Exposure Draft E44 The Effects of Changes in Foreign Exchange Rates. When you run elimination, NetSuite posts elimination journal entries. The foreign currency financial statements of a foreign. -Changes in the cumulative translation adjustment are reflected in net income for the period. Historical accounts are created as shared members, for example, FCCS_Common StockStep 6: Release the cumulative translation adjustment into net income, as applicable. It is recognized under the shareholder’s. Under FASB 52, when a net translation exposure exists, Multiple Choice. The translation adjustment from translating a foreign subsidiary's financial statements should be shown as. This allows you to create rules that modify previous system translation calculations, but are still subject to the "balancing" effects of the system Foreign Exchange and CTA calculations. View all BCS assets, cash, debt, liabilities, shareholder equity and investments. Exch. ) for 2019 and. Foreign currency translation–This is the process of expressing a foreign entity’s functional currency financial statements in the reporting currency. -The cumulative translation adjustment reflects changes in the fair values of marketable securities on the balance sheet. Get a hint. A large cumulative translation adjustment related to the Canadian subsidiary is included in accumulated other comprehensive income on Hughes Inc. 6 for hedges of foreign currency risk . A cumulative translation adjustment (CTA) summarizes the gains and losses resulting from varying exchange rates over time. If you open the report from the menu, be sure a consolidated subsidiary is selected in the Subsidiary. The CFO is unsure whether the cumulative translation adjustment should be removed from equity, and if so, to what other account it should be transferred. 4. Realized gains and losses on available-for-sale debt securities . 54 =⊂ $1. C: Changes in the cumulative translation adjustment account are added back in the computation of net cash flow from operating activities since they are non-cash income or expense. CTA is a line item in the balance sheet that shows the gains and losses created by exchange rate fluctuations. Monetary assets and liabilities (those whose value does not fluctuate over time - cash, receivables, payables) Translated at the current exchange rate Nonmonetary assets and liabilities and stockholders' equity accounts (those whose value does fluctuate over time - inventory, investments, fixed assets, etc. 5. -2,945 or parentheses e. ceaa-acee. 6% the past 2 days ; 6:28a SolarEdge stock price target cut to $140 from $176 at TD CowenFiscal year is January-December. Hedge accounting guidance requires a reporting entity to designate hedging relationships at a transaction. What journal entry did the parent company make as a result of this computation? Direct computation of translation adjustment:Answer. Exch. How is CTA used in financial statements? Example 1: The tax effect of cumulative translation adjustments would be allocated specifically to other comprehensive income, whereas the tax effect of a tax rate change for the current year would be reflected in continuing operations. com. ), when you translate your actual balances into another currency, General Ledger automatically sets the balance of the Cumulative Translation Adjustment account to the net difference needed to balance your translated chart of accounts. The accountant for the partnership believed that the dissolved partnership and the newly formed partnership were two separate entities. Direct computation of translation adjustment:For more information about this account, see Cumulative Translation Adjustment (CTA) Overview. 6 billion in 2006. Gain-----Unrealized Gain/Loss Marketable Securities. Barclays PLC ADR Annual balance sheet by MarketWatch. Share capital 6,000, Share premium 3,500, Cumulative translation adjustment - debit 2,000, Treasury shares, at cost 700, Retained. 7% higher year-on-year at €3. The amount of equity income recognized by the paren t in the current year is eliminated. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $115,375. The measurement process of translation, known as the current rate method, depends on the financial statement classification:. A translation adjustment can affect consolidated net income. 30 November 2016: 0,8525. Translation of financial statements Assume that your company owns a subsidiary operating in Brazil. Gain. Exch. b) Current Rate Method, with the Cumulative. Click to get started! My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts. Gain (1. Current Rate Method: A method of foreign currency translation where most items in the financial statements are translated at the current exchange rate. Question #3: What is the annual change in the translation adjustment for Year 2? Question #4: What is the cumulative translation adjustment at the end of Year 2? Exercise 12-13 Year 1 Rupees Dollars Year 1 Debits Cash Receivables Inventory Fixed Assets 100,000 450,000 680,000 1,000,000 0. 