On the most important US accounting principle is FASB 52 which is refers to the translation of income statement and balance sheet of between subsidiaries and the parent company of multinational national companies. Prior to the development to FASB 52, FASB 8 was use, but it has many problems in the translation of foreign currency and the exchange rate use in the translation process. The background history in this issue goes back to 1931when the accounting professional first addressed this matter in their report called “Foreign Exchange Losses” which recommendation was base on reporting any foreign exchange gain or loss in the classification of assets and liabilities as current or non- current. Then in 1939 the AICPA published the Accounting Research bulleting (ARB) which cover a article No.4 titled “Foreign Operations and Foreign Exchange Gains” which also use the current / non- current approach providing assets and liabilities translated at historical cost with the exchange rate on the date of the acquisition. Then between 1944-1971 exchange rates were stable through the international monetary system which was control by the Article of agreements of the International Monetary Fund’s adopted the vast majority of major counties this agreement was also known as the “Bretton Woods Agreement”. In this period of time the value of dollar was base on the supply of gold and the currency of all members was pegged rate with the US dollar and this process last until late 1960’s. Consequently, the inflation fear, unbalance of payments took over the counties with the pegged exchange rate and the demand for US dollar exceeded the supply and in 1968 the US developed high deficits and resulted in the inflation of exchange rate. Due to this exchange rate inflation in 1970’s the financial Accounting Standards Board was established to study this issue and the creation of FASB 8 took place and then FASB 52 in later times until now.  Work Citedhttp://www.fasb.org/st/summary/stsum52.shtmlhttp://www.executivecaliber.ws/sys-tmpl/fasb52/