Definition of Currency translation:
Many companies, especially large ones, are multinationals and operate with different currencies in different parts of the world. When a company sells in a foreign market and then sends the payments home, the revenue should be reported in the parent's currency. In rare cases where a company has a foreign subsidiary, for example in Brazil, which does not transfer money to the parent company, the subsidiary's operating currency is real.
Currency conversion translates the financial results of the parent company's foreign subsidiaries into its active currency, the key economic environment in which companies develop and spend cash. For transparency reasons, companies operating abroad will be required to disclose their accounting numbers in the currency.
Currency exchange values for foreign currency values. To do this, the company must have information such as currency and exchange rates. Currency conversion is especially important for multinational companies or companies that can operate in areas with different local currencies. For example, a large company planning its annual revenue estimates may use a currency exchange to convert the currency used at its headquarters to the appropriate local currency (e.g. (US dollars to euros) The company can convert its subsidiaries' overseas income as well as other overseas operations into US dollars to compare prices with the company's domestic portion. See also group currency.
How to use Currency translation in a sentence?
- Currency translation uses the exchange rates at the end of the reporting period for assets and liabilities, the exchange rate at which income or expenses are recognized as profit or loss, and the historical exchange rate when in equity. Is recognized.
- The losses and losses incurred in the currency translation are listed in the equity of the company's stable shareholders.
- When converting currency, the financial results of subsidiaries outside the parent company are translated into their active currency.
- Companies must report in the neighborhood currency in which they generate and spend money.
Meaning of Currency translation & Currency translation Definition