Translation vs. Revaluation — What's the Difference?

Affects multinational corporations during consolidation.

Affects financial metrics like depreciation and taxes.

Managed by accounting standards like IFRS and GAAP.

Adjusts asset values to reflect current market conditions.

Influenced by changes in exchange rates.

Requires assessment by valuation experts.

Process of converting financial accounts from one currency to another.

Ensures assets are not carried at values higher or lower than fair value.

Part of regular financial reporting.

Can lead to an increase or decrease in asset values.

Translation is the communication of the meaning of a source-language text by means of an equivalent target-language text. The English language draws a terminological distinction (which does not exist in every language) between translating (a written text) and interpreting (oral or signed communication between users of different languages); under this distinction, translation can begin only after the appearance of writing within a language community.

Revaluation is a change in a price of a good or product, or especially of a currency, in which case it is specifically an official rise of the value of the currency in relation to a foreign currency in a fixed exchange rate system. In contrast, a devaluation is an official reduction in the value of the currency.

The act or process of translating, especially from one language into another.

To make a new valuation of.

The state of being translated.

To increase the exchange value of (a nation's currency).

A translated version of a text.

The process of altering the relative value of a currency or other standard of exchange.

(Physics) Motion of a body in which every point of the body moves parallel to and the same distance as every other point of the body.

A reassessment of the value or worth of something; a reappraisal or reevaluation.

(Biology) The process by which messenger RNA directs the amino acid sequence of a growing polypeptide during protein synthesis.

The application of compound growth to the value of a pension benefit, specifically from the date of the member leaving the scheme (for example, moving to a different employer) to the date that the member starts receiving the benefit (typically retirement).

The act of translating, in its various senses:

A second or new valuation.

The conversion of text from one language to another.

A new appraisal or evaluation

(translation studies) The discipline or study of translating written language (as opposed to interpretation, which concerns itself with spoken language).

The conversion of something from one form or medium to another.

A motion or compulsion to motion in a straight line without rotation or other deformation.

(mathematics) A relation between two mathematical figures such as a straight line where the coordinates of each point in one figure is a constant added to the coordinates of a corresponding point in the other figure.

(genetics) The process whereby a strand of mRNA directs assembly of amino acids into proteins within a ribosome.

(physics) A transfer of motion occurring within a gearbox.

The automatic retransmission of a telegraph message.

The conveyance of something from one place to another, especially:

(countable) The product or end result of an act of translating, in its various senses.

The act of translating, removing, or transferring; removal; also, the state of being translated or removed; as, the translation of Enoch; the translation of a bishop.

The act of rendering into another language; interpretation; as, the translation of idioms is difficult.

That which is obtained by translating something a version; as, a translation of the Scriptures.

A transfer of meaning in a word or phrase, a metaphor; a tralation.

Transfer of meaning by association; association of ideas.

Motion in which all the points of the moving body have at any instant the same velocity and direction of motion; - opposed to rotation.

A written communication in a second language having the same meaning as the written communication in a first language

A uniform movement without rotation

The act of changing in form or shape or appearance;

(mathematics) a transformation in which the origin of the coordinate system is moved to another position but the direction of each axis remains the same

(genetics) the process whereby genetic information coded in messenger RNA directs the formation of a specific protein at a ribosome in the cytoplasm

Rewording something in less technical terminology

The act of uniform movement

Translation is required whenever a company needs to report the financials of foreign operations in the parent company's currency.

The risks include foreign exchange fluctuations which can result in significant gains or losses in financial reporting.

Yes, revaluation can lead to both increases and decreases in asset values depending on market conditions.

The main purpose is to consolidate financial statements from various countries into a single currency for reporting.

Triggers include significant changes in market values, regulatory changes, or business restructuring.

Asset revaluation is typically performed by qualified valuation professionals or internal experts depending on the asset type.

Revaluation affects a company's balance sheet by adjusting the values of its assets, which can also impact depreciation and taxes.

Yes, significant translation effects might influence decisions regarding capital allocation and risk management.

Translation is governed by international financial reporting standards (IFRS) or generally accepted accounting principles (GAAP).

Factors include volatility in asset markets and changes in the regulatory environment.

Translation is an ongoing process that occurs during each financial reporting period for multinational corporations.

It ensures that the financial statements of a company accurately reflect the fair value of its assets.

They are generally reported in the other comprehensive income section of the equity until realized.

Translation does not directly affect cash flow but influences reported earnings and financial position.

If revaluation reveals impairment, the asset must be written down to its recoverable amount, impacting both the balance sheet and profit and loss statement.