# A UK parent with US, UAE and Singapore companies on Zoho Books: how the group accounts are built

> One worked month for a pound parent with dollar, dirham and Singapore dollar subsidiaries: the translation, the reserve to the pound and the share that belongs to outside owners.

Source: https://finconsol.com/blog/consolidate-foreign-subsidiaries-zoho-books/ (updated 25 November 2026)

## In short

To build group accounts for a UK parent with US, UAE and Singapore subsidiaries, translate each company's trial balance into pounds: profit at the average rate, assets and liabilities at the closing rate, share capital at its historical rate. The gap is the translation reserve. Outside owners of the 80 percent Singapore company get 20 percent of it.

Key takeaways

- **Translate each company in its own currency first.** Zoho Books, QuickBooks, Xero or a trial balance all give the same starting point.
- **Three rates do the work:** average for profit, closing for assets and liabilities, historical for share capital.
- **The reserve is the balancing figure,** not a gain or loss, and you can rebuild it from the rates.
- **Outside owners get their share of the reserve too,** not only of the profit.

## What does the group look like?

Zenvara Group Ltd is the parent. It keeps its books in Zoho Books in pounds sterling, which is also the group's [presentation currency](/blog/glossary/presentation-currency/). It owns three companies whose [functional currency](/blog/glossary/functional-currency/) is not the pound: Fernhollow Inc in the United States (US dollars, 100 percent), Palmridge Hospitality LLC in the United Arab Emirates (dirhams, 100 percent) and Kestrelwick Pte Ltd in Singapore (Singapore dollars, 80 percent).

Whatever system each subsidiary uses, the method below is the same. All it needs is a [trial balance](/blog/glossary/trial-balance/) in the company's own currency and three rates for the month.

- **US dollar:** average 0.7540, closing 0.7560 (30 Sep), 0.7500 (31 Aug).
- **UAE dirham:** average 0.2025, closing 0.2040 (30 Sep), 0.2010 (31 Aug).
- **Singapore dollar:** average 0.5850, closing 0.5870 (30 Sep), 0.5820 (31 Aug).

Each rate is the value of one unit of the foreign currency in pounds. They are the group's rates for September 2026, one set for every company.

## How do you translate one subsidiary?

Take Palmridge. Profit for September is translated at the [average rate](/blog/glossary/average-rate/), assets and liabilities at the [closing rate](/blog/glossary/closing-rate/), and share capital and earlier profits at the [historical rates](/blog/glossary/historical-rate/) when they arose[1](#src-1). The translated statement does not balance on its own. The [translation reserve](/blog/glossary/translation-reserve/) is the figure that makes it balance.

*Exhibit 1. Palmridge translated into pounds, 30 Sep 2026GBP*

| Palmridge Hospitality LLC | AED | GBP |
| --- | --- | --- |
| Hotel property and equipmentclosing rate 0.2040 | 11,200,000 | 2,284,800 |
| Cash and receivablesclosing rate 0.2040 | 5,305,000 | 1,082,220 |
| Liabilitiesclosing rate 0.2040 | (2,600,000) | (530,400) |
| Net assets at 30 September | 13,905,000 | 2,836,620 |
| Share capitalhistorical rate 0.2100, assumed | 2,000,000 | 420,000 |
| Retained earnings at 31 Augusthistorical rate 0.2060, assumed | 10,000,000 | 2,060,000 |
| Profit for Septemberaverage rate 0.2025 | 1,905,000 | 385,762 |
| Translation reserve(68,000) at 31 August plus 38,858 for September |  | (29,142) |
| Total equity | 13,905,000 | 2,836,620 |

Example group used across Finconsol guides. Historical rates are assumed for the example. The group translates revenue and costs line by line and rounds each line, so September profit is 385,762 (972,000 less 586,238). Figures rounded to the pound.

Net assets of AED 13,905,000 at 0.2040 are GBP 2,836,620. The pieces of equity add to more than that until the reserve is included, and the reserve, a debit of GBP 29,142, closes the gap. It is the earlier months' movements, (68,000) at 31 August, plus the September movement of GBP 38,858, which the next section builds from the rates.

## Where does the reserve movement come from?

Two parts, both from rate changes. The opening net assets are worth more because the closing rate moved from 0.2010 to 0.2040: AED 12,000,000 times 0.0030 is 36,000. The profit was earned at an average of 0.2025 but sits in net assets at 0.2040: AED 1,905,000 times 0.0015 is 2,857.5, or 2,858 to the pound.

*Exhibit 2. Translation reserve movement by companyGBP*

| September 2026 | On opening net assets | On profit | Reserve movement |
| --- | --- | --- | --- |
| Fernhollow IncUSD 431,000 x 0.0060; USD 69,000 x 0.0020 | 2,586 | 138 | 2,724 |
| Palmridge Hospitality LLCAED 12,000,000 x 0.0030; AED 1,905,000 x 0.0015 | 36,000 | 2,858 | 38,858 |
| Kestrelwick Pte LtdSGD 4,000,000 x 0.0050; SGD 120,000 x 0.0020 | 20,000 | 240 | 20,240 |
| All three subsidiaries | 58,586 | 3,236 | 61,822 |

Rate changes: closing 30 Sep less closing 31 Aug for opening net assets; closing less average for profit. No dividends or new capital in the month.

