{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/255/10/#55-implementation-guidance-and-illustrations","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"255","topic_title":"Changing Prices","subtopic":"255-10","subtopic_title":"Overall","section":{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"255-10-55-1","para":"55-1","html":"
Paragraphs 255-10-55-1 through 55-13 of this Section provide guidance on the interpretation of paragraphs
255-10-50-50 through 50-55
for the classification of certain asset and liability items as monetary or nonmonetary. The following table illustrates the application of the definitions to common cases under typical circumstances. In other circumstances the classification should be resolved by reference to the definitions. Paragraphs 255-10-55-1 through 55-13 are not intended to provide answers that should be followed regardless of the circumstances of the case.
","snippet":"Paragraphs 255-10-55-1 through 55-13 of this Section provide guidance on the interpretation of paragraphs 255-10-50-50 through 50-55 for the classification of certain asset and liability items as monetary or nonmonetary.…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64e76e6b7c76a04a6250a21bc1397a724e61fe3b37fcdd812d0ae1334fd418b7","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-2","para":"55-2","html":"
Trading account securities are securities of all types carried in a trading account that are held principally for resale. These securities generally are carried at fair value. Trading account investments include both fixed-income securities (for example, nonconvertible preferred stock, convertible bonds, and other bonds) and other securities (for example, common stock). Usually, trading account securities are held for extremely short periods of time—sometimes for only a few hours. Frequently, the entity buys and sells the securities expecting to make a profit on the difference between dealer and retail, or bid and ask, prices rather than on price changes during the period securities are held. However, the prices of the securities change with market forces.
","snippet":"Trading account securities are securities of all types carried in a trading account that are held principally for resale. These securities generally are carried at fair value. Trading account investments include both fix…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6d7ccca58c4cf0cca57df3aab1e17950aae2238b1acc79b95b97fd3762ad30bf","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-3","para":"55-3","html":"
Trading account investments in fixed-income securities are not claims to receive sums of money that are fixed or determinable. The market prices of the securities might and frequently do change while the securities are held. Generally, nonconvertible and nonparticipating preferred stock, convertible bonds that the market values primarily as bonds rather than as stocks, and nonconvertible bonds should be classified as monetary items. However, those classifications are based, in part, on the assumption that those securities would be held for long periods, if not to maturity. Trading account investments, on the other hand, are held for shorter periods and their value depends much less heavily on the general purchasing power of money and more on the specific values of the securities. Therefore, trading account investments in fixed-income securities should be classified as nonmonetary.
","snippet":"Trading account investments in fixed-income securities are not claims to receive sums of money that are fixed or determinable. The market prices of the securities might and frequently do change while the securities are h…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7f630c0329b190db15f5e70644298aba26f53ee6b12561f2137750ecd6b2b0ef","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-4","para":"55-4","html":"
Many entities hedge commodity inventories (such as grain or metals). Short hedges are designed to provide a degree of assurance that a decline in the price of the commodity would be offset by an increase in the value of the hedge contract. Short hedges thus tend to reduce the effects of price changes on the inventory that is hedged.
","snippet":"Many entities hedge commodity inventories (such as grain or metals). Short hedges are designed to provide a degree of assurance that a decline in the price of the commodity would be offset by an increase in the value of …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce2827abefa12ca2594e3724c8ef3af41f9aaf2c28817280a2bbd83e3e5a24af","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-5","para":"55-5","html":"
There are certain similarities between inventories that are hedged and inventories that are used on or committed to a fixed-price contract. In each case, the risk of gain or loss due to price changes before the inventory is sold is largely or entirely eliminated. To the extent that hedges fix the value of an inventory in dollars (or units of foreign functional currency, if appropriate), the inventory effectively becomes a monetary item.
","snippet":"There are certain similarities between inventories that are hedged and inventories that are used on or committed to a fixed-price contract. In each case, the risk of gain or loss due to price changes before the inventory…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:84de965904172d16c833380af412c363563ccc8e202fd96ad6a70bfa275e4c70","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-6","para":"55-6","html":"
The unguaranteed residual value is included with the minimum lease payments, at present value, in the net investment in the lease.
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The minimum lease payments are monetary items because they are claims to fixed sums of money. The residual value is not a claim to a fixed sum of money, so it is a nonmonetary item. Some assets and liabilities, of which the net investment in the lease is a good example, are combinations of claims to (or obligations of) fixed amounts and claims to (or obligations of) variable amounts. Ideally, those claims should be separated for purposes of classifying them as monetary and nonmonetary. However, if the information necessary to make the separation is not available or is impracticable to obtain, such items need not be divided into monetary and nonmonetary components and would be classified according to their dominant element. If the net investment in leases is principally claims to fixed amounts, it would be classified as monetary; it would be classified as nonmonetary if it is principally claims to residuals.
","snippet":"The minimum lease payments are monetary items because they are claims to fixed sums of money. The residual value is not a claim to a fixed sum of money, so it is a nonmonetary item. Some assets and liabilities, of which …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:008f6dd5f32ebabc204c74edb58f3ba2cbd69cf70fe50a8a2016f357505978da","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-7A","para":"55-7A","html":"
The lease receivable arising from a sales-type lease or a direct financing lease is a monetary item because it is a claim to a fixed sum of money. The unguaranteed residual asset arising from a sales-type lease or a direct financing lease is not a claim to a fixed sum of money, so it is a nonmonetary item. Some assets and liabilities, of which the net investment in the lease is a good example, are combinations of claims to (or obligations of) fixed amounts and claims to (or obligations of) variable amounts. Because the net investment in a sales-type or direct financing lease is predominantly a claim to a fixed sum of money, it should be classified as monetary. In accordance with Subtopic 842-30, a lessor includes the unguaranteed residual asset as part of its net investment in the lease. Consequently, the unguaranteed residual asset is accounted for in the same manner as a monetary item so long as it is part of the net investment in the lease. If the lessor sells the lease receivable but retains an interest in the unguaranteed residual asset, the remaining unguaranteed residual asset is accounted for as a nonmonetary item after the sale of the lease receivable.
","snippet":"The lease receivable arising from a sales-type lease or a direct financing lease is a monetary item because it is a claim to a fixed sum of money. The unguaranteed residual asset arising from a sales-type lease or a dire…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7b15b9632a361d5da37aacbec0e33ae71d3cece99ba66d21cbfb64e7edc40dd2","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-8","para":"55-8","html":"
Under paragraph 842-50-35-2, the deferred investment tax credit related to the underlying asset is subtracted from rentals receivable and estimated residual value as part of the calculation of the lessor's investment in the leveraged lease. The lessor's investment in a leveraged lease, including the deferred investment tax credit related to the leveraged lease, is presented as one amount in the balance sheet. As indicated in paragraph 255-10-55-7, the investment in a leveraged lease would be classified as monetary or nonmonetary according to its dominant element.
