Translation
In accounting, translation means converting an entity's functional-currency statements into the presentation currency — assets and liabilities at the closing rate, income and expense at average — with the difference recorded in OCI as the CTA.
- Layer
- Lexicon
- Defined in
- Lexicon
- Components
- 2
Authority
This definition follows ASC 830-30.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
Translation, in use
Quoted from the 6 documents that use the word — what it does to an interface, in the spec's own sentence.
Values crossfade at 140ms with no translation — translation would imply the labels moved too.
Displayed as its own equity line, never buried — it's the arithmetic consequence of the translation method, and hiding it makes the balance sheet look inexplicable.
Swipe left/right on the statement body moves between periods, with the label column static and the values crossfading (140ms, no translation — translation implies the labels moved too).
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- conversion
Components that render this
The concept is not documentation-only. These are the components that name it in their specification, grouped and stated exactly as the catalog states them.
6Statements
Family spec12Close, controls & consolidation
Family specComponents that render the terms it depends on
Little in the catalog names this concept outright, but its definition is built out of others that are named. These render presentation currency, expense.
6Statements
Family spec7Dashboard & charts
Family spec11Payables (AP)
Family spec13Metrics & analysis
Family specTerms this one depends on
- Presentation currencyThe currency the statements are shown in. ASC 830 calls it the reporting currency; IAS 21 the presentation currency — we use the latter
- Closing rateThe spot exchange rate at the balance sheet date, used to translate assets and liabilities and to remeasure monetary items
- ExpenseOutflows or using up of assets, or incurrences of liabilities, from delivering goods or services — recognized when incurred, not when paid
Also in Statements
Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.