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VOL. 12, ISSUE 10 (2025)
Translating foreign currency financial statements: Methods and challenges
Authors
Kaushik
Abstract
The globalization of business has intensified
the need for accurate and consistent translation of foreign currency financial
statements. Multinational corporations (MNCs) often face significant challenges
in consolidating financial results across jurisdictions where operations are
conducted in diverse currencies. This paper investigates the major methods of
translation, including the current rate method, temporal method, and
monetary/non-monetary method, alongside the challenges of exchange rate
volatility, regulatory divergence, and investor interpretation. A review of
existing literature highlights gaps, particularly in the treatment of
translation during global crises and the limited exploration of emerging
technologies in this field. The findings underscore the need for harmonization
between IFRS and US GAAP, improved disclosure practices, and the adoption of
advanced technological solutions to enhance transparency and comparability in
financial reporting.
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Pages:91-94
How to cite this article:
Kaushik "Translating foreign currency financial statements: Methods and challenges". International Journal of Multidisciplinary Research and Development, Vol 12, Issue 10, 2025, Pages 91-94
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