Nothing lost in conversion
Foreign exchange and currency translations become issues for entities when they conduct business through a foreign operation, such as a subsidiary, associate company, branch or joint venture or where entities enter into transactions denominated in foreign currencies.
The different types of currency translations include:
- Converting many currencies to a single currency
- Converting a single source currency to many currencies
- Converting many currencies to many other currencies
OLAP Office™ is fully aware of the different currency translation approaches adopted within the Microsoft Analysis Services (OLAP) environment. However, the approach adopted by OLAP Office™ is by far the most flexible and efficient approach in the Analysis Services environment.
For example, with one formula, OLAP Office™ can translate any combination of world-wide currencies into a base reporting currency, with translation taking place using either spot, forward, average or closing exchange rates. The reporting currency can in turn be translated into any other currency.
- Translation of income statement accounts at the average exchange rate
- Translation of the balance sheet at the closing rate of exchange
- Automatic calculation of “exchange differences” or “translation adjustments”
- Retranslation of the base reporting currency into any other currency
- Translation of any currency, including the European Monetary Unit
- Maintenance of exchange rates for all world-wide currencies
- Maintenance of actual, budget and forecast exchange rates and the translation of any foreign currencies using the respective rates
- Updating an exchange rate automatically updates any calculated translations immediately
- Translation of foreign transactions into the required base currency