OCI tracked by component, every period
Other comprehensive income tends to sit in a side schedule that only gets attention at quarter end, when someone has to explain the movement in accumulated OCI. As you close each period, the Accounting Agent tracks each component and keeps the roll-forward tied to the GL.
What the Accounting Agent prepares
- An AOCI roll-forward by component: foreign currency translation, pension adjustments, and unrealized gains and losses
- Translation adjustments calculated for each foreign subsidiary, using the rates and method you define
- Reclassifications out of AOCI captured with their related entries
- Drafted OCI entries where your process calls for them
- Differences between the schedule and the GL, flagged for review
How it works
- Pull the data. Subsidiary balances, exchange rates, and investment or actuarial inputs come from your ERP and connected sources.
- Prepare the work in your logic and format. The Accounting Agent calculates each component with your methods, in your roll-forward format.
- Review and approve. You adjust any judgment items and approve. Any entry posts to your ERP only after approval.
What stays in your control
- Rates, methods, and actuarial or valuation inputs stay with your team
- No entry posts without approval
- Every movement traces to the balance, rate, or valuation behind it
Standard note
ASC 830 governs how a foreign subsidiary's financial statements are translated, with the resulting translation adjustment reported in other comprehensive income (IAS 21 under IFRS).
FAQ
What goes into other comprehensive income?
OCI captures gains and losses that bypass net income, such as foreign currency translation adjustments, certain pension adjustments, and unrealized gains and losses on some investments and hedges. They build up in accumulated OCI within equity.
How is the currency translation adjustment calculated?
It is the difference that arises when a foreign subsidiary's assets and liabilities are translated at the period-end rate, income and expenses at average or transaction rates, and equity at historical rates. The Accounting Agent runs that calculation with your rates each period.
Does Ledge produce the actuarial pension figures?
No. Actuarial figures come from your actuary. The Accounting Agent records them in the schedule, tracks the movement, and ties it to the GL.
