A Study On The Impact Of Foreign Currency Translation Standard On Foreign Banks In China

With the developing of Chinese economic,foreign bank grow quickly in China. It's unavoidable to handle the foreign currency translation,Exchange gains and losses in foreign bank's daily accounting job.In September 2007,the China Banking Regulatory Commission(abbreviation: CBRC)declare that the new Enterprise Accounting Standard which published by the ministry of financial at February 2006 will be implemented in Chinese all kinds of Banks,including foreign bank etc.,in 2008.The No.19 Foreign Currency Translation of this new Enterprise Accounting Standard will impact foreign bank. How to deal with this effect?It need be serious studied.This article will take the No.19 Foreign Currency Translation as object of study. Starting from the definition of foreign currency,it introduces two view of foreign currency transaction in accounting handling:Single Transaction and Two Transactions and four methods of foreign currency report translations.This article describe the new foreign currency translation in detail;Through comparison made between new standards,original foreign currency translation standards and International Accounting Standards,It made a objective evaluation for new standards.To further illustrate new standard of foreign currency translation's influence on our foreign bank,the author combine few years work experience in foreign bank and choice two foreign bank of Xiamen A foreign bank and B foreign bank as sample to make study.Through the study,the author gives some suggestion about how to deal with this change.