# ASC 830-10-05: Foreign Currency Matters — Overall — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/830/10/#05-overview-and-background)

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.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-10T01:46:12.556Z to 2026-09-10T01:46:12.556Z

Record version: sha256:9829791515c30237eec484fdbded88c0d2cf9b30c94f6961d17f8e4be985a329

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 830-10-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/830/10/#05-overview-and-background)

SEC content: no

##### [830-10-05-1](https://asc.understandingaccounting.org/asc/830/10/#830-10-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:46:12.556Z to 2026-09-10T01:46:12.556Z

Record version: sha256:8341cf88e0938cf231b7538a2a18287c58e3498036cd6d4c2413b005bc1a15a0

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The [Foreign Currency](https://asc.understandingaccounting.org/glossary/f/#foreign-currency "A currency other than the functional currency of the entity being referred to (for example, the dollar could be a foreign currency for a foreign entity). Composites of currencies, such as the Special Drawing Rights, used to set prices or denominate amounts of loans, and so forth, have the characteristics of foreign currency.") Matters Topic provides guidance on [foreign currency transactions](https://asc.understandingaccounting.org/glossary/f/#foreign-currency-transactions "Transactions whose terms are denominated in a currency other than the entity's functional currency. Foreign currency transactions arise when a reporting entity does any of the following: Buys or sells on credit goods or services whose prices are denominated in foreign currency Borrows or lends funds and the amounts payable or receivable are denominated in foreign currency Is a party to an unperformed forward exchange contract For other reasons, acquires or disposes of assets, or incurs or settles liabilities denominated in foreign currency.") and [translation](https://asc.understandingaccounting.org/glossary/t/#translation "See Foreign Currency Translation.") of financial statements. This Topic includes the following Subtopics:

1.  a
    
    Overall
    
2.  b
    
    Foreign Currency Transactions
    
3.  c
    
    Translation of Financial Statements
    
4.  d
    
    Statement of Cash Flows
    
5.  e
    
    Income Taxes.