Additionally, PwC helped TransRe create a more accurate and. If the pattern of cash flows and exchange rates are. Post currency translation adjustments to subitem / transaction type: 980; Currency sequence definitions: Sequence Number: This is a number to uniquely identify a translation/rounding step. You can customize balance sheet reports to include a column titled Translation Adjustment. Translation adjustments arise when a company translates the financial statements of its foreign subsidiaries into its reporting currency to prepare consolidated financial statements. ASC 830-30-45-13. 000 300,000 Cash Accounts Receivable, net Prepaid taxes Accounts payable Common stock Additional paid-in capital Retained earnings Foreign currency translation adjustment Revenues Expenses. Resulting unrealized gain or loss amounts are posted to the unrealized gain or loss accounts or to the cumulative translation adjustment account. The company's effective tax rate on all. 3. What is Foreign Currency Translation Adjustment? As was mentioned above, when cash flows are translated from the local currency into the currency used for financial reporting, the translation may result in a gain or loss. Impact of exchange rate changes needs to be taken into account by posting adjustment entries. 1. ii. Required Assuming a tax rate of 25%, prepare a. The Board also amended SIC-7 Introduction of the Euro. The translation adjustment from translating a foreign subsidiary's financial statements should be shown as. Financial reporting in Dynamics 365 Finance includes features that support complex currency reporting requirements. Foreign currency translation is the process of converting the financial statements of international subsidiaries into the domestic or functional currency of the parent. Adjustments for currencyAccumulated other comprehensive income (OCI) is a line item in the shareholders' equity section of the balance sheet that includes income that is not reported in the income statement. A translation adjustment is created by the change in the relative value of a subsidiary's net assets caused by exchange rate fluctuations. The CTA line item presents gains and. The foreign currency translation adjustment, also known as the cumulative translation adjustment CTA, aggregates all of the changes produced by fluctuating exchange rates. The differing operating and economic characteristics of varied types of foreign operations will be distinguished in accounting for them. The IFRS has listed the items included in the other comprehensive income, and the gain from foreign currency translation is one of the items listed. in the calculation of net income d. Pension liability adjustment. we see that a large component of the Statement of Comprehensive Income is Foreign currency translation adjustment. As a result, consolidating a foreign subsidiary normally necessitates a foreign-currency translation adjustment. 1. 2. How much will Amsterdam report as comprehensive income/loss? A. Currency Devaluations, SIC-19 Reporting Currency—Measurement and Presentation of Financial Statements under IAS 21 and IAS 29 and SIC-30 Reporting. Translation versus remeasurement is a debate that has been ongoing in the accounting world for some time. A А foreign currency translation adjustment holding gain or loss С future period adjustment D prior period adjustment 0 0 14 The fair value option can be used when accounting for our company's investment in another company's bonds. The preparation of these condensed consolidated financial. Because of the difference between the functional currencies and the denomination of the loan, foreign currency translation adjustments arise. The approximation usually works fine for quick month-end reporting and can be fine-tuned in audited reports. Answer : The Massoud Consulting Group reported net income of $1,378,000 for its fiscal year ended December 31,2021 . Question: The Massoud Consulting Group reported net income of $1,356,000 for its fiscal year ended December 31, 2021. There were 1,000,000 shares of common stock outstanding at the beginning of the year and an additional 400,000 shares were issued. The financial statements of Hello and GutenTag as at 31 December 2016: Prepare consolidated statement of cash flows for the year ended 31 December 2016. A: The other comprehensive income section of Form 5471 Schedule C should include all items in OCI as defined in ASC 220 which includes not just foreign currency translation adjustments but also cash flow hedges and other derivatives, unamortized prior service cost and deferred gains and losses on pension plans, etc. 