10 =. B. Cash: $1,526,569: Answer Answer Accounts receivable: 1,768,320: Answer Answer. Translation gain/loss as a component of the net income. programme de suivi environnemental n'est prévu. Converting financial statements prepared under foreign GAAP into domestic GAAP B. . 60 = P1,470,300o =====830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. 9M) (6. A Cumulative Translation Adjustment (CTA) is a line in an accounting statement that addresses gains and losses created by exchange rate changes. Cumulative Translation Adjustment/Unrealized For. 4 Cumulative translation adjustment accounts An investor may decide to contribute a portion or all of its foreign operations that constitute a business to a joint venture. In cumulative translation adjustment until the hedged net investment is sold or liquidated. 4 Cumulative translation adjustment accounts An investor may decide to contribute a portion or all of its foreign operations that constitute a business to a. The CTA line item presents gains and. S. 1. -Changes in the cumulative translation adjustment are reflected in net income for the period. View all CINF assets, cash, debt, liabilities, shareholder equity and investments. -The cumulative translation adjustment is a plug figure to balance the trial balance. 4. dollars. CTA is a special account that is required for consolidated balance sheets in NetSuite OneWorld accounts with multi-currency enabled. 1,775 debit b. Learn how to record the translation adjustment that arises from translating a foreign entity’s financial statements into the reporting currency, when the. This is the ‘CTA’ required to make the Balance Sheet remain in balance – because: We converted the Assets & Liabilities on Figure 6 at the using the Current FX Rate prevailing at the end of February. Direct computation of translation adjustment: Net income x (EOY - Average exchange rate) EOY cumulative translation adjustment Check Translation of financial statements Assume that your company owns a subsidiary operating in France. The foreign currency translation reserve contains the cumulative translation adjustments on the translation of an entity’s net investment in a foreign operation in the consolidated financial statements. Second quarter 2021 net sales by business segment and operating profit (loss) by business segment compared with the first quarter of 2021 and the second quarter of 2020 are as follows. In the three months ended July 31, 2023, we wrote off an additional $0. Click the card to flip 👆. B. 9 million cumulative translation adjustment in earnings. In cumulative translation adjustment until the hedged net investment is sold or liquidated. A CTA entry is required under the Financial Accounting Standards Board (FASB). The December 31,2019 , consolidated balance sheet reported a cumulative translation adjustment with a $61, 950 credit (positive) balance. 46B) (1. 2022 2021 2020 2019 2018 5-year trend; Net Income before Extraordinaries----- This is referred to as the translation adjustment and is reported in the statement of other comprehensive income with the cumulative effect reported in equity, as other comprehensive income. Undeposited Funds. B: The cumulative translation adjustment account affects the amount of gain or loss reported upon the sale of a foreign subsidiary. Cumulative translation adjustment (59) (542) 564 (512) Net income (loss) and comprehensive income (loss) for the period $ (13,190) $ (11,452) $ (46,279) $ (18,816) Loss per common share : Equity holders of the Company Basic and diluted net loss per common share (note 10). Step 4. Annual balance sheet by MarketWatch. Under the current rate method, the translation adjustments don’t affect the income statement but instead are included in other comprehensive income (OCI) and. Measurement Period Adjustments: The Basics. Revaluation launches a process that revalues the ledger currency equivalent balances for the accounts and currencies you select, using the appropriate current rate for each currency. This ensures that financial reports are as accurate as possible, and reflect the true economic health of the company. 4. Unrealized Gain/Loss Marketable Securities-----Cumulative Translation Adjustment/Unrealized For. Cumulative Translation Adjustment/Unrealized For. the cumulative amount of exchange differences that have arisen from the translation of a foreign operation before the foreign operation becomes hyperinflationary. All-Inclusive Income Concept: Meaning, Criticism, History. A simple example would be one where you had an opening balance sheet with the. Study with Quizlet and memorize flashcards containing terms like Question 1 What is meant by the "translation" of foreign currency financial statements? A. A country is defined as a highly inflationary economy if its cumulative three-year. Cumulative Translation Adjustment/Unrealized For. 4 million related to a joint venture investment located in South Africa. Fiscal year is October-September. The entire task of foreign currency translation can be understood as determining the correct exchange rate to be used in converting each financial statement line item from the foreign currency to USD. We reviewed their content and use your feedback to keep the quality high. BOY cumulative translation adjustment. 