The reserve moves to profit or loss only if a subsidiary is sold. Until then it sits in equity, and it is not a gain or loss for the month. A pound-denominated parent that owns dollar, dirham and Singapore dollar assets is exposed to all three, and this is where that shows.

The movement is easy to rebuild for a handful of subsidiaries. If you want to test your own figures, use the tool below with your own rates.

[fc_tool name="translation-reserve"]

## What changes for the 80 percent company?

Zenvara consolidates 100 percent of Kestrelwick, then shows the outside owners' 20 percent separately as [non-controlling interest](/blog/glossary/non-controlling-interest/)[2](#src-2). The exchange difference follows the same split: IAS 21 allocates the part of the reserve that relates to the outside owners to them[1](#src-1).

*Exhibit 3. Kestrelwick split between ownersGBP*

| Kestrelwick Pte Ltd | Zenvara, 80% | Non-controlling, 20% | Total |
| --- | --- | --- | --- |
| Opening net assetsSGD 4,000,000 at 0.5820 | 1,862,400 | 465,600 | 2,328,000 |
| September profitSGD 120,000 at 0.5850 | 56,160 | 14,040 | 70,200 |
| Reserve movementfrom Exhibit 2 | 16,192 | 4,048 | 20,240 |
| Net assets at 30 SeptemberSGD 4,120,000 at 0.5870 | 1,934,752 | 483,688 | 2,418,440 |

Each line is split 80/20 and rounded to the pound; the columns add across and down.

Of the group's September reserve movement of GBP 61,822, GBP 4,048 belongs to the outside owners of Kestrelwick and GBP 57,774 to Zenvara's shareholders. If the 20 percent were left out, the group reserve would be overstated by that 4,048, and the non-controlling interest in equity would be short by it.

## What does Zoho Books do for this?

Zoho Books keeps each company's books in its own currency, and Zoho's currencies page says exchange rate feeds are on by default, fetched through Open Exchange Rates, with manual rates possible once the feeds are disabled[3](#src-3). Zoho's help pages on managing organizations describe creating them, not a report that combines them[5](#src-5).

Zoho's own workaround for several organizations with different currencies is a Zoho Analytics query. The partner article says its rates are entered by hand in the query, and it does not mention eliminations, non-controlling interest or a translation reserve[4](#src-4). Checked against Zoho's help centre on 29 Oct 2026.

None of this is a criticism of Zoho Books as a ledger. It records each company well. The group step sits above it.

## How does Finconsol handle this?

Finconsol reads Zenvara's books from Zoho Books directly, read only and every night. The US, UAE and Singapore companies come in as trial balances today, whether they are on QuickBooks, Xero or another system, with direct connections for Xero and QuickBooks coming soon. You set one group rate table, and each company is translated with it.

The translation reserve, the non-controlling interest and the intercompany eliminations come out of the same run, month by month, and a locked month stays as it was reported.

**In Finconsol**[How translation works →](https://finconsol.com/multi-currency-consolidation/)

******Translation, Sep 2026, GBPTies

| Company | Net assets | Closing rate | In GBP | Reserve movement |
| --- | --- | --- | --- | --- |
| Fernhollow (USD) | 500,000 | 0.7560 | 378,000 | 2,724 |
| Palmridge (AED) | 13,905,000 | 0.2040 | 2,836,620 | 38,858 |
| Kestrelwick (SGD) | 4,120,000 | 0.5870 | 2,418,440 | 20,240 |

*One rate set for the group. The reserve movement for each company ties to Exhibit 2.*

## Questions

**Which rate do you use for share capital of a subsidiary?**

The historical rate, the rate on the date the capital was issued. It stays at that figure in group equity, and the difference between it and the closing rate sits in the translation reserve.

**Do you use the closing rate or the average rate for the balance sheet?**

The closing rate on the last day of the period for assets and liabilities. The average rate is for income and expenses, unless rates moved sharply during the period.

**Why does the translation reserve not balance to zero?**

It is the balancing figure between profit at the average rate and net assets at the closing rate, plus the effect of the rate change on opening net assets. It stays in equity until the subsidiary is sold.

**Can you consolidate a subsidiary that is not on Zoho Books?**

Yes. Each company supplies a trial balance in its own currency, from Zoho Books, QuickBooks, Xero or any other system, and the same translation applies.

## Sources

## Sources

1. IAS 21 [The Effects of Changes in Foreign Exchange Rates](https://www.ifrs.org/issued-standards/list-of-standards/ias-21-the-effects-of-changes-in-foreign-exchange-rates/), paragraphs 39 to 41.
2. IFRS 10 [Consolidated Financial Statements](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-10-consolidated-financial-statements/), paragraph B94.
3. Zoho Books help, [Currencies](https://www.zoho.com/books/help/settings/currencies.html). Checked 29 Oct 2026.
4. Zoho Partner Support, [Multi-currency financial reports from multiple Zoho Books organizations in Zoho Analytics](https://help.zoho.com/portal/en/kb/partner-support-solutions-tbs/solutions/zoho-analytics-partner-support-solutions/articles/multi-currency-financial-reports-from-multiple-zoho-books-organizations-in-zoho-analytics). Checked 29 Oct 2026.
5. Zoho Books FAQ, [Manage Multiple Organizations](https://www.zoho.com/in/books/kb/general/manage-multiple-organizations.html). Checked 29 Oct 2026.