Consolidation (EC-CS)

Difference resulting from currency translation due to any of the following reasons:

• A change in a currency's exchange rate over the course of time, say between two balance sheet report dates
• The use of different exchange rates, such as the historical and the current rates, during the translation of the individual assets, liabilities, revenue and expenditures

These differences must be taken into account in the translated financial statements to ensure that the balance sheet balances.

Currency translation differences can be posted with or without an affect on net income, depending on which differential items are chosen.