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. ($4,650) Here’s the best way to solve it. This is based on the assumption that the average exchange. FAS 52: Foreign Currency Translation FAS 52 Summary Application of this Statement will affect financial reporting of most companies operating in foreign countries. Therefore, gains from foreign currency translation are treated as (d. 59; Historical rates can be used in one of two ways. C. The difference between reference translation (Step 1) and special translation (Step 2) is calculated. Foreign currency translation–This is the process of expressing a foreign entity’s functional currency financial statements in the reporting currency. When the amount of assets translated at the current exchange rate is lower than the amount of liabilities translated at the current exchange rate. In general, currency gains and losses relating to intercompany loans are included in consolidated earnings. FASB 52 is a guideline for foreign currency translation issued by the Financial Accounting Standards Board (FASB). If the foreign currency is the functional currency, translation adjustments will be reported in stockholders’ equity. Changes in reporting currency amounts that result from the translation process are called translation adjustments; translation adjustments are included in the cumulative translation adjustment. The company's effective tax rate on all items affecting. Step 4. ASPE 1651 Foreign Currency Translation Implementation Guide 2000, 300-5TH AVENUE SW, CALGARY, AB T2P 0L4 T: 403. 1. C. When performing currency translation, different exchange rates such as average and period end rates, as well as formulas, are applied. Step 5: Compute the translation adjustment as opening balance. 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. Going beyond the discussed currency conversion, the solution allows for currency conversion based on entity specific rates. Reserves for own shares or own corporate units 133 P] A. The financial statements of many companies now contain this balance sheet plug. ) Scope of IAS 21. dollar. the translation adjustment that results from the use of the temporal method is a realized (cash) gain or loss that is caused by. 41, include: Step 3: Recording the gains and losses on the currency translation. Other. A) foreign currency translation adjustments. The division had incurred operating income of $810 in 2021 prior to the sale, and its assets were sold at a loss of $1,780. ASC Topic 830, Foreign Currency Matters (ASC 830), prescribes the accounting for foreign currency within the statement of cash flows. Translation gain/loss is used on the income statement when using the temporal method. Click Enable. Which of the following should not be included in accumulated other comprehensive income? a. The following additional factors are considered in determining the functional currency of a foreign operation, and whether its functional currency is the The local currency amounts of the specified combinations of FS items and subitems are translated into the group currency by applying their respective exchange rate type, for example, the Average Rate. Rerun the translation process. S. (b) then translates those financial statements into its presentation currency applying paragraph 242 of IAS 21 . Click Post > Post to post the transaction. The US dollar is the _______ currency for a US-based company. Create flashcards for FREE and quiz yourself with an interactive flipper. On a partial disposal of a foreign operation, an entity is required to reclassify to profit or loss the proportionate share of the Foreign currency translation–This is the process of expressing a foreign entity’s functional currency financial statements in the reporting currency. Translation adjustment is used on the balance sheet when using the current method. Adjustments to balances in a consolidation company can only be made using the Closing period adjustments page. A translation adjustment arises because an investee's assets, liabilities, and stockholders' equity are translated. If the translation. Adjusted Trial Balance ($) Exchange. Entity A has its translated data in the universal journal (ACDOCA table), that is the translation feature in G/L accounting is used, so assigning translation methods is not necessary. Currency Devaluations, SIC-19 Reporting Currency—Measurement and Presentation of Financial Statements under IAS 21 and IAS 29 and SIC-30 Reporting Currency—Translation from Measurement Currency to Presentation Currency). 5, a reporting entity should generally use the dividend remittance rate to translate the financial statements of its foreign entities because it is the rate indicative of the ultimate cash flows from the foreign entity to the reporting entity. A positive cumulative translation adjustment of €685 is needed as a balancing amount, which is reported in the stockholders’ equity section. The exception would be income statements. On September 1, 20X1, the spot exchange rate was $. , the amounts of third-tier foreign entities are translated into the reporting currency of their. The foreign currency translation adjustment. When a foreign currency is the functional currency, foreign currency balances are translated using the current rate method and a cumulative translation adjustment is reported on the_______________ _________. This balancing amount is. Run the Delete Translated Balances process and after the process completes, rebuild the balances cube. Foreign Currency Translation (Issued 12/81) Summary. We can see that for 3 years in a row, the Comprehensive Income was wildly variant from Net Income. 1. US GAAP refer to this process as remeasurement. Translation Risk: The exchange rate risk associated with companies that deal in foreign currencies or list foreign assets on their balance sheets. The two primary sources for CTA, as per IAS 21. 