Translation Services in Corporate Finance

March 11th, 2010 by admin

Throughout the year, stockholders receive a number of important reports and conference call notes.  Among these, the annual report is generally the most interesting. One of the most important sections to a German Translation associate is the verbal section which often consists of a message from the CEO that details the corporations operating results throughout the year and a summary of anticipated future results. The written section is usually followed by a set of standard financial documents like the statement of retained earnings, statement of cash flows, statement of income and balance sheet.  When the four financial reports are presented and analyzed, a shareholder can get a snapshot of the corporation’s financial strength. Detailed data are provided for the two most recent years, along with historical summaries of key operating statistics for the past five or ten years.While translation workers often place the greatest importance on the written section, investors and other stakeholders place equal value on both the written and analytical sections. When interviewed, leading Legal Translation workers in the banking industry indicated that financial statements report what has actually happened to earnings and dividends over the past few years, whereas the verbal statements attempt to explain why things turned out the way they did. To illustrate, one multinational company experienced a large earnings variance in 2009 from levels experienced during 2008. In a summary, the company’s president wrote that the significant drop in revenue was primarily the contributed to antitrust reparations and the closure of 12 older and inefficient operating plants. Despite the bad in 2009, the president expects that staff reductions will vastly improve the company’s efficiency and a realignment of benefit programs in 2010 will enable the company to report more favorable results and pay higher than average dividends. Of course, an increase in profitability may not occur, and analysts should compare management’s past statements with subsequent results. In any event, the information contained in an annual report is used by investors to form expectations about future earnings and dividends, and about the riskiness of these expected values. Therefore, the annual report is obviously of great interest to investors. Financial documents, including filings with the Securities and Exchange Commission, copies of annual reports, proxy statements and news releases are available through a number of online databases.  According to Japanese Translation workers, these filings help potential investors and existing investors evaluate future buy, hold and trade decisions.  Further analysis of the annual report allows investors to get a better idea about the strength of the company in terms of decision making, strategic planning and market competitiveness. It can take time to learn how to read an annual report properly, and many consumers prefer to leave analysis of annual reports to their stockbrokers or asset managers. From the perspective of a translator, it is important to understand that Multinational corporations are business entities that operate in more than one country. For example, the typical multinational corporation normally has its headquarters based in one country, while other facilities are based in locations in other countries. In some circles, a multinational corporation is referred to as a multinational enterprise or a transnational corporation.  Because multinational corporations operate plants and offices in foreign markets, they must satisfy investors, government agencies and other parties who don’t speak English.  As a result, the translation of financial documents including annual reports is usually a requirement.    As a word of warning, financial translation requires a very specialized skill set that takes a good deal of training.  That’s because an annual reports need to resemble a marketing brochure more than an official document while still using some financial and legal jargon.   For instance, an annual report is commonly printed on glossy paper, with numerous pictures and cutting edge typography to draw the eye.   That’s why most established translation companies provide translation workers who are experienced in desktop publishing and are profient in the use of applications like Photoshop, Indesign, Illustrator, Quarkxpress or Publisher.



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