Foreign currency transactions can take many forms. Common foreign currency transactions are:

(1) Enterprises purchase, sell or provide goods and services denominated in foreign currency;

(2) Converting foreign currency receivables or payables for financing purposes;

(3) The enterprise is the party that should perform the contract of the futures exchange;

(4) Enterprises acquire or dispose of foreign currency assets for other reasons, and undertake or pay off foreign currency liabilities.

Foreign currency transaction: refers to the payment, settlement, investment acceptance, fund raising and other transactions conducted by an enterprise in a currency other than the bookkeeping base currency (that is, foreign currency).

Translation of foreign currency statements: refers to the accounting procedures and methods for companies engaged in transnational business activities to restate assets, liabilities, income and expenses measured in foreign currency in some financial statements.