The GATHER Platform handles multi-currency translation across each of its modules. The approach taken and key terms are described below:
Group Financial Reporting
This module takes the following approach:
Preparing the Consolidation - including in the Working Papers tile
For the purposes of preparing the consolidation, financial data from individual legal entities (in Xero/QuickBooks) are translated into the chosen Group Reporting Currency at the following exchange rates:
Profit and Loss Account - Average Rate for the month
Balance Sheet - Closing rate for the month
Auto-journals pick up data from the Xero/QuickBooks entity data and convert using the same FX approach.
Manual Journals are applied in the Group Reporting Currency - so are not subject to translation by GATHER at this stage.
Preparing Consolidated Reports
Consolidated Reports may be prepared in the Group Reporting Currency - in which case no further FX translation is required.
Alternatively, the User may choose a Report Presentation Currency - this means that financial data (including consolidation and adjustment journals where applicable) is converted from the Group Reporting Currency into the Report Presentation Currency at the following exchange rates for presentation purposes:
Profit and Loss Account - Average Rate for the month
Balance Sheet - Closing rate for the month