","snippet":"Under paragraph 842-50-35-2, the deferred investment tax credit related to the underlying asset is subtracted from rentals receivable and estimated residual value as part of the calculation of the lessor's investment in …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e782b572fa579221724c848cc544326cfa2a380fe1d66c3644a1865db63c42af","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-9","para":"55-9","html":"
As indicated in the table in paragraph 255-10-55-1, a deferred investment tax credit should be classified as nonmonetary but, if it is part of an investment in a leveraged lease and if the information necessary to separate its elements is not available or is impracticable to obtain, the investment would be classified according to its dominant element.
","snippet":"As indicated in the table in paragraph 255-10-55-1, a deferred investment tax credit should be classified as nonmonetary but, if it is part of an investment in a leveraged lease and if the information necessary to separa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dacf0af12c0fea744441a7eff5fc6488a42ea9b3d76c460d3719fb2eae0febb7","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-10","para":"55-10","html":"
These assets are carried at depreciated historical cost under generally accepted accounting principles (GAAP) and are classified with or near property, plant, and equipment, which are nonmonetary.
","snippet":"These assets are carried at depreciated historical cost under generally accepted accounting principles (GAAP) and are classified with or near property, plant, and equipment, which are nonmonetary.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ab307995ac14751f641c0c291a77e905581b2581c0c31aa799376a5d690211f","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-11","para":"55-11","html":"
The classification of a lease as an operating lease under paragraphs
842-10-25-2 through 25-3
indicates that the lessee has not obtained control of the nonmonetary underlying asset as a result of the lease. Thus, the economic significance of the asset continues to depend heavily on the value of the future lease rentals, residual values, and associated costs that do not represent fixed sums of money. Therefore, an asset subject to an operating lease should be classified as nonmonetary.
","snippet":"The classification of a lease as an operating lease under paragraphs 842-10-25-2 through 25-3 indicates that the lessee has not obtained control of the nonmonetary underlying asset as a result of the lease. Thus, the eco…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a5109ab99cff57fc63c60fcdd894fc302b00df81cb733e6f4a1b298e4d2facec","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-12","para":"55-12","html":"
The interests of noncontrolling shareholders in the earnings and equity of subsidiaries are, from the consolidated entity's point of view, claims that are not fixed. Rather, they are residuals that will vary based on the subsidiary's earnings, dividends, and other transactions affecting its equity and so are nonmonetary. (See the following paragraph as to classification of capital stock of the entity or of its consolidated subsidiaries subject to mandatory redemption at fixed amounts.)
","snippet":"The interests of noncontrolling shareholders in the earnings and equity of subsidiaries are, from the consolidated entity's point of view, claims that are not fixed. Rather, they are residuals that will vary based on the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:045bb62116d24cedca3f669d1c88878d1e475a47ca5eaf5169102b1a42e577b3","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-13","para":"55-13","html":"
Such securities are claims of the stockholders to a fixed sum of money and therefore are monetary. Classification as a monetary item called for in paragraphs
255-10-55-1 through 55-13
is only for purposes of determining a purchasing power gain or loss. Those paragraphs do not address how such securities should be classified in balance sheets or the accounting for dividends on those securities.
","snippet":"Such securities are claims of the stockholders to a fixed sum of money and therefore are monetary. Classification as a monetary item called for in paragraphs 255-10-55-1 through 55-13 is only for purposes of determining …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1d53cd72b1df67a0362a2415f443003cb89d689d39ee1172a9020dfae092a409","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5350544c6a76f03631fc8c6701f795b6b990065ded12424fe6b7b0317337e7f4","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"255-10-55-14","para":"55-14","html":"
This Example illustrates formats that may be used to disclose the information required by this Subtopic for a manufacturing entity. An entity may choose to disclose the information required by paragraphs
255-10-50-3 through 50-16
in any of the following ways:
  1. a
    In a schedule of annual information (for example, Schedule 1 or Schedule 2), with notes to those schedules
  2. b
    In a five-year summary (for example, Schedule 3 or Schedule 4)
  3. c
    In a five-year summary with notes to that summary (for example, Schedule 5).
","snippet":"This Example illustrates formats that may be used to disclose the information required by this Subtopic for a manufacturing entity. An entity may choose to disclose the information required by paragraphs 255-10-50-3 thro…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56cc8fa1b75ea8bfde5919e69aae3bf078d448237e8b6b61043df852763948e7","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-15","para":"55-15","html":"
Many entities include amounts reported in the primary statements alongside current cost-constant purchasing power amounts in the five-year summary.
","snippet":"Many entities include amounts reported in the primary statements alongside current cost-constant purchasing power amounts in the five-year summary.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:96c718a0d8aca27f676bf1f064fdae42c1ce0c236cda3304ff46e00ffd87916b","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-16","para":"55-16","html":"
Entities are encouraged to provide more detailed discussions than the illustrative notes in this Example—especially discussion of the significance of the information as it relates to the circumstances of the entity (required by paragraph 255-10-50-10) and the principal types of information used to calculate current cost amounts (required by paragraph 255-10-50-16(c)). Illustrative calculations are given in paragraphs
255-10-55-22 through 55-89
. In the schedules that follow, the Consumer Price Index for All Urban Consumers is expressed in average U.S. dollars.
","snippet":"Entities are encouraged to provide more detailed discussions than the illustrative notes in this Example—especially discussion of the significance of the information as it relates to the circumstances of the entity (requ…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:935794879b13760cbb28ddfcf26c1718299924aa296e918fb3243858f4c5ae31","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-17","para":"55-17","html":"
The following table illustrates one format for the statement of income from continuing operations in a schedule of annual information.
","snippet":"The following table illustrates one format for the statement of income from continuing operations in a schedule of annual information.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9cef5b669e7f2422036efc14f7cd50708538c3402dd8a7ea40119efd0909186d","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-18","para":"55-18","html":"
The following table illustrates one format for the statement of income from continuing operations in a statement of annual information.
","snippet":"The following table illustrates one format for the statement of income from continuing operations in a statement of annual information.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:609ffa9b9aa03d2a273988aa19bb2b3688a1f7c8c02b7d461c7488f64a883cdc","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-19","para":"55-19","html":"
The following table illustrates one format for the five-year comparison of selected financial data.