45 4. The foreign subsidiary is operating is a hyperinflationary environment. Compute the translation adjustment for the year 2020 a. Cumulative Translation Adjustment Proof. The C. English Subs. Such adjustments may be required when the currency of a subsidiary is different from the reporting currency of the reporting company. You are able to essentially create a Balance Sheet. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $314,100. The cumulative translation adjustment is typically recorded as part of equity. It adjusts the balance sheet to compensate for the difference between the consolidated exchange rates of different account types, such as assets, liabilities, income, and equity. Assume the U. Although ASC 830-30-40-1 and ASC 830-30-45-13 only address the treatment of cumulative translation adjustments, we believe that other amounts in AOCI should be analogized to this guidance (e. The unit of account in ASC 815 is generally the individual derivative. Converting financial statements of a foreign currency into a domestic currency C. 38B) Revaluation Reserves. multinational firms for the time period 1991–1996. The CTA is required under the FASB No. Changes in reporting currency amounts that result from the translation process are called translation adjustments and are included in the cumulative translation adjustment account, which is a. The CTA account captures the difference between these two exchange rates in US$. Using a CTA GL Account is a common practice for any business doing Foreign Currency Translation. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $273, 564. 1 Unit of account. General Electric’s CTA was a negative $4. Changes in reporting currency amounts that result from the translation process are called translation adjustments and are included in the cumulative translation adjustment. In addition, entities should include an analysis of changes in cumulative. Cumulative Translation Adjustment (CTA) Overview. a. Foreign Exchange (FX) to Cumulative Translation Adjustment (CTA) Historical accounts will always be translated using the default rate for the account unless the account has the exchange rate type of "Historical Amount Override" or "Historical Rate Override". Gain (12. The cumulative translation adjustment related to a specific foreign entity is transferred to net income when that entity is sold or otherwise disposed of. Prepare a schedule to verify the translation adjustment. B) C) D) Changes in the cumulative translation adjustment are reflected in net income for the period The cumulative translation adjustment reflects changes in the fair values of marketable securities on the balance sheet. GAAP 2019: UK reporting – FRS 102 (Volume B)A) The cumulative translation adjustment is a plug figure to balance the trial ba nce. TM - Translate the Balance Sheet first. 6. 15B) (2. Direct computation of translation adjustment: AnswerBOY cumulative translation adjustmentBOY net assets x (EOY - BOY exchange rates)BOY net assets x BOY exchange rateNet income x (EOY - Average exchange rate)Net income x average exchange rateDividends x (EOY - Dividend exchange rate)Dividends x dividend exchange rateEOY. 1 Overview Financial reporting developments Foreign currency matters | 2 The first step in the translation process is to identify the functional currency (refer to section 2. The exception would be income statements. 31B) (4. A) The cumulative translation adjustment is a plug figure to balance the trial ba nce B) C) D) Changes in the cumulative translation adjustment are reflected in net income for the period The cumulative translation adjustment reflects changes in the fair values of marketable securities on the balance sheet. the cumulative translation adjustment. ). Depreciation . Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $273, 564. Companies should calculate this frequently and create a cumulative adjustment. 8. 46 4. Create flashcards for FREE and quiz yourself with an interactive flipper. ’s balance sheet. Fiscal year is January-December. 