{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/830/20/#30-initial-measurement","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":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-20-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_D156CB50-6E92-1014-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 measured initially 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 by use of the <a href=\"/glossary/e/#exchange-rate\" class=\"term\" title=\"The ratio between a unit of one currency and the amount of another currency for which that unit can be exchanged at a particular time.\"><span>exchange rate</span></a> in effect at that date. </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 measured initially in the functional currency of the recording entity…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d80aebcd3513f6652e0d9c903067c5db27e50c673239dfdbec611d5779845a6","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6105a8ffe9992b83566113b7570a10b57cd59732e00b30abfbaede151efda7c1","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}},{"block":null,"heading":"Exchange Rates","paragraphs":[{"citation":"830-20-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_D156CD38-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If exchangeability between two currencies is temporarily lacking at the <a href=\"/glossary/t/#transaction-date\" class=\"term\" title=\"The date at which a transaction (for example, a sale or purchase of merchandise or services) is recorded in accounting records in conformity with generally accepted accounting principles (GAAP). A long-term commitment may have more than one transaction date (for example, the due date of each progress payment under a construction contract is an anticipated transaction date).\"><span>transaction date</span></a> or balance sheet date, the first subsequent rate at which exchanges could be made shall be used for purposes of this Subtopic. </span></span> <span class=\"sfragment\" id=\"sfr_D156CF04-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the lack of exchangeability is other than temporary, the propriety of consolidating, combining, or accounting for the foreign operation by the equity method in the financial statements of the <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> shall be carefully considered. </span></span> </div> </div>","snippet":"If exchangeability between two currencies is temporarily lacking at the transaction date or balance sheet date, the first subsequent rate at which exchanges could be made shall be used for purposes of this Subtopic. If t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4c9ad1d3e6c4ebaebbc302976f80caa1414d02f1ac022892b141d99ac12f476","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}},{"citation":"830-20-30-3","para":"30-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_D156D089-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For a foreign currency transaction, </span></span> <span class=\"sfragment\" id=\"sfr_D156D1F6-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">the applicable rate at which a particular transaction could be settled at the transaction date shall be used to translate the transaction. </span></span> </div> </div>","snippet":"For a foreign currency transaction, the applicable rate at which a particular transaction could be settled at the transaction date shall be used to translate the transaction.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6843496e0bb138dc31709164e9a9c5747da213564713f3ec33b46d42c677f015","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}},{"citation":"830-20-30-4","para":"30-4","html":"<div class=\"asc-body\"><div class=\"norm-text\">Paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/830/10/#830-10-55-10\" class=\"xref\">830-10-55-10 through 55-11</a></div> discuss the use of averages or other methods of approximation.</div> </div>","snippet":"Paragraphs 830-10-55-10 through 55-11 discuss the use of averages or other methods of approximation.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a54704a894b574f7de22cc4b277a3e8637c1ba07612e18841557a9c66b7540e","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8c7accd63ba735671c31a4a38efd42d44ed61442abf100fa1e728d4bdb60aa82","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a15cccdbc620bffa63332b96c49857444e672a7ae4449cbe56bd7130608f7d8","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a15cccdbc620bffa63332b96c49857444e672a7ae4449cbe56bd7130608f7d8","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}}