Foreign Currency · Track 3 · Tutorial 1 of 2
Translate goodwill and the NCI’s share of the CTA
Two parts of the translation go beyond a company’s own figures. When the group owns less than 100%, part of the CTA belongs to the NCI. And goodwill on a foreign company is that company’s asset, so it moves with its currency too.
1Know where each part goes
| The NCI’s share of the CTA | Company B’s CTA arises on all of its net assets, and 20% of them belong to its minority shareholders. Each month, BrizoConsol moves the NCI’s percentage of the CTA out of the reserve and into the NCI share of CTA account. |
|---|---|
| Goodwill retranslation | Goodwill on Company F is held in MYR. Each month it is retranslated at the closing rate, and the change goes to the CTA reserve. Where the NCI was measured at fair value, the NCI’s own part of the goodwill moves too, and its change goes to NCI Share of CTA. |
2Set up the NCI share of CTA account
- Select Your Group, and open Ownership & Equity → Ownership.
- Click the Posting accounts icon beside Group structure, and choose the account for NCI - share of CTA — 3620 NCI Share of CTA — or create it with + Create.
- Click Save.
The account is needed as soon as a company with an NCI is translated; until it is chosen, it is listed under Still to choose. Classify it on Non-Controlling Interest on the Accounting Standard page, so it is part of the NCI on the IFRS statements.
3See the NCI’s share posted
- Open Review → Elim. & Journals Report for Oct 2026, and search for NCI-AUTO-CTA.
- Click Auto NCI CTA Oct 2026 (Company B) to see its lines.
In October, Company B’s CTA is 1,500.00. The entry debits 3500 CTA Reserve and credits 3620 NCI Share of CTA with 300.00, the NCI’s 20%. When the CTA is negative, the entry runs the other way.
4See goodwill retranslated
- In the same report, search for NCI-AUTO-GWFX.
- Open October’s entry for Company F.
Company F’s goodwill of SGD 150,000 was MYR 495,000 at September’s closing rate of 3.3000. At October’s 3.3600 it is SGD 147,321.43, so the entry credits goodwill and debits 3500 CTA Reserve with 2,678.57. There is one entry a month from the month after the purchase, and none for a month the rate doesn’t change.
Only goodwill BrizoConsol recognised from an ownership record is retranslated. Goodwill posted by journal stays at the amount posted.
Company F is wholly owned, so all of its goodwill is the owners’. For a partly owned foreign company, it depends on the NCI measurement chosen on the ownership record that gave control:
| NCI measured at | Goodwill | Where the monthly change goes |
|---|---|---|
| Its share of the net assets | The owners’ only | All of it to the CTA reserve. |
| Fair value | Includes the NCI’s own goodwill: the NCI’s fair value less its share of the net assets | The owners’ part to the CTA reserve, and the NCI’s part to NCI Share of CTA, on a line described Auto NCI share of goodwill retranslation. The two parts always add up to the change in goodwill. |
If the group has no NCI Share of CTA account, the NCI’s part stays in the CTA reserve with the owners’, as the NCI’s share of the CTA does. When control is lost, the NCI’s part leaves with the rest of the NCI, and only the owners’ part is recycled to profit or loss.
5Check both on the reports
- Open the group’s Balance Sheet for Oct-2026.
- Open Ownership & Equity → NCI Report for YTD and Oct-2026, and click Company B’s row under NCI movement by subsidiary.
Check
3620 NCI Share of CTA holds 20% of Company B’s CTA to date, and the NCI Report includes it in Company B’s NCI, in its Share of CTA column. Goodwill for Company F is MYR 495,000 at October’s closing rate: SGD 147,321.43.
On the IFRS statement of profit or loss and other comprehensive income, the NCI’s share of the exchange differences is on its own line, Non-Controlling Interests Share of CTA, and the NCI’s part of total comprehensive income is shown on its own line too.
6If something goes wrong
| No NCI-AUTO-CTA entries | NCI - share of CTA isn’t chosen in Posting accounts, or the company has no NCI or no CTA. |
| The NCI’s share is the wrong percentage | Check the company’s ownership records and their months. |
| Goodwill stays at the acquisition amount | The company’s currency is the group’s, no Goodwill account is chosen under Totals and accounts for this company, the group has no CTA reserve, or the goodwill was posted by journal. |
| Missing closing exchange rate for the retranslation of goodwill | Add the closing rate for the month named, on Exchange Rates. |
Want more detail? See the documentation