","snippet":"The following table illustrates one format for the five-year comparison of selected financial data.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48c58aefef775d57e5de813b944585b0fbd627ffe786abe09396af4d663857a7","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-20","para":"55-20","html":"
The following table illustrates one format for the five-year comparison of selected financial data.
","snippet":"The following table illustrates one format for the five-year comparison of selected financial data.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:523150281a10fda83c3cda16384728709d0359f66e370fb3e08de4f47beacba9","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-21","para":"55-21","html":"
The following table illustrates one format for the five-year comparison of selected financial data.
","snippet":"The following table illustrates one format for the five-year comparison of selected financial data.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:318693f99cc4695cedff2b13a730566151258697e23fb5437c19bbfa4502968a","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-22","para":"55-22","html":"
The following paragraphs 255-10-55-23 through 55-89 illustrate the methodology that might be used in calculating the disclosures in paragraph
255-10-55-14 through 55-21
.
","snippet":"The following paragraphs 255-10-55-23 through 55-89 illustrate the methodology that might be used in calculating the disclosures in paragraph 255-10-55-14 through 55-21.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0bea313cbc3a42ea39a5f9b0a6dc21fa147b137114ba81d9ac281b1852e30979","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-23","para":"55-23","html":"
Computation of current cost information should be based on a detailed analysis of all transactions; however, the costs of preparing the information can be reduced with little loss of usefulness by simplifying the methods of calculation. Therefore, only cost of sales and depreciation expense need to be adjusted from the amounts shown in the primary income statement. Revenues, other expenses, and gains and losses need not be adjusted. Approximate methods of computation are acceptable for adjusting cost of sales and depreciation expense. The measurement of current cost is not illustrated.
","snippet":"Computation of current cost information should be based on a detailed analysis of all transactions; however, the costs of preparing the information can be reduced with little loss of usefulness by simplifying the methods…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:85aa6e5d619315bf530df55722c8e6051a2acbcc162c5109a82c74fd3c67fe85","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-24","para":"55-24","html":"
The objective in making these calculations is to obtain a reasonable degree of accuracy—complete precision is not required. Preparers are encouraged to devise short-cut methods of calculation, appropriate to their individual circumstances.
","snippet":"The objective in making these calculations is to obtain a reasonable degree of accuracy—complete precision is not required. Preparers are encouraged to devise short-cut methods of calculation, appropriate to their indivi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f683a62e1344ceba264a5b8247e4c8e7e13d1a7e301619492b2c5150c67f7e3a","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-25","para":"55-25","html":"
If inventories and cost of sales are accounted for under the last-in, first-out (LIFO) method in the primary financial statements, the only adjustment normally required in computing income from continuing operations would be to eliminate the effect of changing prices on any prior-period LIFO layer liquidation.
","snippet":"If inventories and cost of sales are accounted for under the last-in, first-out (LIFO) method in the primary financial statements, the only adjustment normally required in computing income from continuing operations woul…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64bb0085b411ed27265b1d780d979b7ce9d96b7724aef6e1ebf57c27d100b0b7","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-26","para":"55-26","html":"
Seven basic steps to restate historical cost information into current cost-constant purchasing power information are illustrated in paragraphs
255-10-55-23 through 55-89
:
  1. a
    Analyze inventory (at the beginning and end of the year) and cost of goods sold to determine when the costs were incurred.
  2. b
    Restate inventory and cost of goods sold into current cost.
  3. c
    Analyze property, plant, and equipment to determine when the related assets were acquired.
  4. d
    Restate property, plant, and equipment and depreciation, depletion, and amortization expense into current cost.
  5. e
    Identify the amount of net monetary items (see paragraphs
    255-10-55-1 through 55-13
    ) at the beginning and end of the period and changes during the period.
  6. f
    Compute the purchasing power gain or loss on net monetary items.
  7. g
    Compute the change in current cost of inventory and property, plant, and equipment and the related effect of the increase in the general price level.
","snippet":"Seven basic steps to restate historical cost information into current cost-constant purchasing power information are illustrated in paragraphs 255-10-55-23 through 55-89:\n(a) Analyze inventory (at the beginning and end o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1308a3f5761f0af05c2d9dc62ca8a485b07ee87af1fa1909bde9a7da3d53de9c","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-27","para":"55-27","html":"
The methodology illustrated in paragraphs
255-10-55-23 through 55-89
has been developed for the hypothetical entity, Parent Company. Parent Company has a wholly owned foreign subsidiary, Sub Company. Sub Company measures its operations in a functional currency other than the dollar. The changing prices disclosures for Parent Company and Sub Company are developed separately. Merging the amounts calculated for each entity results in a consolidated disclosure:
  1. a
    Paragraphs
    255-10-55-37 through 55-50
    illustrate the minimum recommended calculations for the domestic operations of Parent Company. A method of checking the arithmetic accuracy of the calculations is included in paragraph 255-10-55-51.
  2. b
    Paragraphs
    255-10-55-61 through 55-74
    illustrate the translate-restate method for Sub Company, a foreign subsidiary that does not use the dollar as a functional currency. A method of checking the arithmetic accuracy of the calculations is included in paragraph 255-10-55-71.
  3. c
    The results of the calculations described in (a) and (b) are summarized in paragraph 255-10-55-75 and are reflected in the illustrative disclosures in paragraphs
    255-10-55-14 through 55-21
    .
","snippet":"The methodology illustrated in paragraphs 255-10-55-23 through 55-89 has been developed for the hypothetical entity, Parent Company. Parent Company has a wholly owned foreign subsidiary, Sub Company. Sub Company measures…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07021e1e64805f3fdf47f0ee8505c8d47e48e8fafc76d474ae5e842e7d6446d0","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-28","para":"55-28","html":"
Paragraphs
255-10-55-76 through 55-89
illustrate the restate-translate method for Sub Company. A method of checking the arithmetic accuracy of the calculations is included in paragraphs
255-10-55-81 through 55-82
.
","snippet":"Paragraphs 255-10-55-76 through 55-89 illustrate the restate-translate method for Sub Company. A method of checking the arithmetic accuracy of the calculations is included in paragraphs 255-10-55-81 through 55-82.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6932eb3b8f0dbf1265f90f2593e761ad2b35a2793e6e23c94d8879eb10dafd90","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-29","para":"55-29","html":"
Throughout this Example, $ indicates nominal dollars, C$ indicates average 19X6 constant dollars, FC indicates nominal functional currency, C$E indicates dollar equivalents of FC amounts using the translate-restate method, CFC indicates average 19X6 constant functional currency, and CFC$ indicates the translated dollar equivalents of CFC amounts using the restate-translate method.
