an inquiry on foreign currency translation

[alsuwaih]

Hello there,
I have been looking at the the annual report of Sabic (a giant company from Saudi Arabia), but couldn't understand why do they have the item "currency translation adjustment" at the detailed disclosure statement on Property Plant and Equipment? what has this item
to do with PPE?
I need an answer please

 

[bklynboy]

My guess is that they have foreign operations that own PPE. When they convert the PPE asset to their reporting currency there is movement due to exchange rates and they are trying to isolate that noise to show how much of the PPE balance was impacted by moving exhange rates.