FX rates definition

Introduction

To complete the ownership structure register setup, FX rates must be defined. This is necessary every time the shareholding relationship involves two entities with different currencies or two entities that use a currency other than the consolidation currency.

CCH Tagetik uses these FX rates to generate financial investment eliminations.

FX rate types in relation to events

FX rate type	Description
Generic FX rates	FX rates are associated with the event that the system uses to generate the financial investment eliminations. FX rates are used by the accounts specified in the Financial investments and Net equity tabs in the event details.
Account specific FX rates	These rates override the FX rates for individual accounts inserted in the ownership structure register for the event. This override may be necessary in order to reconstruct consolidated accounts prepared using other consolidation tools or to set up a situation of historic FX rates that would be impossible manage using a single event FX rate.

For details, see the Event Data page.

FX rates are used by the FX Rate Loading procedure and for converting financial investment and Net equity elimination journals into the consolidation currency. See .

Note: it is not necessary to insert FX rates for derived currencies. The fixed coefficient indicated on the list is always valid in relation to the reference currency.