Simply put, fund conversion is a kind of net value conversion in order to unify the net value. If the net value increases or decreases, the share will change correspondingly in the same proportion, so that the asset value will remain unchanged before and after the conversion. There is no gain or loss in transforming the original body.

The conversion principle is 1: the assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date, and the owner's equity items are converted at the spot exchange rate at the time of occurrence except the undistributed profit items.

The income and expenses in the income statement are converted at the spot exchange rate on the trading day; You can also use a systematic and reasonable method to determine the exchange rate conversion, similar to the spot exchange rate on the trading day.

The translation difference of foreign currency financial statements generated by the translation in accordance with the above provisions shall be listed in the following owner's equity items in the balance sheet.