the Income Statement.

Non-Monetary Credit rule

The Current Method rules typically don't require any updates, but the Integrated Method section requires the same changes as Historical and Historical Debit. This rule is similar to Non-Monetary and is used for accounts that are set to Credit, such as Accumulated Depreciation or Long Term Liabilities. 

  • Integrated Method 
    • CTA_Opening: Translation Gain/Loss account in the Income Statement & Current Earnings FX Gain (Loss) in the Balance Sheet. 
    • CTA_Flow: Translation Gain/Loss account in the Income Statement & Current Earnings FX Gain (Loss).

Income Statement Revenues rule

The target account for the CTA_Flow needs to be updated to reflect the customer's chart of accounts. This rule is typically used for all revenue accounts. 

  • Current Method 
    • CTA_Flow: Cumulative translation account current in the Balance Sheet.
  • Integrated Method 
    • CTA_Flow: Translation Gain/Loss account in the Income Statement & Current Earnings FX Gain (Loss).

Income Statement Expenses rule

The target account for the CTA_Flow needs to be updated to reflect the customer's chart of accounts. This rule is typically used for all expense accounts. 

  • Current Method 
    • CTA_Flow: Cumulative translation account current in the Balance Sheet.
  • Integrated Method 
    • CTA_Flow: Translation Gain/Loss account in the Income Statement & Current Earnings FX Gain (Loss).

CTA Account

No changes are usually required. 

CTA Account Group

No changes are usually required.