Research On The Effect Of Changing Exchange Rate On Consolidated Financial Statement

Global economic integration has become the most obvious characteristics ofcontemporary society, between countries, regions and regional trade links between moreclosely, investors and companies are constantly looking for entities international cross-borderopportunities, national companies from domestic capital markets alone to rely on theinternational capital markets for financing, which after the global economic crisis in2008ismore urgent, crisis-hit countries, for out of the crisis as soon as possible, adjust the domesticeconomic policy, trying to attract foreign capital to enter, and less affected by the crisiscountries, such as China, the powerful enterprise, is looking to overseas, so more and moremultinational companies set up. How to reasonably accurately reflect the financial andoperating results of the multinational group company, meet the needs of all kinds ofstatements, prepare high-quality consolidated is particularly important. Larger changes in thecurrent exchange rate of the international situation, the change of exchange rate in addition tothe influence on the daily economic business, also can produce great influence to theconsolidated profit, choose reasonable consolidation theory and guiding principle, to someextent, can avoid the multinational group of companies using the exchange rate change toprofit manipulation, distorted financial information, so as to provide more real data for themajority of users of the information service, it is more prominent for listed companies. WithNE group as an example based on this, this paper, the effect factors of multinationalcompanies consolidated the empirical analysis, determine the key factors influencing theconsolidated profit, and based on this, advances the corresponding Suggestions.Thesis is divided into six chapters, the first chapter of the research background andresearch purpose and meaning, on the basis of key literature review was carried out on theconsolidated, found that most of scholars both at home and abroad, the research focus onconsolidated theory research and study of consolidated practical operation is rare. The secondchapter on the theory, the combining method and consolidation scope, defining the conceptand laid a theoretical basis for research. The third chapter first on the key problems ofmultinational companies consolidated is analyzed, and then puts forward the importance ofcurrency choice in the consolidated statements. The fourth chapter introduces the NE group company profile with the enterprise on the basis of consolidated as an example formultinational companies consolidated practical operation for the show, at the same timeprovide base for the next chapter contrast analysis data. The fifth chapter through to the NEgroup exchange rate affect the consolidated result, this paper compares and analyzesdetermines the exchange rate affect merger profits through related party transactions. Lastchapter based on the above empirical analysis, this paper puts forward the attention crosslinking trade, perfecting the related policy suggestion, and expounds the researchinsufficiency.