","snippet":"Throughout this Example, $ indicates nominal dollars, C$ indicates average 19X6 constant dollars, FC indicates nominal functional currency, C$E indicates dollar equivalents of FC amounts using the translate-restate metho…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:966a806ddeb95a14ff677ef975df261e8d76c019e71fff6828a30513a05d3241","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-30","para":"55-30","html":"
Historical cost-nominal financial statements are as follows.
","snippet":"Historical cost-nominal financial statements are as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a75e6def4b31b6a5d87d6819918a41205c822f7bbb2801a1eb58281c9a4a8c12","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-31","para":"55-31","html":"
The following table illustrates Parent Company's balance sheet.
","snippet":"The following table illustrates Parent Company's balance sheet.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b75f996efc13e37e2bbf0107296d5c4f55689124ea838743d683537201945434","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-32","para":"55-32","html":"
The following table illustrates Parent Company's statement of earnings and retained earnings.
","snippet":"The following table illustrates Parent Company's statement of earnings and retained earnings.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c534cd22390219d9d7160cdcc6238fc8b1af28a71a35d41a12231dc2b012d45","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-33","para":"55-33","html":"
Inventory and production:
  1. a
    Inventory is accounted for on a first-in, first-out (FIFO) basis and turns over four times per year. There is no significant amount of work in progress or raw materials.
  2. b
    At December 31, 19X6, and 19X5, inventory consisted of 900,000 units and 1,000,000 units respectively—representing production of the immediately preceding quarter. Management has measured the current cost of inventory at $73 per unit at December 31, 19X6 ($65,700,000), and $58 per unit at December 31, 19X5 ($58,000,000).
  3. c
    Costs were incurred and goods produced as follows.
    • \"
      (000s) 19X5 19X6 4th 1st 2nd 3rd 4th Total Historical costs \" $56,000 \" \" $39,560 \" \" $59,400 \" \" $42,040 \" \" $63,000 \" \" $204,000 \" Units produced \" 1,000 \" 618 900 618 900 \" 3,036 \" Units sold \" 1,000 \" 618 900 618 \" 3,136 \"
  4. d
    At December 31, 19X6, the selling price per unit was $85.
  5. e
    There were no write-downs or disposals of inventory.
","snippet":"Inventory and production:\n(a) Inventory is accounted for on a first-in, first-out (FIFO) basis and turns over four times per year. There is no significant amount of work in progress or raw materials.\n(b) At December 31, …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:824e57dfd26c54f2fb21698796673569878d4ab1a564b126dde0ec7a3549a3da","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-34","para":"55-34","html":"
Property, plant, and equipment:
  1. a
    Details of fixed assets at December 31, 19X6, are as follows.
    • \"
      (000s) Date Acquired Percent Depreciated Historical Cost Accumulated Depreciation 19W9 80 \" $50,000 \" \" $40,000 \" 19X0 70 \" 5,000 \" \" 3,500 \" 19X1 60 \" 5,000 \" \" 3,000 \" 19X2 50 \" 5,000 \" \" 2,500 \" 19X3 40 \" 5,000 \" \" 2,000 \" 19X4 30 \" 5,000 \" \" 1,500 \" 19X5 20 \" 10,000 \" \" 2,000 \" 19X6 10 \" 15,000 \" \" 1,500 \" \" $100,000 \" \" $56,000 \"
  2. b
    Depreciation is calculated at 10 percent per annum, straight line. A full year's depreciation is charged in the year of acquisition.
  3. c
    There were no disposals.
  4. d
    Management has measured the current cost of property, plant, and equipment at December 31, 19X6, and 19X5, as follows.
    • \"
      (000s) \"December 31, 19X6\" \"December 31, 19X5\" Date Acquired Current Cost Accumulated Depreciation Current Cost Accumulated Depreciation 19W9 \" $120,000 \" \" $96,000 \" \" $110,000 \" \" $77,000 \" 19X0 \" 10,000 \" \" 7,000 \" \" 6,000 \" \" 3,600 \" 19X1 \" 15,000 \" \" 9,000 \" \" 7,000 \" \" 3,500 \" 19X2 \" 18,000 \" \" 9,000 \" \" 12,000 \" \" 4,800 \" 19X3 \" 12,000 \" \" 4,800 \" \" 10,000 \" \" 3,000 \" 19X4 \" 17,000 \" \" 5,100 \" \" 15,000 \" \" 3,000 \" 19X5 \" 12,000 \" \" 2,400 \" \" 10,000 \" \" 1,000 \" 19X6 \" 16,000 \" \" 1,600 \" - - \" 220,000 \" \" $134,900 \" \" 170,000 \" \" $95,900 \" Accumulated depreciation \" 134,900 \" \" 95,900 \" Net current cost \" $85,100 \" \" $74,100 \"
  5. e
    The recoverable amount has been determined by management to be in excess of current cost, net of accumulated depreciation.
","snippet":"Property, plant, and equipment:\n(a) Details of fixed assets at December 31, 19X6, are as follows.\n(b) Depreciation is calculated at 10 percent per annum, straight line. A full year's depreciation is charged in the year o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a0b000b151eeaf74239d69ee71ccd046df5c8b1794f2fc4dd23fc368cef08dc","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-35","para":"55-35","html":"
Dividends were paid at the rate of $750,000 per quarter.
","snippet":"Dividends were paid at the rate of $750,000 per quarter.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4562d39563fa07e529b78d6ef1e8aaf0436fdbe00fa5ffac3d29293f0005cb65","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-36","para":"55-36","html":"
Consumer Price Index for All Urban Consumers (from the Survey of Current Business, U.S. Department of Commerce, Bureau of Economic Analysis, January 19X7) is as follows.
","snippet":"Consumer Price Index for All Urban Consumers (from the Survey of Current Business, U.S. Department of Commerce, Bureau of Economic Analysis, January 19X7) is as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc9c8b2b9525773b4e2f6de22341464e900bc892113d9dbd1751f710f4903b01","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-37","para":"55-37","html":"
The objective is to express the supplementary information in average 19X6 dollars. As indicated in paragraph 255-10-50-34, nominal dollar measurements may be used for all elements of net assets other than inventory and property, plant, and equipment. As indicated in paragraph 255-10-50-39, nominal dollar measurements may be used for all elements of income from continuing operations other than cost of sales and depreciation.
