Double Counting Foreign Currency Translation

Please indicate the guidance under which the initial CTA was performed under. I am guessing the local currency is the USD and the reporting currency is GBP. The CTA in the balance sheet suggest that the translation method was employed; therefore it is reversed only upon a transaction. If you want to change the measurement method, then I suggest that you discuss it with your auditors.

Hi Alpha,
I'm using the closing rate method when translating monthly management accounts. Your response clarifies the issue in that the build up is reversed once the assets/liabilities are liquidated and there is a net fx gain/loss remaining in reserves of which FCTR /CTA is a component.