What is the difference between Revaluation, Translation & Consolidation? Are they independent /dependent in some way or the other?

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Prakash

  • Jul 30th, 2011
 

• Revaluation: adjusts asset or liability accounts that may be materially understated or overstated due to a significant fluctuation in the exchange rate between the time the transaction was entered and the time revaluation takes place.
• Translation: restates an entire set of books or balances for a company from the functional currency to a foreign currency
• Consolidation: The combining of separate companies, functional areas, or product lines, into a single one. Differs from a merger in that a new entity is created in the consolidation.

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