US parent + UK Ltd (GBP functional, translated) + Japan KK (JPY functional, translated) + Singapore Pte (USD functional, remeasured). Intercompany management fees invoiced in local currency, settled two months in arrears. All figures synthetic and seeded; every check below re-runs before this page publishes.
The yen weakened ~7% over the year. That is why consolidated equity moved $-0.21M with zero P&L impact — the answer to "why did equity fall when we made money" is translation, not performance.
Every bar is computed twice: as the balance-sheet plug and as the analytical roll-forward (opening net assets × spot move + NI × (spot − avg)). Validation fails if they diverge by a cent. A plug always balances — that is exactly why it cannot be the only computation.
| US parent | UK | Japan | Singapore | Eliminations | Consolidated | |
|---|---|---|---|---|---|---|
| Revenue | $4.87M | $1.39M | $1.16M | $0.90M | $-0.10M | $8.32M |
| Net income | $0.64M | $0.21M | $0.11M | $0.04M | $0.00M | $1.00M |
| Assets | $32.54M | $6.30M | $4.53M | $2.08M | $-1.19M | $44.26M |
| Liabilities | $2.97M | $0.91M | $0.87M | $0.77M | $-0.21M | $5.30M |
Eliminations: management fees (income vs expense at the same average rate), intercompany receivable vs payable (both at spot), parent investment vs subsidiary capital (both at historical). The parent's FX gain on local-currency IC receivables does not eliminate — it is a real ASC 830-20 P&L item, reported in "FX in P&L" above.
| Pair | Month | Parent AR (LC) | Sub AP (LC) | Difference | Signature |
|---|---|---|---|---|---|
| US–JP | 2025-11 | booked correctly | under-accrued | ¥27,000 | ÷ 9 = 3,000 — transposition suspect |
Japan accrued the November management fee with two digits transposed. A transposition error is always divisible by 9 — the oldest trick in the reconciler's book, and the matrix applies it automatically. The engine posted a top-side accrual in November and reversed it in December when Japan's own catch-up entry landed. Every other pair nets to zero in all twelve months.
| UK / Japan | Singapore | |
|---|---|---|
| Books kept in | GBP / JPY | SGD |
| Functional currency | local | USD |
| Method | Translation (current-rate) | Remeasurement |
| Rate effect lands in | OCI (CTA) | P&L |
| FY2025 effect | $-0.21M | $18K |
Singapore deliberately holds no nonmonetary assets, so its remeasurement formula is arithmetically identical to CTA. The only difference is where it lands — and that is decided by functional currency, not by geography. This is the judgment ASC 830 actually asks for.
Synthetic, seeded data
(random.seed(830)). Generator, engine, and checks:
github.com/Lumimama/finance/consolidation-fx.