{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/830/20/#25-recognition","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":"830-20","subtopic_title":"Foreign Currency Transactions","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-20-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_D14DAAB7-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At the date a <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 transaction</span></a> is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be recorded in 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> of the recording entity. </span></span> </div> </div>","snippet":"At the date a foreign currency transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be recorded in the functional currency of the recording entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:51ad8d940f70e4cdc1f852f8ed35de9532b0b49f1dc3f2382a75203a9ce6d0aa","downloaded_from":"2026-09-10T01:46:45.901Z","last_downloaded_at":"2026-09-10T01:46:45.901Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481617","source_sha256":"fcfea8068d5435d72cb1e3039e5d56c5286300a32f2a31f37e5f7ba6d997e500"}},{"citation":"830-20-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">Paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/830/10/#830-10-55-3\" class=\"xref\">830-10-55-3 through 55-7</a></div> provide guidance on the determination of a reporting entity's functional currency. <span class=\"sfragment\" id=\"sfr_D14DABF3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraph <a href=\"/asc/830/10/#830-10-45-17\" class=\"xref\">830-10-45-17</a> states that if an entity's books of record are not maintained in its functional currency, remeasurement into the functional currency is required </span></span><span class=\"sfragment\" id=\"sfr_D14DAD5E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">before <a href=\"/glossary/t/#translation\" class=\"term\" title=\"See Foreign Currency Translation.\"><span>translation</span></a> into the reporting currency. </span></span>That paragraph provides further guidance on remeasurement of books and records.</div> </div>","snippet":"Paragraphs 830-10-55-3 through 55-7 provide guidance on the determination of a reporting entity's functional currency. Paragraph 830-10-45-17 states that if an entity's books of record are not maintained in its functiona…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:10bfc5419edcb141fb0ff7d777211138c6ce62bd8fad7b2bbb2db2904ca23cff","downloaded_from":"2026-09-10T01:46:45.901Z","last_downloaded_at":"2026-09-10T01:46:45.901Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481617","source_sha256":"fcfea8068d5435d72cb1e3039e5d56c5286300a32f2a31f37e5f7ba6d997e500"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70ce5d9d37ef0083903c9de683fcac02b45070ce4899c971d32a8edad38f17a1","downloaded_from":"2026-09-10T01:46:45.901Z","last_downloaded_at":"2026-09-10T01:46:45.901Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481617","source_sha256":"fcfea8068d5435d72cb1e3039e5d56c5286300a32f2a31f37e5f7ba6d997e500"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2a1bd862060aff1645c28af1aaaab25d4e53820330a8d8fe26105affe9f01d0b","downloaded_from":"2026-09-10T01:46:45.901Z","last_downloaded_at":"2026-09-10T01:46:45.901Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481617","source_sha256":"fcfea8068d5435d72cb1e3039e5d56c5286300a32f2a31f37e5f7ba6d997e500"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2a1bd862060aff1645c28af1aaaab25d4e53820330a8d8fe26105affe9f01d0b","downloaded_from":"2026-09-10T01:46:45.901Z","last_downloaded_at":"2026-09-10T01:46:45.901Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481617","source_sha256":"fcfea8068d5435d72cb1e3039e5d56c5286300a32f2a31f37e5f7ba6d997e500"}}