The purpose of this paper is to inquire into some problems arising from translating foreign currencies in accounts for international financial reporting. The need for the international financial reporting has increased sharply over the last decades. First, international business activity is conducted on an ever growing scale. Secondly, coupled with growing international investments, there are increasing institutional activities in international finance. In these situations, effective international use of accounting as a whole is impossible without some faculty for translating monetary amounts from one national currency to another. In this sense, this paper is to deal with some problem areas faced to the need of translating foreign currencies in accounts or financial statements. The contents of this paper will be, summarized as follows; 1) To bring up the characteristics of international financial reporting and the need for translating foreign currencies, 2) To examine the traditional method of translating and to compare this with the modified method by Professor S.R. Hepworth, 3) To investigate the nature of gains or losses on foreign exchange translation and to present an opinion with their disposition.