This process automatically adjusts for the Financial Accounting Standards Board 52 (FASB 52) requirement after the Ledger has been consolidated. Adjustments occur to:
Throughout the year, asset and liability accounts are posted to the ledger based on the End currency translation method. As the currency rates fluctuate, the totals for the balance sheet accounts should also fluctuate. The system creates a new ledger entry to the balance sheet accounts to manage these fluctuations. The system also creates a new ledger entry to the CTA account to ensure the ledger balances.
Expense and revenue accounts use the Average currency translation method. Due to this, the same amount in a balanced site journal can be rolled up to two different amounts. So, a new ledger entry is created to balance out the "Corp" entity ledger.
On the Ledger Consolidation form, if the Year End check box is selected, the system posts expense and revenue accounts to the ledger based on the Average currency translation method at the time of the posting. As the currency rates fluctuate, these accounts' totals should also fluctuate. The system creates new ledger entries to the following accounts: