How to Translate Foreign Currency on Financial Statements?

Translating foreign currency on financial statements can be a pain. They take too much time, and most of the time you are working on them is spent banging on your head on your desk. However, it is not that difficult if you know what you are doing. The best way to approach this would be by hiring a translation service provider to handle it for you, but if you really want to torture yourself, you can use the following method to translate the foreign currency on your financial statement.

Finding the best way to approach your financial statement is very important and it is not for the faint of hearts. Things can escalate from “this is difficult” to “what of Monster does this?!” so be prepared to spend a few hours on it, at least.

Identify the currency you are converting. Because how else are you going to translate it? So this is your first step. This will probably be the best time to use Google.
After that you will have to choose a currency translation method. And, you guessed it, there are several types of methods that a person can use. They are CBR (currency of books and records), Temporary Rate Method and Monetary Method.
Determine the currency that is used majorly for the company’s transactions. In technical terms, it is called the functional currency.
The reporting currency is the one you are translating. So the second step is converting that currency into the functional currency.
The last part: measure the losses and gains in the converted form. Isn’t this fun!

This is not as easy as many believe it to be. There are a lot of things that must be considered when financial statements are made, especially when they require foreign currency translation. You will have to mention everything, like the liquid assets, losses, profits, gain and even any debts. All in all, this will take a good few hours.

However, if you hire a professional translation services provider, you will save yourself from the heartburn it will give you. Such companies have trained professionals who can actually translate it in a couple of hours because they are used to it. The companies who provide business translation and legal translation services will be your best option because they will have more experienced people handling their projects.

Be smart my friend, and choose a company to do this work for you.

Related Blogs

AI with Human Quality Control (QC): Impact on Translation

The long and tiring debate between AI translations and human translators still stands. When it comes to speed and efficiency,

Translators will have the chance to get Man Booker prize from 2024

The world's most famous international literary prize has for the first time now, opened up to translations. The Booker Prize Foundation

5 Business Trends That Will Continue to Rise in 2024

What Makes the Business Boom at the End of the Year? Lots of factors come to mind like stock exchange, marketing

Paris Olympics 2024: Culture, Language and Sports

From 26 July 2024 to 11 August 2024, Paris will remain lit to commence the show of skill and bravery,

How Was 2023 for E-commerce Sector in China?

With the advancement in technology and digitization influencing the business sector globally in 2019, some of the countries emerged as

Mother's Day: Things to Do to Show Your Love with Mom

To be a mother means to become more than just someone who bears children. She is the backbone and silent

Christmas Celebrations Across the Globe

Christmas celebration is one of the important festivities of winter. People start waiting for the winter holidays so that they

AI and Neural Machine Translation for Translation Industry in 2020s

The world is an ever-shifting paradigm of technology and the digital revolution. As technology breaks down cultural and linguistic borders,

Top 10 Translation and Localization Companies

Any business that you start soon becomes a part of you. Like a child, you nurture it, help it grow,

How to Translate Foreign Currency on Financial Statements?

Related Blogs

WHAT WE DO

Resources

Mars Translation Blog

FREE TOOLS

SUPPORT