Foreign Currency Financial Statements

With the developing of the economic globalization, not only the scale of multinational companies but also the number of multinational is getting larger and larger. The founding of foreign subsidiaries makes the translation of foreign currency statements more important. At present, the studies on the translation are not satisfied of the accounting practice, a lot of problems are not still settled. Especially in our country, we have just made an initial study on the issues, so the further studies are very necessary. On the basis of studies on the translation methods and the interrelated accounting standards of the American and so on. We discussed the selectivity of the exchange rates, the relationship of the translation of foreign currency statements with consolidated financial statement, the ways how to settle the translation gains or losses etc. Meanwhile, some suggestions how to select translation method are made in this dissertation. This dissertation has five parts. The first part mainly made the translation objective clear, discussed the related conception and the accounting issues. The second part mainly compared and reviewed each translation methods, analysed the reasons of the translation gains on losses coming into being and studied the ways how to report it. The third part mainly discussed the relationship of translation of foreign currency statement with consolidated financial statements. The fourth part mainly discussed several issues related with the translation of foreign currency statements. The importance of these issues is not ignored. The fifth part mainly presented the developing of the translation methods in our country and made some suggestions which method should be adopted.