Study On Translation Of Foreign Currency Statements Of A Multi-National Corporation

With the expansion of the scale of international investment and financing business,the global economy becomes increasingly integrated,more and more domestic enterprises has developed into a large multinational,participate in international competition in the market,in order to manage branches abroad better and meet the needs of the user of accounting information,and control the entire company's financial condition,The overseas subsidiaries in the preparation of the financial statements need to uphold the principle that the currency they used must be consistent of the parent company,and then calculation and analysis of foreign currency statement translation.With the improvement in foreign currency translation method statements,universal international pay more attention to the fair value-based method of foreign currency translation of foreign currency instead of the traditional accounting methods to report the company's financial reporting application.Based on this,we take A company as an example,analyze the traditional foreign currency statement accounting method of A company,and then apply the translation method on the basis of fair value to A company.The main text is divided into six parts: The first part describes the background and the related factors of the development of translation of foreign currency statements and literature review at home and abroad;Related theory and method of the translation of foreign currency statements are introduced in the second part,the end of this part mainly focus on the analysis of fair value method;the third part describes the current situation of translation of foreign currency statements,at first,the basic situation of A company is explained,followed by an analysis of the use of the translation of foreign currency statements of A company;the fourth part analyzes the apply of A company's other three traditional translation methods,pave the way for the fair value;The fifth part is the application of fair value method of A company,through the construction and analysis of the fair value method of A company,to explore which method can truly reflect the existing value of a corporate company in the translation of foreign currency statements.The sixth part is the summary of the article,it analyzes the limitations of the article and the prospects for the new translation method.The results of the study indicated that the traditional four kinds of foreign currency statements translation methods can not effectively and factually reflect subsidiary earnings information.The results found that the current rate method accounting results are inconsistent with the historical cost principle,the historical cost balances of foreign subsidiaries according to the balance sheet date exchange rate will become meaningless;flow and non-current items are translated at the exchange rate method is based on the selection criteria for theory is not sufficient,and the result of the conversion of the combined company operating results inaccurate;monetary and non-monetary items based method using historical exchange rate and its market value measurement is conflicting.Financial information tenses law after conversion provided unsatisfactory.but the method based on the fair value truly reflects the the true value of the enterprise,it is worth our extensive use in the future translation of foreign currency statements.