Introduction In all the techniques of currency translation, we specify the exchange rates with the FS items so as to show how

it is possible to make translation differences and how rounding differences can be handled. Comparing and Contrast the 4 Currency ranslation !ethods he four prime currency translation methods are following" #. he Current $ate !ethod% &. he !onetary' (onmonetary !ethod% ). he Current' (oncurrent !ethod% 4. he emporal !ethod. In the current'noncurrent method, the translation of liabilities and assets is carried on the grounds of their maturity. his is fundamental principle. Correspondingly, when there is a translation of current assets at spot rate, then noncurrent assets are at historical rate. In the emporal !ethod, the key go*erning principle says that all assets and liabilities must be translated, according to the way in which they were carried o*er in the company+s books of accounts. ,hile in the current rate method, we use cumulati*e translation ad-ustments in forming the balance of balance sheet and the items of balance sheet are translated at the present rate of exchange . imothy, &//01. The 2 methods used by FASB 52 he two methods used under F2S3 4& are current rate and temporal methods. In the second step method applied in F2S3 4&, there is an essentiality to be the accounting for the original selling in 5S dollars% and also the accounting for profits and losses from the *ariations in the rate of exchange .6errmann, &//41. Handling Inflationary Economies 6ighly inflated economies .approximate #// percent inflation in a three year time1 can be managed by lending rates and controlling the borrowing. he rate of borrowing must be one

which is fa*orable to assure the stability and growth of investments and enough strict to benefit critical institutions with !articularity given to time" The government can also enforce economic values to maintain critical firms and investors in o!eration #6errmann, &//41. $iscussing How %ermany and &a!an A!!roach to the Translation of 'urrency 7ermany and 8apan approach towards translation of currency by using the emporal !ethod and !onetary'(onmonetary !ethod, as the methods offer similar results and are agreeable to agreements of 7229. Should the (S 'hange its Translation )ethod* he 5nited States need not to change its translation method in order to match with the :uropean 5nion because most of the commonwealth countries also use 2merican dollar as common currency and moreo*er, the 5nited States is also not a member of the :uropean 5nion.

$eferences imothy S. ;oupnik and 6ector 3. 9erera .&//01. International 2ccounting .#st :dition1, 3oston" !c7raw<6ill'Irwin. 6errmann, ;on and homas, ,ayne 3. .&//41. $ounding of 2nalyst Forecasts. 2ccounting $e*iew, =ol. >/, 8uly.