Mncs Consolidated Issues Related To Research

Enterprise operating scope has surmounted space limitation along with the intensification of specialty division and the integration of the world economy. Transnational corporations have become the engines for economy's development. The basic peddler for transnational corporation development is to make full use of resources, and in recent years, new reasons have emerged with the fast development of economy, for example, to reduce producing pressure, to amortize huge cost of research and development. Transnational corporations are needed in China, no matter from the point of catching up the current economy development, or considering those reasons for the development of transnational corporations. Now China has become a member of World Trade Organization, which furthermore reduces the costs of our enterprises to join the world economy. Transnational corporations are the next aim of our enterprises. Transnational corporations have to face more complicated environments than common enterprises do, therefore, it is necessary to collect that numerous and jumbled information for management. A consolidated statement is an effective tool for this task. The study of consolidated statements of transnational corporations is beneficial for the development and management of Chinese transnational corporations, and convenient for international communication for consolidated statements can help to reduce information friction with the outside world.When we compile transnational corporation consolidated statement, there are two problems of financial statements: translation and consolidation, which are the targets of this paper. In this article, the author systematically studies the debated focus of translation methods, temporal method and current rate method, discusses the choice of consolidated theories and how to solve the friction between consolidated theories and translation methods. In the end, the author tentatively constructs a framework for consolidated statement standard, in view of the defects of the current rule for consolidatedstatements, and the author's own views are also showed. Induction is the chief study method in this paper.This paper has four chapters.Chapter One Introduction is the basis of the whole article. This part explains the reason why the author chooses this topic and makes the study object clear. The history of transnational corporation development, from international corporation to multinational corporation, global corporation and transnational corporation (I), and the current situation of Chinese transnational corporations are introduced in this part as the basis of the latter parts.Chapter Two The first problem of transnational corporation consolidated statements: translation. Translation is the major difference between transnational corporation consolidated statements and common consolidated statements. Four major translation methods are introduced in this part: current-noncurrent method, monetary-nonmonetary method, temporal method and current rate method (or closing rate method). Current-noncurrent method is seldom used now, while according to the author's understanding, monetary-nonmonetary method and temporal method belong to the same group, and the latter is the improved result of the former. Thus, the choice of translation methods exists in temporal method and current rate method.The author analyzes temporal method and current rate method from the views of economics, accounting and practice. From economics view, we can deduce temporal method from purchasing power parity theory, and the study of Beaver and Wolfson provides theoretic evidence for exchange differences being introduced into profit. To people's disappointment, purchasing power parity is not as secure as they expect. Pretending no friction in the world is its fatal drawback, and many studies couldn't confirm this theory. Perfectly keeping measuring attributes is the main advantage of temporal method, but current rate method leads to embarrassed situation for "history cost×current rate". Obviously temporal m...