What is the Difference Between Translation and Remeasurement?
🆚 Go to Comparative Table 🆚Translation and remeasurement are two concepts related to foreign currency and exchange rates, both involving the conversion of financial results in one currency to another. However, they serve different purposes and have distinct processes.
Translation:
- Focuses on converting the financial results of a subsidiary into the parent company's reporting currency.
- Conducted when the functional currency is different from the reporting currency.
- Also known as the current rate method.
- Used to express financial results of a business unit in the parent company's currency.
Remeasurement:
- Focuses on converting foreign currencies into the subsidiary's functional currency.
- Converts either local currency or foreign currency (or both) into the functional currency.
- Also known as the temporal method.
- Process of converting financial results in another currency into the company's functional currency.
In summary, translation is used to express a subsidiary's financial results in the parent company's reporting currency, while remeasurement is the process of converting financial results in one currency to another within the subsidiary's functional currency.
Comparative Table: Translation vs Remeasurement
Translation and remeasurement are two different processes in the context of data management and currency conversion. Here is a table highlighting the differences between the two:
| Translation | Remeasurement |
|---|---|
| The process of converting text or data from one language to another, often used in software localization, multilingual websites, or documentation. | The process of changing a financial transaction or balance from one currency to another, typically used in financial reporting and accounting. |
| Involves translation tables, scripts, and adapters to manage the conversion process. | Involves exchange rates, accounting standards, and financial systems to handle currency conversions. |
| Helps in understanding and communicating information across different languages and cultures. | Helps in comparing financial data across different countries and currencies. |
| Examples: Translating software documentation from English to Spanish, or converting a website's content from one language to another. | Examples: Converting a company's financial transactions from one currency to another, or adjusting financial statements for different reporting currencies. |
In summary, translation deals with converting text or data from one language to another, while remeasurement focuses on changing financial transactions or balances from one currency to another. Both processes have distinct purposes and applications in various industries.
- Measurement vs Evaluation
- Translate vs Interpret
- Transcription vs Translation
- Transcription vs Translation in Language
- Transaction vs Translation Risk
- Change vs Transformation
- Scale vs Ruler
- Transportation vs Translocation
- Transformation vs Transmutation
- Transmitter vs Transducer
- Interpreter vs Translator
- Cost Model vs Revaluation Model
- Distance vs Displacement
- Inversion vs Translocation
- Transformation vs Transduction
- Sensor vs Transducer
- Remodeling vs Renovation
- Balance vs Scale
- Compensation vs Remuneration