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Form 5471 exchange rate

Per the Form 5471, Page 4 instructions for Reporting Exchange Rates on Form 5471, "When translating amounts from functional currency to U.S. dollars, you must use the method specified in these instructions … But, regardless of the specific method required, all exchange rates must be reported using a 'divide-by convention' rounded to at least four places. That is, the exchange rate must be reported in terms of the amount by which the functional currency amount must be divided in order to reflect an equivalent amount of U.S. dollars. As such, the exchange rate must be reported as the units of foreign currency that equal one U.S. dollar, rounded to at least four decimal places. Do not report the exchange rate as the number of U.S. dollars that equal one unit of foreign currency."
Therefore, UltraTax CS uses the "divide-by convention" (in other words, the units of foreign currency that equal one U.S. dollar) to translate amounts entered in the various screens in the 5471 folder to U.S. dollars. UltraTax CS will also display this "divide-by convention" exchange rate on Form 5471, Schedule H, Schedule I-1 and Schedule M.
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