# Translation

> Translation — 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.

Source: https://lopifi.com/glossary/translation
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is 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.

## Words this system refuses for it

- conversion

- **Category:** Statements
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Rendered by:** [translation-summary](https://lopifi.com/md/components/translation-summary), [statement-table](https://lopifi.com/md/components/statement-table)
- **Related:** presentation-currency, closing-rate, expense