Why this is mistaken
CTA is an accumulated reporting-currency effect created by translating statement elements at different rates. It is generally part of AOCI, not cash and not current operating income. The correction builds a rollforward from opening CTA through the current translation effect and any supported ownership allocation or release. Disposal and deconsolidation facts must be analyzed before reclassification; closing a site or settling one receivable is not enough.
Where to watch
When this mistake may appear
- The CTA balance is cash trapped overseas.
Check your work
Your work may contain this mistake if:
- Describes accumulated OCI as a cash balance, current earnings item, or direct measure of economic exposure.