775 debit d. 1M. When a foreign. Compute the ending Cumulative Translation Adjustment directly, assuming a BOY balance of $197,060. The foreign currency translation reserve contains the cumulative translation adjustments on the translation of an entity’s net investment in a foreign operation in the consolidated financial statements. BOY cumulative translation adjustment A cumulative translation adjustment (CTA) summarizes the gains and losses resulting from varying exchange rates over time. This is shown in Exhibit F. 0300 0. Cumulative Translation Adjustment/Unrealized For. SIC-30 was superseded and incorporated into the 2003 revision of IAS 21. CTA account. Translation of financial statements Assume that your company owns a subsidiary operating in France. IAS 21 (1983) was revised as part of the comparability of financial statements project. Currency translation is the process of converting a foreign entity's functional currency financial statements to the reporting entity's financial statements. 60 = P1,470,300o =====Solely because of the change in the exchange rate, the company’s intercompany accounts (prior to any currency translation adjustments) no longer balance, as shown in Exhibit 2. Problem 5-7 (IAA) Bronze Company provided the following information at year-end: Share capital Share premium Cumulative translation adjustment - debit Treasury shares, at cost Retained earnings Cumulative unrealized gain on option contract designated as cash flow hedge 6,000,000 3,500,000 2,000,000 700,000 1,500,000 600,000 What is the. Gain (414M) (450M) (403M) (448M) (445M) Unrealized Gain/Loss Marketable. The ASU is intended to resolve diversity in practice about whether Subtopic 810. This balancing amount is. Cumulative translation adjustment, before income taxes (1 ) 26 (22 ) 26 Income taxes related to items of other comprehensive income - - - - Other comprehensive income (loss), net of tax. 4. NetSuite adds the system-generated Cumulative Translation Adjustment-Elimination (CTA-E) account to your chart of accounts after a user enters a qualifying transaction. Study Ls Quiz Ch 8 flashcards. Exch. Show transcribed image text. Annual balance sheet by MarketWatch. Cumulative 3-year inflation in excess of 100%. cumulative translation adjustment as a deferred asset. A large cumulative translation adjustment related to the Canadian subsidiary is included in accumulated other comprehensive income on Hughes Inc. The cumulative translation adjustment (CTA) for a currency translation adjustment is an entry in the “Accumulated Other Comprehensive Income” section of the translated balance sheet, reflecting gains and losses caused by. Advanced Accounting Final. 2. What journal entry did the parent company make as a result of this computation? $ Direct computation of translation adjustment: BOY net assets x (EOY - BOY exchange rates) Net income x (EOY - Average exchange rate) Dividends x (EOY -. Exch. It is not reported in current income. 0300 0. Year 2's total translation adjustment is $8,000 as of the end of the year. Example FX 7-1 illustrates the application of this guidance. A cumulative translation adjustment in a translated balance sheet summarizes the gains and losses from varying exchange rates. 6:35a Tesla stock falls 0. Check Known Consolidation Issues. This option is only available for multi-currency. For multi-currency consolidations, you may want to add an additional ‘Currency Translation Adjustment’ or a ‘Cumulative Translation Adjustment’ account to your consolidated group to balance the Balance Sheet. Cumulative Translation Adjustment-Elimination. The translation adjustment does not have any impact on net income. All values USD Millions. Study with Quizlet and memorize flashcards containing terms like During the translation process, the current year change to the cumulative translation adjustment is a function of which of the following: 1) Its operating cash flows 2) Its monetary assets minus monetary liabilities 3) Its current assets minus current liabilities 4) Its total assets minus total. How is the cumulative translation adjustment solved for?-in balance sheet and for current method-computed on 1/1 carryforward balance +/- current period translation gain or loss, its a plug that falls out of the trial balance. 10) $ (0. Year-to-date net loss reaches €4. 6. The C. Step 1. One journal line is the Accounting Setup Manager defined Cumulative Translation Adjustment Account (CTA) which is offset by the proper Gain/Loss account as seen in the primary journal ledger. 4 of 5. B. Ltd. 39(c) are commonly identified as either ‘Cumulative Translation Adjustment’. Remeasurement Translation D. 14B) Unrealized Gain/Loss Marketable. S. It is an entry in the accumulated other comprehensive income section of a. Undeposited Funds. Current Rate Method & Financial Statement Effects. Two ways to control translation risk were presented: a balance sheet hedge and a derivatives “hedge. the foreign subsidiary is about to be liquidated, so that the value of its Cumulative Translation Adjustment (CTA) would be realized; the foreign subsidiary is operating in a hyper inflationary environment ; the firm has debt covenants or bank agreements that state the firm's debt/equity ratio will be maintained within specific limitsCurrency translation – You can set up the account ranges and rates to translate from the accounting currency of the source company to the accounting currency of the consolidation company. 