Balance Retained Earnings and CTA of an account even after full balance transfer

AI generated answer (using internal Slack threads):

The Cumulative Translation Adjustment (CTA) is a part of the balance sheet that captures the foreign currency impact of translating a balance sheet to the reporting currency. It doesn't settle but keeps accumulating over time due to foreign exchange fluctuations. If you are seeing an unusually large amount in the CTA, it could be due to incorrect elimination. For instance, there might be old manual entries in the Elimination book to force the balance, or duplicate entries due to Period Adjustment Closing. To rectify this, you could check the following: 1. Matching dates of non-advanced intercompany entries and transactions. Sometimes, cash transfers between subsidiaries are recorded on separate entries with different dates (date initiated vs. settled). 2. Ensure the checkbox for Elimination is available on the form and checked on relevant transactions and entries. As for the question about posting the automatic CTA calculation to the income statement rather than the balance sheet, it's important to note that the CTA is meant to account for varying consolidation rate differences between balance sheet account types. Therefore, it should be booked on the balance sheet to ensure the consolidated balance sheet is balanced. The only times you would see CTA on an income statement is when there is a liquidation of a subsidiary and the CTA balance is journaled out of the balance sheet as part of the liquidation process. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******