Cumulative Translation Adjustment

Also found in: Acronyms.

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.
References in periodicals archive ?
The cumulative translation adjustment (CTA) is released into earnings.
In addition, a firm must report the cumulative translation adjustment, the lag cumulative translation adjustment, the transaction gain or loss, net income, and the foreign income tax.
As we have seen, the cumulative translation adjustment is a directionally correct approximation for the change in cashflow caused by FX fluctuations.
The adjustment resulting from translating nonmonetary items denominated in the local currency at the rate in effect at the date of the change is classified as a cumulative translation adjustment component of stockholders' equity.
Prior to the SEC staff's guidance, and with the concurrence of its auditors, the Company recorded the $275 million charge in its balance sheet as of January 1, 2010 as a Cumulative translation adjustment in Other comprehensive income (loss).
EITF Topic D-71 considers the changeover to the euro a change in functional currency but says that the cumulative translation adjustment account should not be changed until there is a disposition of the investment.
However, the effects of these foreign currency transaction gains and losses were offset to a large extent by corresponding charges or benefits in the cumulative translation adjustment in stockholders' investment with no overall economic effect;
This charge resulted from a write down in inventory and equipment, together with the cumulative translation adjustment for Superior Plastics, Inc.
04 par value, 15,000,000 shares authorized, 11,925,086 and 11,574,749 shares issued, and 11,812,493 and 11,450,021 outstanding, respectively 477,003 462,990 Additional paid-in capital 24,775,995 23,965,900 Common stock held in treasury (112,593 and 124,728 shares, respectively) (386,834) (409,439) Retained earnings (accumulated deficit) (10,648,912)(10,226,670) Cumulative translation adjustment (8,112) (3,482) Total stockholders' equity 14,209,140 13,789,299 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $19,060,473 $19,542,341
The foreign currency transaction error resulted from foreign currency translation effects related to inter-company balances being recorded as a component of the cumulative translation adjustment within stockholders' equity (and a component of comprehensive income) rather than in the statement of operations.
Currency fluctuation variances are shown on the Balance Sheet as Cumulative Translation Adjustment and have periodic positive and negative effects on Shareholder's Equity.
01 per share; 30,000 shares authorized; 9,924 and 9,765 shares issued, respectively 100 98 Additional paid-in capital 58,272 58,206 Cumulative translation adjustment 205 98 Accumulated deficit (57,886) (57,248) 3,460 3,301 Less treasury stock, at cost, 145 shares (600) (600) Total stockholders' equity 2,860 2,701 Total liabilities and stockholders' equity $16,133 $17,195 1) September 30, 2003 balance sheet adjusted to reflect the receipt of $500 for the issuance of 167 shares of preferred stock on October 21, 2003.

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