","snippet":"The objective is to express the supplementary information in average 19X6 dollars. As indicated in paragraph 255-10-50-34, nominal dollar measurements may be used for all elements of net assets other than inventory and p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:82ffd47abb0ec10823a9133c462a6f69c492d39bfdf75cd744d31641e7a960e8","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-38","para":"55-38","html":"
Step 1: Analysis of Inventory and Cost of Goods Sold. Inventory is assumed to turn over four times per year. Therefore, inventory with a historical cost of $63,000,000 at December 31, 19X6, is assumed to have been acquired during the fourth quarter of 19X6, and inventory with a historical cost of $56,000,000 at December 31, 19X5, is assumed to have been acquired in the fourth quarter of 19X5.
","snippet":"Step 1: Analysis of Inventory and Cost of Goods Sold. Inventory is assumed to turn over four times per year. Therefore, inventory with a historical cost of $63,000,000 at December 31, 19X6, is assumed to have been acquir…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1591966da2a022b2d8120e2875b635554f34cb6a4f9aa63a7f89e014527eafb4","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-39","para":"55-39","html":"
Step 2: Current Cost of Inventory and Cost of Goods Sold. Cost of goods sold, current cost is as follows.
","snippet":"Step 2: Current Cost of Inventory and Cost of Goods Sold. Cost of goods sold, current cost is as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9eb27ed5fefbcb5f3b6a905ac92f2aea9ddd3a36708282d9982d9a3f80a16e16","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-40","para":"55-40","html":"
The current cost amounts should be compared with the recoverable amount. This is illustrated below.
","snippet":"The current cost amounts should be compared with the recoverable amount. This is illustrated below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bb744114472d1f8fb6aee9ad054483cbcb3a6a1e3d3b69e3b1a8bde16d586bfb","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-41","para":"55-41","html":"
Step 3: Analysis of Property, Plant, and Equipment and Depreciation. An analysis of property, plant, and equipment was given in paragraph 255-10-55-34.
","snippet":"Step 3: Analysis of Property, Plant, and Equipment and Depreciation. An analysis of property, plant, and equipment was given in paragraph 255-10-55-34.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9026d317b413cff23d0fcce033d4e266f8968ed40c303a221fac29e8c816758c","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-42","para":"55-42","html":"
Step 4: Current Cost of Property, Plant, and Equipment and Depreciation. It will usually be appropriate to calculate current cost depreciation, depletion, and amortization expense by reference to average current cost of the related assets (current cost of assets at beginning of year + current cost of assets at end of year ÷ 2), as follows.
","snippet":"Step 4: Current Cost of Property, Plant, and Equipment and Depreciation. It will usually be appropriate to calculate current cost depreciation, depletion, and amortization expense by reference to average current cost of …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:05dfdc2b8f26ba59738d4c6d5bf5d8496baca296b283bd53d0df113d61e764ba","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-43","para":"55-43","html":"
In this Example, management has determined that the recoverable amount is greater than net current cost of property, plant, and equipment and there is no write-down.
","snippet":"In this Example, management has determined that the recoverable amount is greater than net current cost of property, plant, and equipment and there is no write-down.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:081c9b15d75701189bbd9fe7f073e4ca24b85019cad9a28191b3c8d44a68b32b","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-44","para":"55-44","html":"
Step 5: Identification of Net Monetary Items. Net monetary items (see paragraphs
255-10-55-30 through 55-32
) are as follows.
","snippet":"Step 5: Identification of Net Monetary Items. Net monetary items (see paragraphs 255-10-55-30 through 55-32) are as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3cab5ab7a9ad76f814b7f6b150dd75b2970425083acf30837865555193a64f9f","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-45","para":"55-45","html":"
Step 6: Computation of the Purchasing Power Gain or Loss on Net Monetary Items. The amount of net monetary items at the beginning of the year, changes in the net monetary items, and the amount at the end of the year are restated into average 19X6 dollars. The purchasing power gain or loss on net monetary items is then the balancing item as illustrated in the following table.
","snippet":"Step 6: Computation of the Purchasing Power Gain or Loss on Net Monetary Items. The amount of net monetary items at the beginning of the year, changes in the net monetary items, and the amount at the end of the year are …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e9dc9c30a4ba800a887cceace272233ad3a3d21116e23ad977ed5d05169b47f","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-46","para":"55-46","html":"
Step 7: Computation of the Change in Current Cost of Inventory and Property, Plant, and Equipment and the Effect of General Price-Level Changes. The increase in current cost of inventories is as follows.
","snippet":"Step 7: Computation of the Change in Current Cost of Inventory and Property, Plant, and Equipment and the Effect of General Price-Level Changes. The increase in current cost of inventories is as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e88ee45f7dc8522cf27cd8ba0e545794c648ff4f1ccc5eb6054b8b82345d7d9","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-47","para":"55-47","html":"
The inflation component of the increase in current cost amount is the difference between the nominal dollar and constant dollar measures. The following table uses the numbers from the preceding paragraph.
","snippet":"The inflation component of the increase in current cost amount is the difference between the nominal dollar and constant dollar measures. The following table uses the numbers from the preceding paragraph.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41367ec13e43f2a15e65bc7f1262f85d832da9f2d8e035c1d912a95d1d5b7d90","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-48","para":"55-48","html":"
The increase in current cost of property, plant, and equipment is as follows.
","snippet":"The increase in current cost of property, plant, and equipment is as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:871c339961311a138b9c8e033789bf76886a2e585f2a540cef59b0339f5753c6","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-49","para":"55-49","html":"
The inflation component of the increase in current cost amount is the difference between the nominal dollar and constant dollar measures. The following table uses the numbers from the preceding paragraph.
","snippet":"The inflation component of the increase in current cost amount is the difference between the nominal dollar and constant dollar measures. The following table uses the numbers from the preceding paragraph.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:29f8fc357e9b4f5b19684b3624b9ccbcd36cf74a9374e7e3ba2e0a078abb8508","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-50","para":"55-50","html":"
The following table summarizes paragraphs 255-10-55-47 and the preceding paragraph.
","snippet":"The following table summarizes paragraphs 255-10-55-47 and the preceding paragraph.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b18f6f0e9578c5a52f2a56e7a0514d6b0d35d48a461b95688020b06ecb520dc","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-51","para":"55-51","html":"
A reconciliation of shareholders' equity (net assets) on a current cost - constant purchasing power basis acts as a check on the arithmetic accuracy of the calculations. Changes in shareholders' equity during 19X6 in average 19X6 dollars appear in the following table.
","snippet":"A reconciliation of shareholders' equity (net assets) on a current cost - constant purchasing power basis acts as a check on the arithmetic accuracy of the calculations. Changes in shareholders' equity during 19X6 in ave…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed8ad75b5bec313a654ce13b584e09ef46b62ed1d12bf30731755bab0d044a6a","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-52","para":"55-52","html":"
To facilitate the illustration of consolidated amounts in paragraph 255-10-55-75, investment in Sub Company has been excluded from net assets of Parent Company in the preceding paragraph.
