We zeroed out the trial balance of a foreign subsidiary in its local currency. When we run the separate TB of the foreign subsidiary, the balances are all 0 which is correct. But when we run the consolidated balance sheet per subsidiary, there are still balances left in share capital, retained earnings and CTA. I understand where these balances come from which are due to the different historical exchange rates used for share capital and retained earnings (recognition and reversal). Is it possible to zero it out as well in the consolidated TB? Should we force the historical exchange rate in the period in which the reversal was posted?

Those differences are from historical FX rates. Consolidated TB pulls values at historical rates, so zeroing locally won’t clear CTA or equity lines. Best practice is not to force rate, so instead, post a CTA adjustment JE if you truly need to zero them.

Thanks!