E150: Currency translation Difference in Investments

This automatic journal is useful both when investments are stored in the local currency and when they are stored in the group currency. If you store investments in the local currency, you may need to adjust the shareholdings in subsidiaries. If you store investments in the group currency, you may need to adjust the share capital. You can also follow up on currency translation differences on other equity accounts. In both cases, the original investment by the parent is compared to the acquired amount in local currency translated to the current rate (which rate depends on the coding of the accounts).

A pre-requisite for calculating currency translation difference in investments is that you enter accurate accounts used in the investment register ("From Accounts" in the control table) in both the company’s local currency and the parent’s currency (or the selected currency if that differs from the parent’s currency).