","snippet":"To facilitate the illustration of consolidated amounts in paragraph 255-10-55-75, investment in Sub Company has been excluded from net assets of Parent Company in the preceding paragraph.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:656dfc8ddf563e2ce35f8b0b3a64fac444d22c2733c9052b04d4b986048508b4","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-53","para":"55-53","html":"
The functional currency financial statements of Sub Company appear in the following tables.
","snippet":"The functional currency financial statements of Sub Company appear in the following tables.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be7170a855539ed54054620bf7b57c0a141465b7d57896b7c66cdddd61e098f2","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-54","para":"55-54","html":"
For simplicity, Sub Company is assumed to have a fixed asset but no inventory. The mechanics of restating inventory and cost of goods sold on a current cost basis are essentially the same as those illustrated for property, plant, and equipment.
","snippet":"For simplicity, Sub Company is assumed to have a fixed asset but no inventory. The mechanics of restating inventory and cost of goods sold on a current cost basis are essentially the same as those illustrated for propert…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41d1eba898b2d65cfe448de7618c955648eae736f82cba2ef4628e70391ff043","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-55","para":"55-55","html":"
The fixed asset was acquired on December 31, 19X4. It is depreciated on a straight-line basis over 10 years and is expected to have no salvage value. There were no acquisitions or disposals of assets during the year.
","snippet":"The fixed asset was acquired on December 31, 19X4. It is depreciated on a straight-line basis over 10 years and is expected to have no salvage value. There were no acquisitions or disposals of assets during the year.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58368747605104b9572441fd72d8aa1c1634cd99d0c3280cc65e8eee25febf0e","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-56","para":"55-56","html":"
Exchange rates between the functional currency and the dollar are as follows.
","snippet":"Exchange rates between the functional currency and the dollar are as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70078dea7012ef30737bbd48b478a49ac54d26b36f9fa39e2497df0b5b004b73","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-57","para":"55-57","html":"
Management has measured the current cost of equipment at December 31, 19X6, and 19X5, as follows.
","snippet":"Management has measured the current cost of equipment at December 31, 19X6, and 19X5, as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:11d3c2498a72b61b5a6e87ad617129c2b41d96fddb5eb99862f8b4ff843e6de7","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-58","para":"55-58","html":"
The recoverable amount has been determined to be in excess of net current cost at both dates.
","snippet":"The recoverable amount has been determined to be in excess of net current cost at both dates.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15f3f2435399724194163cdc1092e90ff7ad41ab67d8139403999bd41a6a0d8f","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-59","para":"55-59","html":"
Current cost equity in nominal FC at the beginning and end of the year may be computed by adding net monetary items and net property, plant, and equipment at current cost. To determine current cost equity in nominal dollars, those FC amounts are translated at the appropriate exchange rate.
","snippet":"Current cost equity in nominal FC at the beginning and end of the year may be computed by adding net monetary items and net property, plant, and equipment at current cost. To determine current cost equity in nominal doll…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c3044e189964e951e5e0df7b9b294e0e25d028209205f67f91783f9c07194a1d","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-60","para":"55-60","html":"
The U.S. and local general price level indexes are as follows.
","snippet":"The U.S. and local general price level indexes are as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ecbc7a21889d41ce59e9de56ffa5c51b264c4abeb3b1306ff427065715a74d7","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-61","para":"55-61","html":"
To apply the translate-restate method, amounts measured in nominal FC are first translated into their dollar equivalents. Changes in those dollar equivalent amounts are then restated to reflect the effects of U.S. inflation.
","snippet":"To apply the translate-restate method, amounts measured in nominal FC are first translated into their dollar equivalents. Changes in those dollar equivalent amounts are then restated to reflect the effects of U.S. inflat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7b8d10f32c355153c15bdd124e4e73d50753f0e4a176a97c341cdb74f640719","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-62","para":"55-62","html":"
The first step is to determine current cost depreciation for the year as follows.
","snippet":"The first step is to determine current cost depreciation for the year as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:18c73d640828fcaea406d833bac78c2a7ed93c98e868a9ff9859d3a3a8954edd","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-63","para":"55-63","html":"
Current cost depreciation expense for the year is FC 475,000 (FC 4,750,000 × 10%). Computation of current cost depreciation and income from continuing operations does not involve use of a general price level index if measurements are made in average-for-the-year currency units. Accordingly, reported current cost depreciation under the translate-restate method is C$E 523,000 (FC 475,000 x $1.10).
","snippet":"Current cost depreciation expense for the year is FC 475,000 (FC 4,750,000 × 10%). Computation of current cost depreciation and income from continuing operations does not involve use of a general price level index if mea…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:91c6fd40cc9810ddf65f491a38cf50b4896765f4b25637d77366ca7f6f048361","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-64","para":"55-64","html":"
Income from continuing operations on a current cost basis is computed by simply replacing historical cost depreciation in income from continuing operations in the primary financial statements with the current cost amount. Accordingly, current cost income from continuing operations is as follows.
","snippet":"Income from continuing operations on a current cost basis is computed by simply replacing historical cost depreciation in income from continuing operations in the primary financial statements with the current cost amount…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02dc1862a0288133a3dedfbf5eda0b4d54a72235a1126ba53d086c17fd0d8654","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-65","para":"55-65","html":"
Reported current cost income from continuing operations under the translate-restate method is C$E 247,000 (FC 225,000 × $1.10). Current cost income has been rounded down from $247,500 to $247,000. This is necessary because current cost depreciation was rounded up to $523,000 from $522,500 and current cost income is a remainder of this number.
","snippet":"Reported current cost income from continuing operations under the translate-restate method is C$E 247,000 (FC 225,000 × $1.10). Current cost income has been rounded down from $247,500 to $247,000. This is necessary becau…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d35e5cbfbc6a84e88eaccb9962bebe02a5ff4220202b2a06ccdde12f5055a5fc","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-66","para":"55-66","html":"
The second step is to compute the change in the current cost of equipment and the effect of the increase in the general price level. To measure the increase in current cost of equipment in nominal FC dollar equivalents, the effect of the exchange rate change must be excluded. One way to accomplish this is to translate the December 31, 19X5, and 19X6, FC current cost amounts to dollar equivalents at the average exchange rate and then restate those dollar amounts to average 19X6 constant dollar equivalents.
