Cumulative Translation Adjustment - CTA
Definition of '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. |
|
Investopedia explains 'Cumulative Translation Adjustment - CTA'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. |
Related Definitions
Articles Of Interest
-
Corporate Currency Risks Explained
Transaction, translation and economic risks can affect a company's balance sheet. -
Mergers And Acquisitions: Understanding Takeovers
In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game. -
Interpreting A Company's IPO Prospectus Report
Learn to decipher the secret language of the IPO prospectus report - it can tell you a lot about a company's future. -
After A Big Recovery Rally, It's Up To Renew Blue For Best Buy
Investors have bought Best Buy's story, but this quarter shows that a lot of work remains to be done -
If You Don't Mind Volatility, Deere Could Still Do Alright
Though Deere's shares sold off after earnings, the business model is sound and rolling along. -
Agilent Isn't Making It Easy On Investors
Core operating performance at Agilent needs to improve -
Consumer Spending As A Market Indicator
What people buy and where they shop can provide valuable information about the economy. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Overheated Expectations Send Rackspace Investors To The Torture Chamber
Absent a real competitive moat, it's hard to make sense of Rackspace's valuation. -
Mondelez Isn't As Good As Nestle, But Priced Like It Is
Investors seem to bullish on Mondelez, given the relative performance at Kellogg and Nestle.
Free Annual Reports