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Consolidate Exchange Rate is not equal to 1


I have the following subsidiaries with respective base currencies.

Grandparent - USD

Parent - SGD

Child - USD

Child to Grandparent consolidated exchange rates is derived.

If there are transactions for all these subsidiaries, the average consol rate derived for Child to parent is supposedly 1 but the system shows 1.00043818.

May I know why it is not exactly 1? These decimals even if not that much will still have an impact in the CTA.

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Quarter 2 ((Apr-Jun 2024) )

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