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Foreign Financial Statement Translation into US GAAP
ExpatCPA has experience in translating financial statements from foreign accounting standards into U.S. generally accepted accounting principles (GAAP). The translation involves an understanding of the foreign accounting principles applied in preparing the foreign entity's financial statements and identifying all variances of these standards from U.S. GAAP. Adjustments are then made to the account balances to bring the accounts into conformity with U.S. GAAP. The accounts are then presented in financial statement format in accordance with U.S. GAAP together with footnotes required for full disclosure. Foreign companies may use their US GAAP financial statements to attract
U.S. equity investment or secure U.S. debt financing. For example,
foreign companies may attract U.S. investors through a small company stock offering registration (SCOR) under the North American
Securities Administrators Association (NASAA). Under the SCOR rules only a review of
financial statements for the last fiscal year and unaudited financial statements for any
interim period thereafter are required. These rules present a significant cost
savings to audit requirements of the SEC. U.S. banks typically require financial statements in conformity to U.S. GAAP
to accompany working capital and line-of-credit loan applications.
In addition to translation,
ExpatCPA can also audit or review the financial statements it has
translated in accordance with U.S. GAAP. Reviews or audits by a U.S. CPA
firm may be required by US banks depending on the amount of financing
the company is requesting.
For more information on this matter or if we
may be of further assistance please contact us by e-mail at
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