Cumulative Translation Adjustment - CTA
- Cumulative Translation Adjustment - CTA
An entry in the comprehensive income section of a translated balance sheet summarizing the gains/losses resulting from varying exchange rates over the years. A CTA entry is required under the Financial Accounting Standards Board (FASB) No.52 rule as a means of helping investors differentiate between actual operating gains/losses and those generated via translation.
By knowing what a company has earned or lost through its day-to-day business operations, rather than from an accounting practice, investors are better able to make sound financial decisions. Cumulative Translation Adjustments are an integral part of the financial statements for firms with international market exposure.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
cumulative translation adjustment account — cumulative translation adjustment ( CTA) account An entry in a translated balance sheet in which gains and/or losses from translation have been accumulated over a period of years. The C.T.A. account is required under the FASB No. 52 rule.… … Financial and business terms
Cumulative Translation Adjustment (CTA) account — An entry in a translated balance sheet in which gains and/or losses from translation have been accumulated over a period of years. The CTA account is required under the FASB No. 52 rule. The New York Times Financial Glossary … Financial and business terms
CTA account — cumulative translation adjustment ( CTA) account An entry in a translated balance sheet in which gains and/or losses from translation have been accumulated over a period of years. The C.T.A. account is required under the FASB No. 52 rule.… … Financial and business terms
CTA — See commodity trading advisor The CENTER ONLINE Futures Glossary See: cumulative translation adjustment account. Bloomberg Financial Dictionary Also refers to commodity trading advisor. Bloomberg Financial Dictionary See Commodity Trading… … Financial and business terms
