The Study, Based On The Foreign Currency Translation Method Of Accounting Measurement Theory

The development of economic globalization demands higherstandard on the measurement method of the accounting report ofMultinational Corporation. The foreign currency translation method isthen requested to be amended and improved so as to be adapted to thenew environment day after day.The foreign currency translation, resulting from meeting the need ofpreparing the merged accounting report of Multinational Corporation, isnow one of the most difficult four problems in international accountingarena. At present, there are two methods contemporarily used in foreigncurrency translation, one is the current rate method and the other istemporal method. There are many flaws on the contemporary use of bothof the methods. It leads to many contradictions and criticisms. We need tomake further efforts to solve these problems. However, the choosing ofany translation method must have corresponding theory basis. This articlestarts with the basic theory on which the foreign currency translation isrelied——accounting measurement theory, and discovers someinharmonious aspects between the prevailing translation method and theaccounting measurement theory by analyzing and comparing two of theprevailing essential foreign currency translation report method. On theother hand, this article is aimed at the practice research. And afteranalyzing the applying condition of foreign currency translation methodby various countries, this article suggests that the principle on how tochoose the translation exchange rate should be improved when a currenttranslation method is picked. As to solve two of the problems, this paperproposed to establish a completely new translation pattern that based onthe governing principle of accounting measurement theory on theaccounting report of exchange currency. It can be more in conformitywith the quality demands of relevance and reliability by accountinginformation. In the end of this paper, we illustrate how to use the newtranslation method constructed in the theoretical section through anexample.