{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/830/10/#10-objectives","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":"830","topic_title":"Foreign Currency Matters","subtopic":"830-10","subtopic_title":"Overall","section":{"number":"10","label":"10 Objectives","anchor":"10-objectives","is_sec":false,"groups":[{"block":null,"heading":"Objectives of Translation","paragraphs":[{"citation":"830-10-10-1","para":"10-1","html":"
Financial statements are intended to present information in financial terms about the performance, financial position, and cash flows of a reporting entity. For this purpose, the financial statements of separate entities within a reporting entity, which may exist and operate in different economic and currency environments, are consolidated and presented as though they were the financial statements of a single reporting entity. Because it is not possible to combine, add, or subtract measurements expressed in different currencies, it is necessary to translate into a single reporting currency those assets, liabilities, revenues, expenses, gains, and losses that are measured or denominated in a foreign currency. Paragraph 830-10-55-1 discusses the meaning of measurement in a foreign currency.
","snippet":"Financial statements are intended to present information in financial terms about the performance, financial position, and cash flows of a reporting entity. For this purpose, the financial statements of separate entities…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:480dc3531985de0deeb9d06ac5ba8173fa6010bcf00aeaefff3a5b8c3d8c447c","downloaded_from":"2026-09-10T01:46:15.893Z","last_downloaded_at":"2026-09-10T01:46:15.893Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481930","source_sha256":"051b7280345b49a9a55ded2468b726e5d2d67c68ccd10df0ffbc0a183b09be90"}},{"citation":"830-10-10-2","para":"10-2","html":"
The unity presented by such translation does not alter the underlying significance of the results and relationships of the constituent parts of the reporting entity. It is only through the effective operation of its constituent parts that the reporting entity as a whole is able to achieve its purpose. Accordingly, the translation of the financial statements of each component entity of a reporting entity should accomplish both of the following objectives:
  1. a
    Provide information that is generally compatible with the expected economic effects of a rate change on a reporting entity's cash flows and equity
  2. b
    Reflect in consolidated statements the financial results and relationships of the individual consolidated entities as measured in their functional currencies in conformity with U.S. generally accepted accounting principles (GAAP).
","snippet":"The unity presented by such translation does not alter the underlying significance of the results and relationships of the constituent parts of the reporting entity. It is only through the effective operation of its cons…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf528b6a88c7785b6e6404986a2a85b474d3241f4bad42fa43ad9eb4d82610d4","downloaded_from":"2026-09-10T01:46:15.893Z","last_downloaded_at":"2026-09-10T01:46:15.893Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481930","source_sha256":"051b7280345b49a9a55ded2468b726e5d2d67c68ccd10df0ffbc0a183b09be90"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c63df640dae8022a44c57ce1c32d047bc28f6ae7e8aaad15f1b54ba6976d143f","downloaded_from":"2026-09-10T01:46:15.893Z","last_downloaded_at":"2026-09-10T01:46:15.893Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481930","source_sha256":"051b7280345b49a9a55ded2468b726e5d2d67c68ccd10df0ffbc0a183b09be90"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f66fe3d1b82e0499b08fab24f0e200588a9b20fe943643268c6fd83cb8715c84","downloaded_from":"2026-09-10T01:46:15.893Z","last_downloaded_at":"2026-09-10T01:46:15.893Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481930","source_sha256":"051b7280345b49a9a55ded2468b726e5d2d67c68ccd10df0ffbc0a183b09be90"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f66fe3d1b82e0499b08fab24f0e200588a9b20fe943643268c6fd83cb8715c84","downloaded_from":"2026-09-10T01:46:15.893Z","last_downloaded_at":"2026-09-10T01:46:15.893Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481930","source_sha256":"051b7280345b49a9a55ded2468b726e5d2d67c68ccd10df0ffbc0a183b09be90"}}