# ASC 740-830-15: Income Taxes — Foreign Currency Matters — 15 Scope and Scope Exceptions

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/740/830/#15-scope-and-scope-exceptions)

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## ASC 740-830-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/740/830/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [740-830-15-1](https://asc.understandingaccounting.org/asc/740/830/#740-830-15-1)

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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 830-10-15, with specific qualifications noted below.

#### Entities

##### [740-830-15-2](https://asc.understandingaccounting.org/asc/740/830/#740-830-15-2)

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The guidance in this Subtopic applies to all entities operating in foreign countries.

#### Transactions

##### [740-830-15-3](https://asc.understandingaccounting.org/asc/740/830/#740-830-15-3)

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The guidance in this Subtopic applies to certain specified deferred tax accounting matters, specifically to the income [tax consequences](https://asc.understandingaccounting.org/glossary/t/#tax-consequences "The effects on income taxes—current or deferred—of an event.") of changes to tax or financial reporting bases from their restatements caused by:

1.  a
    
    Changes in an entity's [functional currency](https://asc.understandingaccounting.org/glossary/f/#functional-currency "An entity's functional currency is the currency of the primary economic environment in which the entity operates; normally, that is the currency of the environment in which an entity primarily generates and expends cash. (See paragraphs 830-10-45-2830-10-45-3830-10-45-4830-10-45-5830-10-45-6 and 830-10-55-3830-10-55-4830-10-55-5830-10-55-6830-10-55-7.)")
    
2.  b
    
    Price-level related changes
    
3.  c
    
    A [foreign entity](https://asc.understandingaccounting.org/glossary/f/#foreign-entity "An operation (for example, subsidiary, division, branch, joint venture, and so forth) whose financial statements are both: Prepared in a currency other than the reporting currency of the reporting entity Combined or consolidated with or accounted for on the equity basis in the financial statements of the reporting entity.")'s functional currency being different from its [local currency](https://asc.understandingaccounting.org/glossary/l/#local-currency "The currency of a particular country being referred to.").