Contains the consolidation translation method that will be used for the account. The translation methodology identifies the currency translation rate to be applied to the account.
There are the following options:
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Average Rate (Manual) - the average rate for the period to be consolidated. You calculate the average either as an arithmetic average or as a best estimate and enter it for each business unit.
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Closing Rate - the rate which prevails in the foreign exchange market at the date for which the balance sheet or income statement is being prepared. You enter the rate for each business unit.
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Historical Rate - the rate of exchange for the foreign currency which prevailed when the transaction took place.
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Composite Rate - the current period amounts are translated at the average rate and added to the previously recorded balance in the consolidated company. This method is typically used for retained earnings accounts because they include amounts from different periods and are thus a composite of amounts translated with different exchange rates.
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Equity Rate - similar to Composite. The posting of the differences will be to separate G/L Accounts.
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