","snippet":"The second step is to compute the change in the current cost of equipment and the effect of the increase in the general price level. To measure the increase in current cost of equipment in nominal FC dollar equivalents, …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2a242206829808365afa2890ad98377dd2b8903e54aa4d6a5d28537fdbc5ed6","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-67","para":"55-67","html":"
The inflation component of the increase in current cost amount is the difference between the nominal dollar and the constant dollar equivalent amounts, as follows.
","snippet":"The inflation component of the increase in current cost amount is the difference between the nominal dollar and the constant dollar equivalent amounts, as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e21e84f36113266c2afe2c43cc8aef2f13013378b47b592acc712619815932a0","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-68","para":"55-68","html":"
The third step is to compute the purchasing power gain or loss on net monetary items. Under the translate-restate method, the translated beginning and ending net monetary liabilities are restated to average 19X6 dollars. The U.S. purchasing power gain is then the balancing amount.
","snippet":"The third step is to compute the purchasing power gain or loss on net monetary items. Under the translate-restate method, the translated beginning and ending net monetary liabilities are restated to average 19X6 dollars.…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4c31ff80523b1718e986ba8ec334fa3d29ac31f17895acb10d66831b93056cb3","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-69","para":"55-69","html":"
In some circumstances, this procedure will include a part of the effect of exchange rate changes on net monetary items in the purchasing power gain or loss. A more precise computation that would completely exclude the effect of exchange rate changes would be to compute a separate purchasing power gain or loss for each functional currency operation in a manner similar to that illustrated in paragraphs
255-10-55-66 through 55-67
for the increase in specific prices. For Sub Company, that alternative method produces a purchasing power gain of C$E 18.
","snippet":"In some circumstances, this procedure will include a part of the effect of exchange rate changes on net monetary items in the purchasing power gain or loss. A more precise computation that would completely exclude the ef…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f223ed4aecd1d395bc224817957f08d87941cfee45f070a16c918e56f6a0922","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-70","para":"55-70","html":"
The first procedure illustrated is less costly because it can be applied on a consolidated basis, and it generally provides a reasonable approximation. Accordingly, that method is acceptable. For this exercise, the more precise computation is used.
","snippet":"The first procedure illustrated is less costly because it can be applied on a consolidated basis, and it generally provides a reasonable approximation. Accordingly, that method is acceptable. For this exercise, the more …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:428362478241d5f876eee2f22e51ab1335f52828315e2e61cc6016e06c88886e","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-71","para":"55-71","html":"
A reconciliation of equity serves as a check of the calculations and is a convenient way to compute the translation adjustment.
","snippet":"A reconciliation of equity serves as a check of the calculations and is a convenient way to compute the translation adjustment.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:55f8e014087e4a60064943930b07c76ee868f6dc8f155b34a258045590d9b530","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-72","para":"55-72","html":"
The preceding paragraph shows that the translation adjustment is the amount needed to balance the reconciliation of equity. The translation adjustment may be checked by computing the effect of changes in the exchange rate on beginning-of-year equity and on the increase or decrease in equity during the year. To check the translation adjustment determined under the translate-restate method: translate the beginning- and end-of-year equity on a C$ basis into FC amounts and use those FC amounts to compute the effect on equity of changes in the exchange rate.
","snippet":"The preceding paragraph shows that the translation adjustment is the amount needed to balance the reconciliation of equity. The translation adjustment may be checked by computing the effect of changes in the exchange rat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7e0d2a274e7bc268b737865c1b4ac5af4bc7e89dd8c09499ab0e469b2ed93210","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-73","para":"55-73","html":"
If the short-cut method for determining the purchasing power gain or loss described in paragraphs
255-10-55-68 through 55-70
were followed, the translation adjustment would be $(625).
","snippet":"If the short-cut method for determining the purchasing power gain or loss described in paragraphs 255-10-55-68 through 55-70 were followed, the translation adjustment would be $(625).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e9cd64968e27f9093d93c075cf0efb511b88a8d468b87c22fa33226a86212ab","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-74","para":"55-74","html":"
Parent Company prepares its changing prices disclosures on a consolidated basis and complies with the minimum requirements in determining current cost income from continuing operations (see paragraphs
255-10-50-39 through 50-40
). Accordingly, revenue, general and administrative expenses, interest, and income taxes (see paragraph 255-10-50-41) are shown at amounts reported in the historical cost financial statements. For Sub Company, those amounts are translated into dollars as follows.
","snippet":"Parent Company prepares its changing prices disclosures on a consolidated basis and complies with the minimum requirements in determining current cost income from continuing operations (see paragraphs 255-10-50-39 throug…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0fc5b8d3f1ca79c647e04725cf9c6f75894f70b295bdce38f7c0c6790112521c","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-75","para":"55-75","html":"
The \"Total\" column of the following schedule provides the figures in Schedule 2 of paragraph 255-10-55-18.
","snippet":"The \"Total\" column of the following schedule provides the figures in Schedule 2 of paragraph 255-10-55-18.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d3e47f5de57289efc594ad5ff82dfefe146da1e7de5f6d558a0b77e57c0f052","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-76","para":"55-76","html":"
To apply the restate-translate method, the steps illustrated in paragraphs
255-10-55-61 through 55-73
are followed except that all restatements to reflect the effects of general inflation are made using the local general price level index before translation to dollar equivalents.
","snippet":"To apply the restate-translate method, the steps illustrated in paragraphs 255-10-55-61 through 55-73 are followed except that all restatements to reflect the effects of general inflation are made using the local general…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5a2cf7f60a3aeb4bbdf3a0761ee33c0d136717040107bb6e7d1d4033208039d9","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-77","para":"55-77","html":"
Current cost depreciation and income from continuing operations are FC 475,000 and FC 225,000, respectively, as determined in paragraphs
255-10-55-62 through 55-65
.
","snippet":"Current cost depreciation and income from continuing operations are FC 475,000 and FC 225,000, respectively, as determined in paragraphs 255-10-55-62 through 55-65.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d77b2ca877df7030c7dc14e1ca1e833984d2692e002ca6bd56c109470e20d0c","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-78","para":"55-78","html":"
To apply the restate-translate method, the FC amount of net monetary items at the beginning of the year, changes in the net monetary items, and the amount at the end of the year are restated into average 19X6 CFC. The purchasing power gain or loss on net monetary items is then the balancing item.
","snippet":"To apply the restate-translate method, the FC amount of net monetary items at the beginning of the year, changes in the net monetary items, and the amount at the end of the year are restated into average 19X6 CFC. The pu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b71d1e517a54acd95e429418b628ee2d22c8080b4842dbc8168b337b799475a5","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-79","para":"55-79","html":"
Under the restate-translate method, the local index is used to restate the beginning and ending current cost FC amounts into average 19X6 CFC.
