{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/830/20/#35-subsequent-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":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Transaction Gains and Losses","paragraphs":[{"citation":"830-20-35-1","para":"35-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D174F9C6-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A change in exchange rates between 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> and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. </span></span><span class=\"sfragment\" id=\"sfr_D174FB53-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">That increase or decrease in expected functional currency cash flows is a foreign currency <a href=\"/glossary/t/#transaction-gain-or-loss\" class=\"term\" title=\"Transaction gains or losses result from a change in exchange rates between the functional currency and the currency in which a foreign currency transaction is denominated. They represent an increase or decrease in both of the following: The actual functional currency cash flows realized upon settlement of foreign currency transactions The expected functional currency cash flows on unsettled foreign currency transactions.\"><span>transaction gain or loss</span></a> that generally shall be included in determining net income for the period in which 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> changes. </span></span></div></div>","snippet":"A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a6f4e9889f8afe18fa668de308cc91dc4b457c4e8a845d7085542a07a08f2d70","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D174FC9C-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At each balance sheet date, recorded balances that are denominated in a currency other than the functional currency of the recording entity shall be adjusted to reflect the current exchange rate. </span></span><span class=\"sfragment\" id=\"sfr_D174FD98-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At a subsequent balance sheet date, the current rate is that rate at which the related receivable or payable could be settled at that date. </span></span>Paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/830/20/#830-20-30-2\" class=\"xref\">830-20-30-2 through 30-3</a></div> provide more information about exchange rates.</div></div>","snippet":"At each balance sheet date, recorded balances that are denominated in a currency other than the functional currency of the recording entity shall be adjusted to reflect the current exchange rate. At a subsequent balance …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19502648dc9fa67c0507f1f827d808ef46f2a5a2f349e008ef906fbd10a54626","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-3","para":"35-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D174FE90-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Gains and losses on the following <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> shall not be included in determining net income but shall be reported in the same manner as <a href=\"/glossary/t/#translation-adjustments\" class=\"term\" title=\"Translation adjustments result from the process of translating financial statements from the entity's functional currency into the reporting currency.\"><span>translation adjustments</span></a>: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_D174FF79-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity, commencing as of the designation date </span></span>(see Subtopic <a altsource=\"GUID-DEEFA3E9-8D22-4A11-8FFE-A247CBEE4173.ditamap\" class=\"ditamap\">815-35</a>)</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_D17500A2-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Intra-entity foreign currency transactions that are of a long-term-investment nature (that is, settlement is not planned or anticipated in the foreseeable future), when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting entity's financial statements. </span></span></div></li></ol></div></div>","snippet":"Gains and losses on the following foreign currency transactions shall not be included in determining net income but shall be reported in the same manner as translation adjustments:\n(a) Foreign currency transactions that …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce7fd1018f5b3f38d36e57a6d9296e3e3966d9e5b5d04af5f14d09385dc874da","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-4","para":"35-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D175018E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Intra-entity transactions and balances for which settlement is not planned or anticipated in the foreseeable future are considered to be part of the net investment. This might include balances that take the form of an advance or a demand note payable provided that payment is not planned or anticipated in the foreseeable future. </span></span></div></div>","snippet":"Intra-entity transactions and balances for which settlement is not planned or anticipated in the foreseeable future are considered to be part of the net investment. This might include balances that take the form of an ad…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4bac6d20dd9aa2f47f0d15c735124db5dc8cc00fec0629e7a229e8dd068d1eba","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-5","para":"35-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D1750272-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The accounting for a gain or loss on a foreign currency transaction that is intended to hedge an identifiable foreign currency commitment (for example, an agreement to purchase or sell equipment) is addressed by paragraph <a href=\"/asc/815/20/#815-20-25-58\" class=\"xref\">815-20-25-58</a>. </span></span></div></div>","snippet":"The accounting for a gain or loss on a foreign currency transaction that is intended to hedge an identifiable foreign currency commitment (for example, an agreement to purchase or sell equipment) is addressed by paragrap…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab146c60b48e4aba7b722ceccb6edcc3c00aca3f1aa857985b921898f277ef61","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-6","para":"35-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D1750457-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraph <a href=\"/asc/320/10/#320-10-35-36\" class=\"xref\">320-10-35-36</a> requires that the entire change in the fair value of foreign-currency-denominated available-for-sale debt securities not related to the allowance for credit losses be reported in other comprehensive income. </span></span><span class=\"sfragment\" id=\"sfr_D1750529-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">See Subtopic <a altsource=\"GUID-211B0E0E-18E4-4F8C-88E5-6DB85C7C3515.ditamap\" class=\"ditamap\">326-30</a> for guidance on measuring credit losses for available-for-sale debt securities. </span></span></div></div>","snippet":"Paragraph 320-10-35-36 requires that the entire change in the fair value of foreign-currency-denominated available-for-sale debt securities not related to the allowance for credit losses be reported in other comprehensiv…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:88e52b1b5ce19dbc08688213c728a61424a47c15ad22c5c9b4bbeb815cd32d8a","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-7","para":"35-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2016-13/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2016-13</a>. </div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2016-13.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2115c52b65d1a9c5c695e24d62acae9ee6755c64ada0802111e5bd1da9fcdba5","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-7A","para":"35-7A","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D17506CF-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraph <a href=\"/asc/825/10/#825-10-45-5A\" class=\"xref\">825-10-45-5A</a> requires that for a financial liability for which the fair value option is elected, the change in the liability's fair value resulting from changes in instrument-specific credit risk shall be presented separately in other comprehensive income from other changes in the liability's fair value presented in current earnings. The component of the change in fair value of the liability resulting from changes in instrument-specific credit risk shall first be measured in the liability's currency of denomination, and then the cumulative amount shall be adjusted to reflect the current exchange rate in accordance with paragraph <a href=\"/asc/830/20/#830-20-35-2\" class=\"xref\">830-20-35-2</a>. The remeasurement of the component of the change in fair value of the liability resulting from the cumulative changes in instrument-specific credit risk shall be presented in accumulated other comprehensive income.</span></span></div></div>","snippet":"Paragraph 825-10-45-5A requires that for a financial liability for which the fair value option is elected, the change in the liability's fair value resulting from changes in instrument-specific credit risk shall be prese…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a56f584ea8742cbebed9949e94040c4641db80e99b4cb97aa4e6d99aa6d6ca7a","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-8","para":"35-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D175079E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A reporting entity's financial statements shall not be adjusted for a rate change that occurs after the date of the reporting entity's financial statements. </span></span></div></div>","snippet":"A reporting entity's financial statements shall not be adjusted for a rate change that occurs after the date of the reporting entity's financial statements.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7b073caa80faa929ddfcb567a86fbb0a6b7fd2a1b3fe8317236161ba4ed39b19","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5934bc5df54a532c8806eb93df8f5e3c42586aef7e54b6c0c6b7ab1fe96a2458","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ee0cb6828813e7cea5d14b39f0d97e4f3938576ffd81d66ae1ff3b9afb36b5b","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ee0cb6828813e7cea5d14b39f0d97e4f3938576ffd81d66ae1ff3b9afb36b5b","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}}