# ASC 830-10-15: Foreign Currency Matters — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/830/10/#15-scope-and-scope-exceptions) 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): 2026-09-10T01:46:18.142Z to 2026-09-10T01:46:18.142Z Record version: sha256:3c1ec5b33c07afb8d63e8d9283b87c5348f8509236ea86acfd4844e6dd1d47dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/830/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [830-10-15-1](https://asc.understandingaccounting.org/asc/830/10/#830-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:18.142Z to 2026-09-10T01:46:18.142Z Record version: sha256:89a42b5c71ed899bf4e9d0097b454810a83f1e6249158bad11e4bae697052eee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of 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. Unless explicitly addressed within specific Subtopics, the following scope guidance applies to all Subtopics of the Foreign Currency Matters Topic. #### Entities ##### [830-10-15-2](https://asc.understandingaccounting.org/asc/830/10/#830-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:18.142Z to 2026-09-10T01:46:18.142Z Record version: sha256:b823fef541e201200158b03554c0239f21c81c2b82a3e1b8b490631e33aef04c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Foreign Currency Matters Topic applies to all entities. #### Transactions ##### [830-10-15-3](https://asc.understandingaccounting.org/asc/830/10/#830-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:18.142Z to 2026-09-10T01:46:18.142Z Record version: sha256:ff9d8b71268412a733712021d0ff6938a6e535615b12f2a42aec58f0d7014cf7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Foreign Currency Matters Topic applies to all [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.") in financial statements of a [reporting entity](https://asc.understandingaccounting.org/glossary/r/#reporting-entity "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.") and all [foreign currency statements](https://asc.understandingaccounting.org/glossary/f/#foreign-currency-statements "Financial statements that employ as the unit of measure a functional currency that is not the reporting currency of the reporting entity.") that are incorporated in the financial statements of a reporting entity by consolidation, combination, or the equity method of accounting. ##### [830-10-15-4](https://asc.understandingaccounting.org/asc/830/10/#830-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:18.142Z to 2026-09-10T01:46:18.142Z Record version: sha256:03986070dd9d24f30023afdd92e32ddcc28a477055203c3602f05ef9307ced72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/r/#reporting-currency "The currency in which a reporting entity prepares its financial statements.") in financial statements that are prepared in conformity with U.S. generally accepted accounting principles (GAAP). For example, 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.") may report in its [local currency](https://asc.understandingaccounting.org/glossary/l/#local-currency "The currency of a particular country being referred to.") in conformity with U.S. GAAP. If so, the requirements of this Topic apply. #### Other Considerations ##### [830-10-15-5](https://asc.understandingaccounting.org/asc/830/10/#830-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:18.142Z to 2026-09-10T01:46:18.142Z Record version: sha256:97b21a14349c2e75f4acdbcb8f718eb65fadf0e1eb05c4a54d603e1676e6bc10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [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.)") approach applies equally to [translation](https://asc.understandingaccounting.org/glossary/t/#translation "See Foreign Currency Translation.") of financial statements of foreign investees whether accounted for by the equity method or consolidated. 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. ##### [830-10-15-6](https://asc.understandingaccounting.org/asc/830/10/#830-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:18.142Z to 2026-09-10T01:46:18.142Z Record version: sha256:a9b7713c616135ba0b3f136fef4b0c1d8cb9b80c74c6a1503a54a8dec019f3dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The functional currency approach also applies to translation after a business combination or a combination accounted for by a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "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."). See paragraph [830-30-45-11](https://asc.understandingaccounting.org/asc/830/30/#830-30-45-11) for guidance. ##### [830-10-15-7](https://asc.understandingaccounting.org/asc/830/10/#830-10-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:18.142Z to 2026-09-10T01:46:18.142Z Record version: sha256:d9a38341d2dd5ec8708640a99f2457af3dff657cbac29bd9d099efc24b557e54 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 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.