Q1073. What financial reporting standards govern multinational corporate financial statement translations?

Answered by the NYC Visa & Translation certified translation team

Multinational financial statements are translated under two frameworks, and the translation must preserve which framework the numbers were prepared under. Thai subsidiaries reporting to foreign parents: the Thai statutory financial statements are prepared under Thai Financial Reporting Standards (TFRS, converged with IFRS) in Thai, audited by a Thai CPA, and filed with the DBD and Revenue Department — the English translation for the parent must state that it is a translation of the Thai statutory statements and must preserve the TFRS basis, the auditor's opinion type, and all note disclosures. Foreign parents' statements coming into Thailand (for BOI applications, bank credit, or regulatory filings): translated into Thai with the original framework (US GAAP, IFRS, local GAAP) identified, because Thai users assess the statements knowing the basis differs. Translation rules that matter: account captions follow the standard Thai chart-of-accounts terminology used in TFRS practice; figures are transcribed exactly — never re-rounded or re-cast; the auditor's report is translated in full including the opinion basis and any emphasis-of-matter paragraphs, because a modified opinion changes how the statements are read; and comparative figures must match the prior year's translated statements. For consolidated reporting packages, the parent's reporting manual usually prescribes the captions to use. Caution: only the Thai statutory statements have legal standing in Thailand — the English translation is for the parent's use and cannot substitute in filings. Confirm the receiving body's accepted form before commissioning.