Difference in conversion of currency (CTA) to HFM

Hi all

I am sure, all those of you who has implemented HFM knows this CTA. I don't know how it is calculated, just curious, whereby I count this CTA normally calculated? And just to be sure, HFM does not have a decent calc or pre-built for the CTA, right? So, we have to develop our own.

About the CTA on my application, I noticed there are only several accounts assigned or requested by the user to have a vision of the CTA. They are capital, part of the non-controlling interest. But when I read in a book of HFM, there might be a few other accounts that may have an impact of the CTA. My first question is, how do I know which account is affected by CTA? is that all accounts that use historical rate only?

Always connected to the CTA, to manage this, I created a named member of conversion in custom dimension. I thought that each account can have an impact for this DEC so I put it in the custom dimension. How are they managing guys based on your experience? You pull away in a single translation adjustment account or create you a custom dimension just like mine?

Thank you
-Anna

Dear Anna,
I think you mean by CTA balancing figure you calculate due to the use of different exchange rates to assess the different accounts. I call it 'conversion differences' in the discussion below:

Normally, each statement of income translates into average rate and balance sheet accounts are generally reflected using end of period rate. However, especially the capital such as the capital and reserves accounts translated using historical rates. The differences in the calculations which are due to different rates for the translation of capital and reserve accounts, no balancing would translate to a balance sheet. However, these differences are displayed in a special account "translation reserves" which preserves the balance. This account is usually located between the reserve accounts.

All discussion above refers to the translation of the end of the balances of balance sheet accounts. However, you can use the additional analysis to your balance sheet accounts, in terms of movements. In this case the end of almost every balance sheet account balance is composite - i.e. the sum of the opening balance and movements. If you need support this additional detail of the analysis of balance sheet account, you will normally use a custom size for this analysis. In this case, in addition to differences in conversion referred to above, you also need to consider differences resulting from the conversion of the opening balances using end of previous year rates and movements using growth rates. In this case, you will need to provide a special translation movement within the analysis of the movement of the account in your custom dimension. Debts and liabilities of all the differences will be posted in the relevant movements so that the calculated balance keeps the value of the translation with balance end of era.

All the conversion differences must be calculated by the rules and posted to the right translation difference accounts or movements.

Tags: Business Intelligence

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