Detailed CTA

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A CTA (Cumulative Translation Adjustment) is a line in an accounting statement that deals with gains and losses caused by exchange rate changes. This ensures that financial reports are as accurate as possible and reflect the true economic health of the company.

At Accountfy you can view detailed conversions per Management Structure, taking a standard exchange rate as parameter.


Configuring an exchange rate for CTA

According to instructions in CPC 02, the closing exchange rate allows to calculate exchange rate variations, resulting from the difference between conversion of revenues and expenses, exchange rates in force on the transaction dates (or average rates) and the conversion of Assets and Liabilities by the exchange closing rate.

In the platform, the selected rate will serve as basis to calculate the difference between exchange rates of the structures.

To configure the CTA, access the contextual menu of the Economic Group in the My Groups home screen and select Edit Economic Group. At the end of the modal, a list with the registered exchange rates will be shown. For an assertive CTA calculation, it is recommended to choose the closing rate, as explained above.

If there are no previously registered exchange rates, a message will appear, as in the image, requesting to register them in the Consolidation Module. Access the article Consolidation Scenario to see how to register exchange rates.

Enabling detailed CTA analysis

In the Financial Statements you can enable a detailed visualization of the CTA in each Management Structure. There are two ways to select it to be displayed in the FSs.

The CTA can only be enabled in Economic Groups for companies with multiple currencies.

When you access the menu of the module indicated by the icon, click on preferences, and select the option Detailed CTA, as shown in the image.

The second way to activate CTA display is in the Financial Statements module by clicking on the right mouse button in the first column of the DRE table, Cash Flow or Equity Balance and selecting the option Enable CTA.

These actions enable to view the daily gross exchange rate variations and nominal CTA values, in columns, as shown in the figure below.

Note that in the Cash Flow and Balance Sheet tables the monthly accrued CTA value is specified in a standard line.

At the end of each Management Structure line, you can open the detailed account breakdown by clicking on the icon . A detailed CTA view will also be available.