Definicja temporal translation difference

The fluctuations in exchange rates during the course of time cause the currency translation of the value of a specifc asset to produce different results in a second currency.

The difference between these two values is called a temporal translation difference.

Example

When translating fixed assets at the current rate, there is a difference because of the swings in exchange rates between the value of the closing balance of year n and the value of the opening balance of year n+1.