2023 2022 2021 2020 2019 5-year trend; Net Income before Extraordinaries----- The amendments in this Update resolve the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, Foreign Currency Matters—Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling. , Translation exposure refers to Multiple. 3% on Thursday and 13. Accountants are often asked to proof monthly CTA amounts to ensure they are correct. T. Expert Answer. Create Two. 127,500 (Gain) loss on sale of equipment . Fin. Total assets minus total liabilities. apply is A current/noncurrent method. On a partial disposal of a foreign operation, an entity is required to reclassify to profit or loss the proportionate share of the Net investment hedge amounts that are included in the assessment of hedge effectiveness are recorded in OCI as a part of the cumulative translation adjustment. Cumulative Translation Adjustment/Unrealized For. b. Foreign subsidiaries of U. Annual balance sheet by MarketWatch. All values USD Millions. Overall, the CTA is an important. DH 8. 44 4. The entry on Line 23a should allow the IRS to differentiate between the actual day-to-day operational gains and losses and those caused due to foreign currency translation. Ending RI - Beginning RI + Dividends). The exception would be income statements. The subsidiary maintains its books in the Australian Dollar (AUD) as its functional currency. 0300 3,000 13,500. While the CTA can be positive or negative, it is generally considered a non-cash item that does not impact a company’s cash flow. The change in cumulative translation adjustments includes the following: (in thousands) 2011: 2010: 2009: Translation of non-U. When consolidating a foreign subsidiary, which of the following statements is not true? Subsidiary's income/loss is not carried forward to the consolidated. The CTA (Cumulative Translation Adjustment) GL Account is used as a plug to balance the Trial Balance after translating using various exchange rates. When that is checked AND you uncheck the cumulative checkbox on the alternate date range it makes the cumulative translation amount for the period only. Adjustments can occur over the course of multiple accounting periods, as for. 5. Effective date of IAS 21 (1983) 1993. Reporting entities should also apply the guidance applicable to OCI and cumulative translation adjustments accounted for in accordance with ASC 830 for equity method investments that are (or are part of) a foreign entity, and for domestic equity method investments that have an investment in a foreign entity. The CTA represents the cumulative foreign currency gain or loss resulting from the net. Resulting unrealized gain or loss amounts are posted to the unrealized gain or loss accounts or to the cumulative translation adjustment account. Cumulative Translation Adjustment. Find your RI that balances your Balance Sheet. (Round answers to 0 decimal places, e. December 1993. Cumulative Translation Adjustment-Elimination. S. From my experience, in the HFM world equity translation is most commonly handled through a set of so-called “override” accounts. Bringing the translation gain or loss into the income statement improves comparisons with a temporal method firm. Accounts with Comprehensive Income Cumulative Translation Adjustment (CICTA) Enabled When building out the Chart of Accounts in FCC, any account with the “historical” rate type enabled (Historical, Historical Rate Override, Historical Amount Override) will calculate the FX translation and then transfer the FX Impact that is calculated to. . Exch. e) Accumulated other comprehensive income. In addition to the disclosures examples provided in this installation, the GAAP Financial Statement Disclosures Manual alsoCumulative translation adjustment : 1,345 (1,027) Net loss and comprehensive loss for the period $ (8,859) $ (7,402) Loss per common share : Equity holders of the Company : Basic and diluted net loss per common share (note 13) $ (0. The two primary sources for CTA, as per IAS 21. Tenet Healthcare Corp. S. The foreign currency translation adjustment, also known as the cumulative translation adjustment CTA, aggregates all of the changes produced by fluctuating exchange rates. Exch. 10,000 . 10. A. 3 billion in 2005 and a positive $3. gc. Please refer to the Translation Technical Brief in Note 139717. Where is the remeasurement gain or loss reported in the parent company's financial statements? Select one: O a. It was noted, however, that last year’s total included €2. 