Oracle Oracle Financial Consolidation Hub, User Manual, Page: 95 / 220

Setting Up Translation 12-3
amount. Historical rates or amounts thus override ending and average
rates.
Income Statement Mode
You can specify whether you want Financial Consolidation Hub to use the YTD or PTD
to translate income statement account balances.
A YTD specification translates ending balances using the ending rate. The period
activity is then calculated from the difference between the current period's ending
balance and the prior period's ending balance
A PTD specification translates current period activity using the average rate. The
ending balance is then calculated by summing the translated period activity and the
prior period's translated ending balance.
The most common option in accordance with FAS 52 and IAS 21 is to use the PTD
option for income statement accounts.
Note:
Regardless of the income statement mode you choose, if you
enter an historical rate or amount for a given income statement account,
Financial Consolidation Hub translates that account using the historical
rate or amount. Historical rates or amounts thus override ending and
average rates.
Use as Default
You can designate a translation method as the default by selecting an option from the
Use as Default drop-down list in the Create Translation Method page.
When you construct a consolidation hierarchy, the default translation method is
automatically assigned to the relationship attributes between a consolidation entity and
its child operating entities. You can change the default translation method.
Enable Translation Method
If you select No from the Enable Translation Method drop-down list in the Create
Translation Method page, the translation method you defined is unavailable when you
create a consolidation hierarchy. If a translation method is disabled, it can no longer be
used in the construction of a new consolidation hierarchy.
Note:
A disabled translation method will continue to be used in
existing consolidation hierarchies that already include it and will
continue to be processed during the Consolidation Process.