A method of currency translation.
This method distinguishes between the "straight spot-rate method" and the "modified spot-rate method":
Straight spot-rate method -All the balance sheet and income statement item amounts in foreign currency are translated into group currency on the closing reporting date using the exchange rate valid on that date.
Since this a straight translation of values from one currency to another, there are no currency translation differences.
Because of the uniform translation using the spot (current) exchange rate, the structures of the balance sheets and income statements of the consolidated individual statements remain unchanged.
Modified spot-rate method -There are several forms of the modified spot-rate method.
The most recommended modified method is where the income statement is viewed as a time period statement and is not translated using the spot rate but rather using the rate valid at the time the transaction took place or, to simplify things, an average rate on a yearly, quarterly or monthly basis.
Another modified method involves the translation of equity values.
Instead of the spot rate, a historical rate can be proposed to prevent, among other things, the translation from affecting the consolidation of investments.
More terms such as spot rate method of currency translation in Dictionary S.
- Manual Subprocessing Schema:
- Help processing schema, the subprocessing schema contains additional information for an operation. Subprocessing schemas are classified as follows: Order 1 subprocessing schema Contains genearal spot rate method of currency translation definition.
- Manual Syntactical Character Set:
- Help that are the same in all code pages used in the SAP system and in all code pages based on ASCII character sets. The characters in the syntactical character set are mapped even in Asian languages spot rate method of currency translation explain.
- Manual Service Request (CS):
- Help notification requesting the service or customer service department to perform a particular activity. The activity is not intended to repair a malfunction or damage; a sales notification would be spot rate method of currency translation what is.
- Manual Scenario Progression (IS-B-SA-ALM):
- Help scenarios that makes it possible to depict a complex progression of market data. For each scenarion in the progression, the price parameters (for example, interest rate) are found by interpolating spot rate method of currency translation meaning.
- Manual Substring (BC-CST):
- Help needed by the SAProuter to establish a route connection. A substring contains the host name, port name and password, if one was passed. Substring syntax: /H/ is the host name /S/ is the service spot rate method of currency translation abbreviation.
