# ASC 830-20-30: Foreign Currency Matters — Foreign Currency Transactions — 30 Initial Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/830/20/#30-initial-measurement) 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): 2026-09-10T01:46:49.634Z to 2026-09-10T01:46:49.634Z Record version: sha256:1a15cccdbc620bffa63332b96c49857444e672a7ae4449cbe56bd7130608f7d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/830/20/#30-initial-measurement) SEC content: no ##### [830-20-30-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:49.634Z to 2026-09-10T01:46:49.634Z Record version: sha256:9d80aebcd3513f6652e0d9c903067c5db27e50c673239dfdbec611d5779845a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the date a [foreign currency transaction](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.") is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be measured initially in 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.)") of the recording entity by use of the [exchange rate](https://asc.understandingaccounting.org/glossary/e/#exchange-rate "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.") in effect at that date. #### Exchange Rates ##### [830-20-30-2](https://asc.understandingaccounting.org/asc/830/20/#830-20-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:49.634Z to 2026-09-10T01:46:49.634Z Record version: sha256:f4c9ad1d3e6c4ebaebbc302976f80caa1414d02f1ac022892b141d99ac12f476 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If exchangeability between two currencies is temporarily lacking at the [transaction date](https://asc.understandingaccounting.org/glossary/t/#transaction-date "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).") or balance sheet date, the first subsequent rate at which exchanges could be made shall be used for purposes of this Subtopic. 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 [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.") shall be carefully considered. ##### [830-20-30-3](https://asc.understandingaccounting.org/asc/830/20/#830-20-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:49.634Z to 2026-09-10T01:46:49.634Z Record version: sha256:6843496e0bb138dc31709164e9a9c5747da213564713f3ec33b46d42c677f015 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [830-20-30-4](https://asc.understandingaccounting.org/asc/830/20/#830-20-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:49.634Z to 2026-09-10T01:46:49.634Z Record version: sha256:7a54704a894b574f7de22cc4b277a3e8637c1ba07612e18841557a9c66b7540e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [830-10-55-10 through 55-11](https://asc.understandingaccounting.org/asc/830/10/#830-10-55-10) discuss the use of averages or other methods of approximation.