The current methods of foreign currency translations mainly consist of the flexible -nonflexible method, the monetary-nonmonetary method, the current rate method and the temporal method.

With the speeding up of economic globalization and capital internationalization, the international investment is on the growth, and the multinational corporations (MNC) are playing an increasingly vital role in world economy, which makes more crucial the translation of foreign currency financial statements, the prerequisite for preparing MNC s consolidated financial statements.

With the swift development of the economic globalization, as one of the general accepted and three major difficult problems in nowadays international accounting field, the choice of methods of Translation of Foreign Currency Financial Statements seems much more important.