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Cumulative Translation Adjustment (CTA)
Recording the change in equity due to translating a foreign branch's books into the home currency.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment in Subsidiary | Asset (+) | 3,000.00 | - |
| Translation Reserve (OCI) | Equity (+) | - | 3,000.00 |
💡 Accountant's Note
When a Jordanian company has a branch in the UK (GBP), the change in value of that branch due only to exchange rates is recorded in 'Other Comprehensive Income' (OCI).
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.