CURRENCY TRANSLATION

Currency Translation

Currency Translation Methods

In accounting and financial terms, the foreign currency translation is typically used to convert and measure a foreign subsidiary's financial performance in other foreign currency. The basic use of currency translation destined to report the financial statement of the company in another foreign currency with an equivalent value (Aline, 2006). In the absence of foreign currency translation, the consolidation of financial statements among the multinational companies would be exceedingly difficult or impossible in few cases. Currency translation may treat distinct financial statements in different ways with respect to the exchange rates (historical or current). Following are the ...