Foreign currency translation, or multi-currency consolidation, is the process of converting a range of finances in different money systems into a single form of currency.
Information from all the different operating entities must be available in one place for consolidation. You also need to track appropriate foreign exchange rates for different points in time and different currency combinations using different rules for different accounts and time periods.
The easiest way to consolidate across multiple entities in different currencies is to use specialist software that can automatically apply all the appropriate IFRS rules while giving you traceability and flexibility. ScaleXP is an excellent and cost effective solution for efficiently consolidating divisions across countries and/or business entities.