When a subsidiary's functional currency differs from the group's presentation currency, a Currency Translation Adjustment arises. BrizoSystem calculates it automatically — with historical rates by account, retained earnings roll-forward by year, and a monthly journal posted every period.
Finance teams who have dealt with multi-currency consolidation know this immediately. Getting CTA right means applying different rates to different account types — and rolling retained earnings forward correctly, year by year.
Applied to every account — ignoring that fixed assets, equity, and P&L items each require different treatment under IFRS and US GAAP.
One rate applied to the whole retained earnings balance — not rolled forward year by year at each period's correct closing rate.
No distinction between share capital, reserves, and prior-year retained earnings — each requires a different rate treatment.
CTA is only corrected at year-end — the balance is inaccurate for 11 months of the year.
Input historical rates at account level. Fixed assets at acquisition rate. Monetary items at closing rate. P&L at average rate. Each treated correctly.
Carried forward year by year at each period's correct closing rate — opening balances always accurate.
Share capital, reserves, current-year profit, and prior-year retained earnings — each translated at the correct rate for the correct period.
CTA journal posted every month. Your balance is accurate throughout the year — not just at year-end.
Configure your CTA reserve account, set equity historical rates and retained earnings rates once per entity — and BrizoSystem posts CTA journals automatically every month as part of the consolidation run. No manual journals. No spreadsheet formulas. No risk of errors carrying forward.
BrizoSystem calculates CTA automatically — and gives you a complete reconciliation view so you can verify, adjust, and post with confidence every period.
Every CTA journal entry is visible on a dedicated reconciliation page. Trace each line back to its source rate and account, verify the balance is correct, and make any adjustments before publishing your group report. Full visibility — no black box.
Need to post an additional entry outside the automated CTA calculation? BrizoSystem supports manual journal entries so your finance team retains full control over any period-specific adjustments. All manual journals are tracked separately in the reconciliation view.
Accurate CTA isn't optional for audited, investor-backed, or cross-border groups. BrizoSystem makes it automatic and verifiable every period.
Boards, banks, and investors expect accurate CTA in your group statements. BrizoSystem produces it automatically so your consolidated financials stand up to scrutiny from day one.
CTA is calculated and journalled every month — not just corrected at year-end. Your group reports reflect an accurate CTA balance throughout the year.
Every CTA journal entry traces back to its source rate and account. Nothing is approximated or hidden — the reconciliation page gives you a complete audit trail every period.
CTA and Accounting Standards are included in every Pro subscription. No add-ons, no extra setup fees. Start your free trial and explore both features with demo data today.
Also in Pro: Accounting Standards →
Historical rates by account, retained earnings roll-forward, monthly journals, and a full reconciliation view. Produced automatically, verifiable every period.