17 How should the foreign currency transaction gain be reported on Toigo's. Currency translation adjustments ; Gains or losses on net investment hedges; Gains and losses on derivatives qualifying as cash flow hedges, For fair value or cash flow hedges, the difference between the initial value of an "excluded component" of the hedging instrument and the current fair value of such component, to the extent not. Select the bank account, and then select Transactions. Determine the translation adjustment to be reported on Stephanie’s December 31, 2017, consolidated balance sheet, assuming that the Swiss franc is the Swiss subsidiary’s functional currency. the nature and extent of significant restrictions on an entity’s ability to access or use assets and settle liabilities of the group, or in relation to its joint ventures or associates (paragraphs 10, 13, 20 and 22 of IFRS 12 Disclosures of Interests in Other Entities. 22 Jun 2023 PDF. Spritzer Inc. To carry out currency translation, from the SAP Easy Access menu choose Accounting Financial Accounting Special Purpose Ledger Periodic processing Currency translation Local for local ledgers or Global for global ledgers. The Massoud Consulting Group reported net income of $1, 354, 000 for its fiscal year ended December 31,2024 , in addition, during the year the company expenenced a positive foreign currency translation adjustment of $240, 000 and an uniealized loss on debt secuities or $80, 000. 1. 2. Currency 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. Either copy mechanism, whereas the historical value is. Accounting questions and answers. In particular, Entity P translates all items in the financial statements of Entity S at the closing rate. This column shows the amount resulting from the difference between the consolidated exchange rate that is used on each account and the current. FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021. Foreign currency translation adjustments (5,400) Unrealized loss on available-for-sale securities (7,250) Cash dividends declared. Foreign currency translation–This is the process of expressing a foreign entity’s functional currency financial statements in the reporting currency. There are various interpretations that deal with specific aspects of foreign currency translation, but this article focuses on the basics of IAS 21. org (member login required) CPE self-study. At the Confirmation dialog box, click OK . In addition, during the year the company experienced a positive foreign currency translation adjustment of $430,000 and an unrealized loss on debt securities of $70,000. . As shown in Exhibit 1, eBay’s currency translation adjustments (CTA) accounted for 34% of its comprehensive income booked to equity for 2006. A – Eliminations and Adjustments. Often, the CTA can show you the accurate value of your purchases in your native country's currency. Purnell Industries had the following account balances at 12/31/20 (the end of its fiscal year): Sales revenue $2,800,000 Selling expense $360,000 Foreign currency translation adjustment, gain 12,500 Interest expense 32,000 General and administrative expense 285,000 Cost of goods sold 1,585,000 Gain. com. Ignore earnings per share. dollars are included in the Foreign Currency Translation Adjustment in the consolidated statement of stockholders’ equity. 26. C (Comparison of current rate and temporal methods) 3. 15 . Accumulated other comprehensive income (OCI) is a line item in the shareholders' equity section of the balance sheet that includes income that is not reported in the income statement. foreign currency translation adjustment. C. Foreign currency translation adjustment, net of nil tax, in the first quarter of 2022 was a loss of RMB4. us Foreign currency guide. Prepare to run foreign currency revaluation. Capital Adequacy. Evaluate solvency c. Foreign currency translation adjustments arise when local or functional currencies are translated to an entity’s reporting currency. S. In the prior example, the rates that were used were global rates, meaning, they. 650. The company's effective tax rate on ail items arfecting. 1. As shown in Exhibit 1, eBay's currency translation adjustments (CTA) accounted for 34% of its comprehensive income booked to equity for. An entity that has committed to a plan that will cause the cumulative translation adjustment for an equity method investment or a consolidated investment in a foreign entity to be reclassified to earnings shall include the cumulative translation adjustment as part of the carrying amount of the investment when evaluating that investment for impairment. It is a critical component of financial reporting for multinational companies that operate in multiple countries and require a consolidated view of their financial results. Transaction. 16. As discussed in FX 5. summarized the following pretax amounts from its accounting records for the year: income before income taxes, $216,000; foreign currency translation adjustment, $6,000; unrealized loss on debt investments, $(14,400); and preferred dividends, declared and paid, $2,400. e. Method Treatmemt of transition adjustment a. Current rate other comprehensive income b. The resulting translation adjustments are not reported in income, but rather accumulated included in other comprehensive income within equity. (a) the currency in which funds from financing activities (ie issuing debt and equity instruments) are generated. Accordingly, translation adjustments are reported in other comprehensive income (OCI). The correct answer is A. GAAP mandates use of the temporal method with translation gains/losses reported in income. 