52 rule. 174K (2. Once the cumulative translation adjustment is calculated we can complete the translation of the balance sheet for the U. d. The FASB has issued ASU 2013-05 titled Foreign Currency Matters (Topic 830) - Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. IAS 21 Accounting for the Effects of Changes in Foreign Exchange Rates. This calculation is shown in Exhibit E. none of the options. Translation Translation B. S. *BOY net assets x (EOY rate - BOY rate) Net income x (EOY rate - Avg rate) - Dividends x (EOY rate - rate @ div declaration) = CTA for that year. Accounting questions and answers. The translation process totals the translated debits and credits for all account combinations sharing the same primary, second, and third balancing segment values. All gains or losses from translation are reported as a cumulative translation. a. 5,125. 06M) (11M) (7M) Unrealized Gain/Loss Marketable Securities. Cumulative Translation Adjustment/Unrealized For. Companies that are adopting NetSuite OneWorld might need to consider. One of the key features of Oracle FCCS is the built-in balance sheet movement translations with FX/Cumulative Translation Adjustments (CTA) Calculations. It is an entry in the accumulated other comprehensive income section of a translated balance sheet. Direct computation of translation adjustment: $ Net income x (EOY - Average exchange rate) EOY cumulative translation adjustment General Journal Description Debit Credit To record the translation adjustment. The excess of fair value over book value since the date of acquisition is revalued for the change in exchange rate. Given the relevant exchange rates presented, a. Other. The ICAEW Library stocks the latest UK GAAP handbooks and manuals. Exch. How is this figure computed, and where is the amount reported in the financial statements? Click the card to flip 👆. For NetSuite OneWorld, consolidated balance sheet reports use a special account called Cumulative Translation Adjustment (CTA) to achieve balance when there is more than one currency. Undeposited Funds. Related Interpretations. C. (2 words) 1. Many translated example sentences containing "cumulative" – French-English dictionary and search engine for French translations. 50,775 debit. 19 1,606,500 Cost of goods sold -810,000 $1. 0300 0. Cumulative Translation Adjustment/Unrealized For. R . earnings Cumulative translation adjustment Total liabilities and equity Statement of cash flows: Net income Change in accounts receivable Change in inventories Change in current liabilities Net cash from operating activities Change in PPEr net Net cash from investing activities Change in long—term debt Dividends Net cash from financing activities Net. Assets and Liabilities. The cumulative translation adjustment is the combination of currency trade adjustments made over a specific financial period, like a fiscal year. com for some clever saved searches. Study with Quizlet and memorize flashcards containing terms like When the current rate method of translation is appropriate, the resulting translation adjustment must be reported in _____ on the BS, In determining the remeasurement G/L that results when the temporal method of translation is used the beginning net monetary asset or liability is. Enter loss and debit cumulative translation adjustment using either a negative sign preceding the number e. Other. Cumulative Translation Adjustment (CTA) account. The foreign currency translation adjustment or the cumulative translation adjustment (CTA) compiles all the fluctuations caused by varying exchange rate. The foreign subsidiary is about to be liquidated, so that the value of its Cumulative Translation Adjustment (CTA) would be realized. S. 2 and later: How is the Cumulative Translation Adjustment (CTA) Account Calculated. dollar during the year. Financial Statement Reporting: ASC 830-30-45-13. Book the resulting exchange differences to Cumulative Translation Adjustment accounts; Build a manual adjustments interface for users to fine-tune the streamlined result; Traditional design and why it’s bad. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Answer. . Gain (564M) (536M) 52M (1. g. Small differences in the decimals of FX rates could result in significant variances for large transactions, which create challenges in FX revaluation, cumulative translation adjustment (CTA) rollforward, and intercompany elimination and settlement. 6M) (6. For foreign exchange forward contracts designated as net investment hedges, the forward carry component is excluded from the assessment of hedge effectiveness and recognized in OCI on a. a derivatives hedge is necessary to bring balance to the consolidated balance sheet after an exchange rate. The correct answer is A. Sts A. View all RL assets, cash, debt, liabilities, shareholder equity and investments. Translate using the current exchange rate at the balance sheet date for assets and liabilities. the effect that an unanticipated change in exchange rates will have on the consolidated financial reports of an MNC. Cumulative translation adjustment (CTA) results from the process of translating financial statements from a foreign entity’s functional currency into the reporting currency of the reporting entity.