Corporation Switch User Manual

12-6 Oracle Financial Consolidation Hub User's Guide
specified for the hierarchy.
Translation Example
Vision: Canada uses Canadian Dollars (CAD) as its functional currency but consolidates
to Vision: North Americas Group which is based in USD. Thus, Financial Consolidation
Hub translates from CAD to USD during the consolidation process.
Vision: Canada is assigned a currency type of Translation, which uses an ending rate
type called Ending, an average rate type called Average, PTD mode for income
statements, and YTD mode for equity. It posts translation adjustments against the
Cumulative Translation Adjustment line item. The following table shows Vision:
Canada's trial balance for January 2005.
Vision: Canada's Trial Balance for January 2005
Entity Line Item Dr (CAD) Cr (CAD)
Vision: Canada Cash 1000 400
Vision: Canada Accounts Receivable 1200 500
Vision: Canada Accounts Payable 500 700
Vision: Canada Paid-in Capital 0 400
Vision: Canada Retained Earnings 0 300
Vision: Canada Revenue 0 2000
Vision: Canada Cost of Goods Sold 1100 0
Vision: Canada Salaries 400 0
The ending rate in January is 0.8. The average rate is 0.7. Since the translation method
uses YTD mode for equity accounts and PTD mode for income statement accounts,
Financial Consolidation Hub uses the ending rate for the balance sheet and the average
rate for the income statement. However, there is an historical rate of 0.84 for Retained
Earnings and Paid-in Capital, and this overrides the ending rate for those accounts. The
following table shows the rates used by translation for Vision: Canada.