3. Estimate amount, timing and uncertainly of future cash flows d. If you change the account assignment mapping in the currency translation attribute to post to a different FS item system will post the second leg of the adjustment entry to different account. 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 company experienced a negative foreign currency translation adjustment of $330,000 and had an unrealized gain on debt securities of $310,000. 31 December 2016: 0,8562. M – Manual Adjustment. The company's effective tax rate on all. The company’s effective tax rate on all items affecting. Currency translation is the process of converting one currency in terms of another, often in the context of the financial results of a parent company's foreign. If a foreign branch is a QBU and has a functional currency other than the U. These adjustments, in general, reflect the gains and losses associated with the translation of a foreign subsidiary’s financial statements from its functional currency into the reporting currency. When a company has foreign operations, the foreign currency cash flows must be translated into the reporting currency using the exchange rates in effect at the time of the. This column shows the amount resulting from the difference between the consolidated exchange rate that is used on each account and the current exchange rate. Which if the following is true?. Prepare a single, continuous multiple-step statement of comprehensive income for 2021. us Financial statement presentation guide 6. The translation adjustment from translating a foreign subsidiary's financial statements should be shown as. Cameco established a wholly-owned subsidiary in India, Vedant, on 1 January 2012. S. ♦ Currency exchange rate on 5th August: 65 INR = 1 USD & 1GBP= 1. Cumulative translation adjustment (CTA) is an accounting entry that reflects the impact of fluctuations in currency exchange rates on a company’s financial statements. SFAS 52 provides guidance on the translation of operations in hyperinflationary economies under U. In addition, during the year the company experienced a positive foreign currency translation adjustment of $240,000 and an unrealized loss on debt securities of $80,000. See Answer. 11. O gains from the sale of equipment. 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. 7 Let’s first start with the basics. When performing currency translation, different exchange rates such as average and period end rates, as well as formulas, are applied. Choose the correct option. Currency translation converts data from one currency to another. However, some reporting entities have limited reporting units to a single currency after considering the principles set forth in ASC 830. translation adjustment results from the translation of a foreign entity's financial statements from the functional currency to U. Translation Risk: The exchange rate risk associated with companies that deal in foreign currencies or list foreign assets on their balance sheets. 24 $ 0. Dilty concluded that the subsidiary's functional currency was the U. CTD (currency translation difference) = separate component in equity. An entity’s local currency is the currency of the primary economic environment in which the entity operates and generates cash flows. Each of the following items can considered a component of other comprehensive income (OCI) except: Multiple Choice a. 77 it means that USD 1 is worth. S. arrow_forward. In the selection screen, you can also enter the following: You can specify the level of detail of the output list. Currency Translator translates most balance sheet accounts at the year-end exchange rate. Explanation: a. 3. S. Adjustments resulting from the remeasurement process are generally recorded in net income. purchased merchandise from a vendor in England on November 20 for 500,000 British pounds. Palmyra Co. Foreign currency translation adjustments are positively associated with stock returns for firms with barriers to entry in the manufacturing and service industries. Step 4: Compute the debt cash flow and the debt IRR. Certain defined benefit pension items b. You can translate data from the entity’s input currency to any other reporting currency that has been defined in the application. Subject AccountingLink. Therefore, the German subsidiary must adjust its liability to Parent Company A from €6,961,000 to €7,433,000. The debate centers around. . Distinguishing the economic impact of changes in exchange rates on a net investment from the impact of such changes on individual assets and liabilities that are receivable or payable in currencies other than the functional currency ; Translation adjustments are an inherent result of the process of translating a foreign entity's financial. Resulting unrealized gain or loss amounts are posted to the unrealized gain or loss accounts or to the cumulative