","snippet":"Under the restate-translate method, the local index is used to restate the beginning and ending current cost FC amounts into average 19X6 CFC.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:613b3f727a68f996cb031c9dbf5c80e48c9e50b7642d278c4d74a0baa7d10b44","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-80","para":"55-80","html":"
The inflation component of the increase in current cost amount is the difference between the nominal functional currency and constant functional currency amounts.
","snippet":"The inflation component of the increase in current cost amount is the difference between the nominal functional currency and constant functional currency amounts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:186611b721f3e05cc53e0ef632ac8a9c26ea837d623f6607a65829003a909af1","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-81","para":"55-81","html":"
As with the translate-restate method, a reconciliation of equity acts as a check of the calculations. A reconciliation of equity also is a convenient point at which to translate the functional currency amounts determined in the preceding tables into dollar equivalents and is a convenient way to compute the translation and parity adjustments.
","snippet":"As with the translate-restate method, a reconciliation of equity acts as a check of the calculations. A reconciliation of equity also is a convenient point at which to translate the functional currency amounts determined…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9d3774479f05966ea4e45d05837d8c201b1a62c7bae909260c05c78b9ae48b7","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-82","para":"55-82","html":"
If beginning and ending equity are restated to average 19X6 CFC using the local index, the reconciliation of equity under the restate-translate method would be as follows.
","snippet":"If beginning and ending equity are restated to average 19X6 CFC using the local index, the reconciliation of equity under the restate-translate method would be as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3cea87f4322c2b937a6131faa9fe6353b91c3c80684f0b53ff739226bb65a7ca","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-83","para":"55-83","html":"
The translation adjustment is the amount needed to balance the CFC$ reconciliation of equity. The adjustment may be computed as the sum of the following:
  1. a
    The change in exchange rates during the period multiplied by the restated amount of net assets at the beginning of the period
  2. b
    The difference between the average exchange rate for the period and the end-of-period exchange rate multiplied by the increase or decrease in restated net assets for the period.
","snippet":"The translation adjustment is the amount needed to balance the CFC$ reconciliation of equity. The adjustment may be computed as the sum of the following:\n(a) The change in exchange rates during the period multiplied by t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:151dc7ef886d20eda89517a57ea8d4f5adef1be7cc2aa5210e3588b0c867ec71","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-84","para":"55-84","html":"
Accordingly, the translation adjustment under the restate-translate method is as follows.
","snippet":"Accordingly, the translation adjustment under the restate-translate method is as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:857325ba68dd011ecb509cfb9af36ac2924b7466e1fe4a34bd0f7332deaacec7","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-85","para":"55-85","html":"
The reconciliation of equity in paragraph 255-10-55-82, in which beginning-of-year and end-of-year equity are stated in average 19X6 CFC, is needed to calculate the translation adjustment in CFC$. However, beginning- and end-of-year equity and the increase in equity must be stated in average 19X6 constant dollars in the supplementary current cost information.
","snippet":"The reconciliation of equity in paragraph 255-10-55-82, in which beginning-of-year and end-of-year equity are stated in average 19X6 CFC, is needed to calculate the translation adjustment in CFC$. However, beginning- and…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87b566ae459cd17d0ad7dbe711186ee9a77de4355522f4f665d26c1a2b3244d9","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-86","para":"55-86","html":"
Beginning and end-of-year equity in average 19X6 constant dollars are C$ 3,000,000 and C$ 3,736,000, respectively, as computed in paragraph 255-10-55-71. Thus, the overall increase in U.S. purchasing power for the year is C$ 3,736,000 - C$ 3,000,000 = C$ 736,000. However, the reconciliation of equity in paragraph 255-10-55-82 indicates that the increase in equity for the year is CFC$ 244,000 (CFC$ 3,470,000 - CFC$ 3,226,000).
","snippet":"Beginning and end-of-year equity in average 19X6 constant dollars are C$ 3,000,000 and C$ 3,736,000, respectively, as computed in paragraph 255-10-55-71. Thus, the overall increase in U.S. purchasing power for the year i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:df3f521fd5f7c080b7d09db71fac2c35b66df07e704ab905397a4c32cf0c32ba","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-87","para":"55-87","html":"
The difference between C$ 736,000 and CFC$ 244,000 is the parity adjustment needed to adjust the ending net investment and the increase in the net investment to measures in average 19X6 constant dollars. Accordingly, the parity adjustment is C$ 736,000 - CFC$ 244,000 = $492,000. That amount represents the sum of the following:
  1. a
    The effect of the difference between local and U.S. inflation from December 31, 19X5, average for 19X6 on the restatement of opening equity to average units
  2. b
    The effect of the difference between local and U.S. inflation from average for 19X6 to December 31, 19X6, the restatement of ending nominal dollar equity to average units.
","snippet":"The difference between C$ 736,000 and CFC$ 244,000 is the parity adjustment needed to adjust the ending net investment and the increase in the net investment to measures in average 19X6 constant dollars. Accordingly, the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2446cc78337d1c41fb03dd07d47edae0640a4c2695e6646d9f345bdac5a5b71","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-88","para":"55-88","html":"
The parity adjustment would be calculated as follows.
","snippet":"The parity adjustment would be calculated as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75cfc2b33b0c54dfc82b840ab838f1ff892cb7a6b3131df39c0a769058dadc03","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},{"citation":"255-10-55-89","para":"55-89","html":"
For display purposes, the parity adjustment may be combined with the $(616,000) translation adjustment (see paragraphs
255-10-55-83 through 55-84
). Accordingly, the net translation adjustment disclosed in the supplementary current cost information prepared using the restate-translate method would be $(616,000) + $492,000 = $(124,000). The components of current cost information based on the restate-translate method thus would be as follows.
","snippet":"For display purposes, the parity adjustment may be combined with the $(616,000) translation adjustment (see paragraphs 255-10-55-83 through 55-84). Accordingly, the net translation adjustment disclosed in the supplementa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7327bf4e11c177b658f5c0e66119666b77cf74a4a7c273bb13965196fa01b1d6","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87fa193f4a3973fcc08ab214fd43952e099b1219b07b5146e002c4abe4513d1a","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ec5deeb4436f0b6cc93853ec4c6c690903dfffe411a34960b21b2808d94bf97","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ec5deeb4436f0b6cc93853ec4c6c690903dfffe411a34960b21b2808d94bf97","downloaded_from":"2026-09-09T23:18:26.859Z","last_downloaded_at":"2026-09-09T23:18:26.859Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481806","source_sha256":"a223ea520a18a18981623ec306c3db99150c2eb8cacee37c900634db35351f8d"}}