An Theoretical Perspective Of Methods Of Foreign Currency Statement Translation And The Research On Our Country's Translation Standard

Standars of foreign currency statements translation are critical institutional arrangement for a multinational enterprise, for it plays a significant role in establishing a translation policy ,controlling foreign currency risk and constructing an advantageous environment for its development. Entry into WTO brings forward opportunities as never before for Chinese enterprises'international expansion. On the other side, the pressure of financal system flux means a great challenge to Chinese multinational enterprises. While Chinese multinational enterprises, taking on a new look, are striding to the word, how to set up the correlative system gets more and more important.Any choice on methods of translation and arrangement of system must base on corresponding theories. This thesis focuses on the advanced translation methods and themodels of translation--SFAS 52,IAS21,begins with the change from SFAS 8 to SFAS52 and make a multidimension analysis with correlative accounting theory, exchange rate theory, function currency theory and capital market theory as tools. It is found out that each method has their own strongpoints and disadvantages, and that a consistent conclusion can't be drawn according to a certain theory. It also points out that SFAS 52 and IAS21 doesn't reflect economics truth. Especially, on condition that market is insufficiently efficient, the implementation of the rules will lead to negative effect. Therefore, the current theories are not able to guide foreign currency statement translation.Because of the inefficacy of theories, this thesis makes a thorough analysis on the actual practice of translation and find out that utilitarianism plays a crucial role.Although the internationalization of accountin standards is a major trend, it is necessary to analyze the system arrangement during the progression of internalization in the view of economic consequence. Established in our country's specific environment, including opportunities and challenges brought forward by flux of macro economic system, nascent capital market and multinational enterprises in inferior position,this thesis makes a comprehensive analysis on the cost and gains during the progression of internationalization of our country'accounting standards on foreign currency statements translation. At the same time, this thesis tries looking for a path of equilibrium.During the course of economic globalization,a country' multinational enterprises will determine its overall strength to some degree. Therefore, our contry's arrangement of standard of foreign currency statements translation must locate the equilibrium pointon the behalf of country. Furthermore, this thesis also points out the strategies for our country'standard of foreign currency statements translation in the near term and long range.