translation adjustment account. foreign currency translation adjustments in an earnings and book value model and observed that foreign currency translation adjustments are significantly value relevant when their parameter estimates are allowed to vary in the cross-section. NetSuite calculates CTA through consolidation and translation. Question: Exercise 4-11 Comprehensive income [LO4-6] The Massoud Consulting Group reported net income of $1,372,000 for its fiscal year ended December 31, 2018. Foreign currency translation adjustment d. 3. Foreign currency translation adjustments — — 621 Reclassification of cumulative foreign currency translation adjustments to net income upon liquidation of a foreign subsidiary — — 4,193 Total comprehensive income (loss) $ 1,879 $ 970 $ (5,475) Earnings (loss) per share: Basic $ 0. 65) × 50,000 = $2,500. 3. The company's effective tax rate on all items affecting comprehensive income is. To the contrary, a rm that invests in foreign currency will incur a loss when the local currency appreciates. A capital instrument deemed not. Final answer. 8 million (US$0. L - Audit level. Adjustments for currency exchange rate. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 5 Associates and the equity method 64Revaluation 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. The Massoud Consulting Group reported net income of $1, 378, 000 for its fiscal year ended December 31,2021 . GAAP and IFRS differences on this topic and from the example in that module of one item that goes in Accumulated Other Comprehensive Income can you find such treatment in a company's equity section, either a US parent company. Comprehensive income is a statement of all income and expenses recognized during a specified period. Translation adjustments resulting from changes in exchange rates do not affect reporting currency cash flows until the related foreign entity is sold, exchanged, or liquidated. records had been maintained in the functional currency. In determining the translation adjustment when the current rate method is used, dividends declared by the foreign entity in the current year are translated using the exchange rate on the date the _____. 3,624, 0 (A) 40. Foreign currency translation adjustments. This result is due to the exclusion of the translation adjustment when calculating the income under the current method. Along with the organization. 9 Events after the reporting date 47 2. Morton Glantz, Johnathan Mun, in Credit Engineering for Bankers (Second Edition), 2011. The differing operating and economic characteristics of varied types of foreign operations will be distinguished in accounting for them. You carry. This article will discuss some of the key concepts by the use of a simplified example. Temporal Gain or loss in net income. 1. Sign out, and then sign back in. 3 JDW Corporation reported the following for 20X1: net sales $2,929,500; cost of goods sold $1786,995; selling and administrative expenses $585. As discussed above, consolidating a foreign subsidiary usually results in a foreign-currency translation adjustment. The company's effective tax rate on ail items arfecting comprehensive income. recording of goodwill d. Activities. On September 1, 20X1, Cano & Co. Any difference between the two amounts is a translation adjustment. Currency translation adjustment c. Overall, the CTA is an important accounting. 3. Given the lack of guidance in ASC 350 and the judgment required to determine when components should be aggregated, multi-currency reporting units exist in practice. D) all would be included in comprehensive income. Assume that on October 1, 2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. In addition, during the year the company experienced a positive foreign currency translation adjustment of $240,000 and an unrealized loss on debt securities of $80,000. exposed. An entity’s reporting currency is the currency used to prepare its financial statements. Back to Table of Contents . 12 $ (1. Line 23b. Translation adjustments shall not be included in determining net income but shall be reported in other comprehensive income. Current Exchange Rate: The exchange rate that exists at the balance sheet date. Therefore, options a, c, and d are all incorrect and option b is the correct answer. If your business deals in many currencies, the balance of your accounts may fluctuate when the values of foreign currencies fluctuate. Required Assuming a tax rate of 25%, prepare a separate. And now the last section: Translation – Figure 9: Snapshot from SAP ECC. ASC 830-30-45-12 If an entity’s functional currency is a foreign currency, translation adjustments result from the process of translating that entity’s financial. Step 3: Translate cash flows at the exchange rate — draws, repayment and interest cost. 3 FINANCIAL CONSOLIDATIONS AND CURRENCY TRANSLATION Overview This white paper steps through the approach both Microsoft Dynamics AX 2012 and Management Reporter use for consolidations. Foreign currency translation adjustments, a firm-specific measure of exchange rate exposure, can provide a test of the relationship between earnings changes and exchange rate movements at a lower level of aggregation relative to prior studies. The following trial balance of Trey Co. 