ONESOURCE
Uncertain Tax Position App
Currency Translation Adjustments in the UTP Application
Currency Translation Adjustments (CTA)
Components of CTA
•
Beginning Balances - Payable & Deferred
– CTA to retranslate the beginning balances from the
prior period Ending Spot Rate to the current Ending
Spot Rate
•
P&L Activity
– CTA to adjust the P&L Activity that impacts the
Ending Payable & Ending Deferred Balances that
was recognized in the P&L at a Weighted Average
Rate and is retranslated at the Ending Spot Rate in
the Ending Balance
2
CTA on Beginning Balances
Change in Spot Rate on the Payable & Deferred
Balances
•
Dataset with rolled over beginning balances
will be treated as follows:
– In reports the Beginning Balances column will be
first translated at Beginning Spot FX
– CTA will be calculated by taking the difference
between Beginning Balances at Ending Spot FX
and Beginning Balances at Beginning Spot FX
– If there is no Activity then the Sum of the
Beginning Balances at Beginning Spot FX and
the CTA will equal the Ending Balances at
Ending Spot FX
3
CTA on P&L Activity
Difference in Weighted Average and Spot Rate on Activity during
the period
•
Activity that impacts the Payable & Deferred Ending
Balances that is entered for the period will be treated as
follows:
– In reports the Change column will be first translated at
Weighted Average FX
– CTA will be calculated by taking the difference
between Change at Ending Spot FX and Change at
Weighted Average FX
– If there is no Beginning Balance then the Sum of the
Change at Weighted Average FX and the CTA will
equal the Ending Balances at Ending Spot FX
4
Sample CTA Calculations
Beg Balance
Report Results:
Local
Position 1
Position 2
CTA Beg Bal
CTA Change
(175,000)
(175,000)
-
(2,568)
(291,667)
(291,667)
Amounts In Local
(1,284)
(175,000)
Beg Spot FX
@ Beg Spot FX
0.5
(2,568)
1,141
End Balance
-
(1,284)
(175,000)
(176,284)
97,222
97,222
1,141
97,222
98,364
(1,427)
(194,444)
(195,871)
1,141
(2,568)
Total CTA
-
(1,284)
(1,284)
Reporting
Position 1
Position 2
Change
Calculations Broken Out:
0.5
Beg Spot FX
0.6
WA FX
0.9
End Spot FX
WA FX
@ WA FX
End Spot FX
@ End Spot FX
CTA
(176,284)
0.5
(2,568)
(2,568)
0.6
(291,667)
(291,667)
0.9
(1,427)
0.9
(194,444)
(195,871)
1,141
97,222
98,364
0.6
(291,667)
(195,871)
5
Payable Report with Sample Calculation
6
Tabular Rollforward Report with Sample
Calculation
7