Non-Profit

Foreign Currency Translation — Field Office

Translating a field office's monthly activity from USD to JOD for consolidation.

Account NameTypeDebit ($)Credit ($)
Program Expense (Translated)Expense (+)14,200.00-
FX Translation Adjustment (OCI)Equity (+/-)-200.00
Cash / Intercompany Payable (USD)Asset/Liability (-)-14,000.00

💡 Accountant's Note

Field offices report in their local currency. At consolidation, exchange rate differences between the transaction date and reporting date create a cumulative translation adjustment recorded in net assets.

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