Foreign currency translation adjustments refer to the changes in the value of a company's foreign currency-denominated assets and liabilities when they are translated into the reporting currency for financial statements. These adjustments occur due to fluctuations in exchange rates and are essential for reflecting the true economic value of foreign operations in a company's equity section, particularly impacting the statement of changes in equity where they are reported as part of other comprehensive income.
congrats on reading the definition of Foreign Currency Translation Adjustments. now let's actually learn it.