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. 8. B. ASC 830-30-45-13. The currency translation adjustment (CTA) is the difference between the rates used to calculate the balance sheet accounts and the rate used for the income statement accounts. Finally, currency translation often results in translation adjustments. The company’s effective tax rate on all items affecting comprehensive income is 25%. Foreign currency adjustments; Unrealized gains for retirement obligations;. A functional currency used in the year of adoption must be used for all subsequent taxable years unless permission to change is guaranteed by IRS. P] A. The correct answer is B. Exercise 4-11 (Static) Comprehensive income [LO4-6] The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31,2024 . As a result of foreign currency translations, which are a non-cash adjustment, we reported a foreign currency translation loss of $80,926 and a foreign currency translation loss of $55,780 for the. In addition, during the year the company experienced a positive foreign currency translation adjustment of $360,000 and an unrealized loss on debt securities of $95,000. For example, ASC 830-10-45-2. Accounting. The Massoud Consulting Group reported net income of $1, 376, 000 for its fiscal year ended December 31,2024 . ASC 830, Foreign Currency Matters, governs foreign. 250 7,000 $ 436,968 Comprehensive incomeForeign currency translation adjustment (460) (86) (977) (243) Unrealized net loss on marketable securities (5) — (19) — Comprehensive income 2,866 1,573 7,884 3,058 Less: Comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries 39 41 11 103New Considerations in Taxation of Foreign Exchange Transactions After the 2017 Act. Unrealized gains or losses on derivatives contracts which are accounted for as hedges. Functional Currency Determination: Determining the functional currency of a foreign subsidiary is the first step in translating its financial statements. SECURITIES AND EXCHANGE COMMISSION. In addition, during the year the company experienced a positive foreign currency translation adjustment of $330,000 and an unrealized loss on debt securities of $80,000. B) unrealized gains & losses. The differing operating and economic characteristics of varied types of foreign operations will be distinguished in accounting for them. Foreign currency translation adjustments. The cumulative foreign currency translation adjustments are only reclassified to net income when the gains or losses are realized upon sale or upon complete (or substantially complete) liquidation in the foreign entity. 5 Accounting for long term intercompany loans and advances. When you originally consolidate the data, use the Currency translation tab to select the initial exchange rates that should be used for translation during the. Currency translation converts data from one currency to another. The translation adjustment is an inherent result of this process, in which balance sheet and income statement items are translated at. Next > Surefeet Corporation changed its inventory valuation method. Payment was due in British pounds on January 20. The standard also prescribes how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to. factors to those used under IFRSs to determine the functional currency. 11. FAS 52: Foreign Currency Translation FAS 52 Summary Application of this Statement will affect financial reporting of most companies operating in foreign countries. When a company has foreign operations, the foreign currency cash flows must be translated into the reporting currency using the exchange rates in effect at the time of the. Journal of Accountancy, Vol. Currency Translation vs. 2. Evaluate liquidity b. The current rate method must be used when the foreign currency is chosen as the functional currency. Common Shareholder Equity. A Cumulative Translation Adjustment (CTA) is required in order to distinguish between gains and losses resulting from operations, versus those that have resulted from fluctuations in foreign currency. 4. The company experienced a negative foreign currency translation adjustment of $230,000 and had an unrealized gain on debt securities of $210,000. NetSuite dynamically calculates CTA for each account and then displays the total in the CTA account line. The financial statements of Hello and GutenTag as at 31 December 2016: Prepare consolidated statement of cash flows for the year ended 31 December 2016. Click Enable Features . Foreign currency translation–This is the process of expressing a foreign entity’s functional currency financial statements in the reporting currency. Which of the following items would affect the balance of accumulated other comprehensive income (AOCI)? Multiple Choice. 2 | Understanding ASPE Section 1651, Foreign Currency Translation To help preparers of financial statements and their auditors with Accounting Standards for Private Enterprises (“ASPE”) Section 1651, Foreign Currency Transactions, we’ve summarized the key aspects of the section and offer relevant practical considerations for private mid-market. To be able to. In order to carry out a currency translation, you have to make certain settings in addition to the settings for the foreign currency valuation. e.