Hi All. Asking for the best practice. If proven that the balance for "Cumulative Translation Adjustment-Elimination (CTA-E)" are mostly related to foreign currency translation adjustments, how do you usually settle it? the amount keeps getting accumulated in our account at the moment.

CTA doesn’t settle. It is simply the foreign currency impact of translating a balance sheet to the reporting currency.

Thanks @Jamie Houselog . Even though it is meant for elimination (cta-e)? For the background, we do send fund to one of the entities in different currency (euro, our functional currency is usd), and the cta-e balance keeps increasing over time due to forex fluctuations. (Though i have to investigate yet if it is really correct as I’ve inherited this concern from the third party consultant 😅)

If you expect it to eliminate at the parent, rolled-up level, I would check: 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. The checkbox for Eliminate is available on the form and checked on relevant transactions and entries.

Thanks again @Jamie Houselog. I did further check and the big amount was due to incorrect elimination. We have some old manual entries in the Elimination book to force the balance, and duplicate entries due to Period Adjustment Closing. 😆