Definicja currency translation difference (FI-LC)

Co znaczy CURRENCY TRANSLATION DIFFERENCE (FI-LC):

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

A change in a currency's exchange rate over the course of time - for example, between two balance sheet report dates The use of different exchange rates, such as the historical and the current rates, during the translation of the individual assets, liabilities, revenue and expenditures

These differences must be taken into account in the translated financial statements to ensure that the balance sheet balances.

Currency translation differences can be posted with or without an affect on net income, depending on the differential items that are chosen.