How do Chinese enterprises investing in foreign countries choose the base currency of accounting and

Chinese enterprises investing in foreign countries should consider the following factors when choosing the base currency of account and external statements:1Geographical factors:

If the currency of the country in which the company invests is stable and the exchange rate with China does not fluctuate much, you can consider choosing the local currency for bookkeeping. However, if the exchange rate of the target country's currency fluctuates greatly or there is a risk of depreciation, you can choose RMB or other stable currency bookkeeping base currency. 2.

Policy factors: The financial and tax policies of the target country should also be considered. If there is a foreign exchange control policy in the target country, the enterprise can choose the RMB base currency.

If the target country's tax policy has certain restrictions on foreign exchange, it is prudent to consider keeping the base currency in the local currency. 3.Bookkeeping Guidelines:

Enterprises should determine the base currency of account according to local accounting standards. In general, if the target country has adopted International Accounting Standards (IFRS), the base currency of accounting should be selected according to the requirements of IFRS. If the target country does not have IFRS, you can refer to other international standards or local accounting standards to choose the base currency of accounting.

4.External Statements: External statements should be prepared according to the needs and requirements of the target country.

If the target country requires financial statements in the local currency, the local currency should be selected. If the target country requires the company to provide international financial statements, the company chooses the base currency of accounting according to different criteria. To sum up, when choosing the base currency of accounting and external statements, enterprises need to consider many factors, including geography, policies, guidelines and requirements, and make a reasonable choice after weighing them.

Whichever country uses the common currency of that country as the standard currency... The report is just a conversion of the exchange rate.

The Accounting Law stipulates that RMB shall be used as the base currency for accounting. For units whose business revenues and expenditures are mainly in currencies other than RMB, one of the currencies may be selected as the base currency of accounting, but the financial and accounting reports prepared and submitted shall be converted into RMB. Under normal circumstances, the accounting base currency used by the enterprise is the currency used in the country where the enterprise is located, and the accounting base currency is relative to foreign currency, and all currencies other than the accounting base currency are foreign currencies.

The financial and accounting reports must be reported in RMB. Units that use currencies other than RMB as the base currency of accounting shall, in accordance with the provisions of the unified accounting system of the state, convert them into RMB at a certain foreign exchange rate in accordance with the provisions of the unified accounting system of the state, so as to facilitate the reading and use of the financial accounting reports, and also to facilitate the taxation, industry and commerce and other departments to calculate the tax payable and conduct the annual inspection of industry and commerce through the financial accounting reports. This is an objective requirement of China's macroeconomic management and people's livelihood, and is also the embodiment of a country's sovereignty.

Summary. Overseas companies can use RMB as the base currency of accounting, but they need to comply with local laws, regulations and currency management policies. According to China's foreign exchange management regulations, overseas companies are required to comply with foreign exchange management regulations when receiving and receiving RMB funds in China, and conduct foreign exchange conversion through legal channels.

Overseas companies can use RMB as the standard currency for bookkeeping, but they need to comply with local laws and regulations and currency management policies. According to China's foreign exchange management regulations, overseas companies are required to comply with foreign exchange management regulations when receiving and receiving RMB funds in China, and conduct foreign exchange conversion through legal channels.

I'm sorry I don't understand, but can you elaborate on that?

At the same time, if an overseas company engages in production and business activities in China, it also needs to comply with China's tax laws and accounting regulations, and conduct accounting and tax declaration in accordance with the regulations. It is recommended that overseas companies understand the local laws, regulations and policies before proceeding with RMB bookkeeping, and communicate with the relevant local authorities.

Accounting standards stipulate that:

1.The base currency of accounting refers to the currency in the main economic environment in which the enterprise operates.

2.Businesses should usually choose RMB as the base currency of their accounts. Enterprises whose business receipts and expenditures are mainly in currencies other than RMB can choose one of the currencies as the base currency of accounting. However, the prepared financial statements should be converted into RMB.

3.Enterprises should consider the following factors when selecting the base currency of accounting:

1) The currency mainly affects the sale of goods and services**, and the currency is usually used for the valuation and settlement of goods and services;

2) The currency mainly affects the labor, materials and other expenses required for goods and services, and the above expenses are usually valued and settled in this currency;

(iii) The currency in which the financing activities are obtained and the currency in which the payments received from the business activities are kept.

If you want to send it domestically, you must use RMB.