{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/830/10/#15-scope-and-scope-exceptions","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":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"830-10-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the <a href=\"/glossary/f/#foreign-currency\" class=\"term\" title=\"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.\"><span>Foreign Currency</span></a> Matters Topic. Unless explicitly addressed within specific Subtopics, the following scope guidance applies to all Subtopics of the Foreign Currency Matters Topic.</div></div>","snippet":"The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the Foreign Currency Matters Topic. Unless explicitly addressed within specific Subtopics, the following scope guidance appli…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:89a42b5c71ed899bf4e9d0097b454810a83f1e6249158bad11e4bae697052eee","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c61c7c22fee0784326092b19094b871c03e32a032831e721f4004294f46684b","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"block":null,"heading":"Entities","paragraphs":[{"citation":"830-10-15-2","para":"15-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The guidance in the Foreign Currency Matters Topic applies to all entities.</div></div>","snippet":"The guidance in the Foreign Currency Matters Topic applies to all entities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b823fef541e201200158b03554c0239f21c81c2b82a3e1b8b490631e33aef04c","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f765576915961b125f8e108eaaf2dd715fd1c3870ff0a57fb1784cb09e95b5f8","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"830-10-15-3","para":"15-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D08BC173-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in the Foreign Currency Matters Topic applies to all <a href=\"/glossary/f/#foreign-currency-transactions\" class=\"term\" title=\"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.\"><span>foreign currency transactions</span></a> in financial statements of a <a href=\"/glossary/r/#reporting-entity\" class=\"term\" title=\"An entity or group whose financial statements are being referred to. Those financial statements reflect any of the following: The financial statements of one or more foreign operations by combination, consolidation, or equity accounting Foreign currency transactions.\"><span>reporting entity</span></a> and </span></span><span class=\"sfragment\" id=\"sfr_D08BC2A3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">all <a href=\"/glossary/f/#foreign-currency-statements\" class=\"term\" title=\"Financial statements that employ as the unit of measure a functional currency that is not the reporting currency of the reporting entity.\"><span>foreign currency statements</span></a> that are incorporated in the financial statements of a reporting entity by consolidation, combination, or the equity method of accounting. </span></span></div></div>","snippet":"The guidance in the Foreign Currency Matters Topic applies to all foreign currency transactions in financial statements of a reporting entity and all foreign currency statements that are incorporated in the financial sta…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff9d8b71268412a733712021d0ff6938a6e535615b12f2a42aec58f0d7014cf7","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"citation":"830-10-15-4","para":"15-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D08BC39C-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For convenience, this Topic assumes that the reporting entity uses the U.S. dollar as its reporting currency. However, a currency other than the U.S. dollar may be the <a href=\"/glossary/r/#reporting-currency\" class=\"term\" title=\"The currency in which a reporting entity prepares its financial statements.\"><span>reporting currency</span></a> in financial statements that are prepared in conformity with U.S. generally accepted accounting principles (GAAP). For example, a <a href=\"/glossary/f/#foreign-entity\" class=\"term\" title=\"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.\"><span>foreign entity</span></a> may report in its <a href=\"/glossary/l/#local-currency\" class=\"term\" title=\"The currency of a particular country being referred to.\"><span>local currency</span></a> in conformity with U.S. GAAP. If so, the requirements of this Topic apply. </span></span></div></div>","snippet":"For convenience, this Topic assumes that the reporting entity uses the U.S. dollar as its reporting currency. However, a currency other than the U.S. dollar may be the reporting currency in financial statements that are …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03986070dd9d24f30023afdd92e32ddcc28a477055203c3602f05ef9307ced72","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:85e28d7ed3e9f96af7779a7cb2c9c15abb0192785f0c5067394294c5d87548bb","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"block":null,"heading":"Other Considerations","paragraphs":[{"citation":"830-10-15-5","para":"15-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D08BC499-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/f/#functional-currency\" class=\"term\" title=\"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.)\"><span>functional currency</span></a> approach applies equally to <a href=\"/glossary/t/#translation\" class=\"term\" title=\"See Foreign Currency Translation.\"><span>translation</span></a> of financial statements of foreign investees whether accounted for by the equity method or consolidated. </span></span><span class=\"sfragment\" id=\"sfr_D08BC571-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Therefore, the foreign currency statements and the foreign currency transactions of an investee that are accounted for by the equity method shall be translated in conformity with the requirements of this Topic in applying the equity method. </span></span></div></div>","snippet":"The functional currency approach applies equally to translation of financial statements of foreign investees whether accounted for by the equity method or consolidated. Therefore, the foreign currency statements and the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:97b21a14349c2e75f4acdbcb8f718eb65fadf0e1eb05c4a54d603e1676e6bc10","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"citation":"830-10-15-6","para":"15-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D08BC649-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The functional currency approach also applies to translation after a business combination </span></span><span class=\"sfragment\" id=\"sfr_D08BC717-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">or a combination accounted for by a <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.\"><span>not-for-profit entity</span></a>. </span></span>See paragraph <a href=\"/asc/830/30/#830-30-45-11\" class=\"xref\">830-30-45-11</a> for guidance.</div></div>","snippet":"The functional currency approach also applies to translation after a business combination or a combination accounted for by a not-for-profit entity. See paragraph 830-30-45-11 for guidance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9b7713c616135ba0b3f136fef4b0c1d8cb9b80c74c6a1503a54a8dec019f3dc","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"citation":"830-10-15-7","para":"15-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D08BC7F3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Translation of financial statements from one currency to another for purposes other than consolidation, combination, or the equity method is beyond the scope of this Topic. </span></span><span class=\"sfragment\" id=\"sfr_D08BC8B9-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For example, this Topic does not cover translation of the financial statements of a reporting entity from its reporting currency into another currency for the convenience of readers accustomed to that other currency. </span></span></div></div>","snippet":"Translation of financial statements from one currency to another for purposes other than consolidation, combination, or the equity method is beyond the scope of this Topic. For example, this Topic does not cover translat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9a38341d2dd5ec8708640a99f2457af3dff657cbac29bd9d099efc24b557e54","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c75f65889b011402d4d6bbd61e7ac26d3f2a325bfdec99335ead21bbfce2301e","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c1ec5b33c07afb8d63e8d9283b87c5348f8509236ea86acfd4844e6dd1d47dc","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c1ec5b33c07afb8d63e8d9283b87c5348f8509236ea86acfd4844e6dd1d47dc","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}