Definicja currency translation difference (EC-CS)

Co znaczy CURRENCY TRANSLATION DIFFERENCE (EC-CS):

The difference resulting from currency translation for any of the following reasons:

Changes to the currency's exchange rate over the course of time, for example between two balance sheet report dates The use of different exchange rates for various balance sheet items and income statement items, for example: the historical rate for investments and investee equity the current rate for the remaining balance sheet and income statement items the average rate for revenue and expense items the current rate for appropriations of retained earnings

Currency translation differences must be taken into account in translated financial statements - otherwise the balance sheet will not be balanced. Currency translation differences can be posted with or without an effect on net income, depending on which differential items you choose.