Corporation Switch User Manual

Setting Up Translation 12-3

amount. Historical rates or amounts thus override ending and average

rates.

Income Statement Mode

You can specify whether you want Financial Consolidation Hub to use the YTD or PTD

to translate income statement account balances.

A YTD specification translates ending balances using the ending rate. The period

activity is then calculated from the difference between the current period's ending

balance and the prior period's ending balance

A PTD specification translates current period activity using the average rate. The

ending balance is then calculated by summing the translated period activity and the

prior period's translated ending balance.

The most common option in accordance with FAS 52 and IAS 21 is to use the PTD

option for income statement accounts.

Note: Regardless of the income statement mode you choose, if you

enter an historical rate or amount for a given income statement account,

Financial Consolidation Hub translates that account using the historical

rate or amount. Historical rates or amounts thus override ending and

average rates.

Use as Default

You can designate a translation method as the default by selecting an option from the

Use as Default drop-down list in the Create Translation Method page.

When you construct a consolidation hierarchy, the default translation method is

automatically assigned to the relationship attributes between a consolidation entity and

its child operating entities. You can change the default translation method.

Enable Translation Method

If you select No from the Enable Translation Method drop-down list in the Create

Translation Method page, the translation method you defined is unavailable when you

create a consolidation hierarchy. If a translation method is disabled, it can no longer be

used in the construction of a new consolidation hierarchy.

Note:

A disabled translation method will continue to be used in

existing consolidation hierarchies that already include it and will

continue to be processed during the Consolidation Process.