# ASC 830-20-35: Foreign Currency Matters — Foreign Currency Transactions — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/830/20/#35-subsequent-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): 2026-09-10T01:46:52.717Z to 2026-09-10T01:46:52.717Z Record version: sha256:5ee0cb6828813e7cea5d14b39f0d97e4f3938576ffd81d66ae1ff3b9afb36b5b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/830/20/#35-subsequent-measurement) SEC content: no #### Transaction Gains and Losses ##### [830-20-35-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:52.717Z to 2026-09-10T01:46:52.717Z Record version: sha256:a6f4e9889f8afe18fa668de308cc91dc4b457c4e8a845d7085542a07a08f2d70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A change in exchange rates between 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.)") 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. That increase or decrease in expected functional currency cash flows is a foreign currency [transaction gain or loss](https://asc.understandingaccounting.org/glossary/t/#transaction-gain-or-loss "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.") that generally shall be included in determining net income for the period in which 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.") changes. ##### [830-20-35-2](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:52.717Z to 2026-09-10T01:46:52.717Z Record version: sha256:19502648dc9fa67c0507f1f827d808ef46f2a5a2f349e008ef906fbd10a54626 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 sheet date, the current rate is that rate at which the related receivable or payable could be settled at that date. Paragraphs [830-20-30-2 through 30-3](https://asc.understandingaccounting.org/asc/830/20/#830-20-30-2) provide more information about exchange rates. ##### [830-20-35-3](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:52.717Z to 2026-09-10T01:46:52.717Z Record version: sha256:ce7fd1018f5b3f38d36e57a6d9296e3e3966d9e5b5d04af5f14d09385dc874da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gains and losses on the following [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.") shall not be included in determining net income but shall be reported in the same manner as [translation adjustments](https://asc.understandingaccounting.org/glossary/t/#translation-adjustments "Translation adjustments result from the process of translating financial statements from the entity's functional currency into the reporting currency."): 1. a 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 (see Subtopic 815-35) 2. b 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. ##### [830-20-35-4](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:52.717Z to 2026-09-10T01:46:52.717Z Record version: sha256:4bac6d20dd9aa2f47f0d15c735124db5dc8cc00fec0629e7a229e8dd068d1eba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [830-20-35-5](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:52.717Z to 2026-09-10T01:46:52.717Z Record version: sha256:ab146c60b48e4aba7b722ceccb6edcc3c00aca3f1aa857985b921898f277ef61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 [815-20-25-58](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-58). ##### [830-20-35-6](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:52.717Z to 2026-09-10T01:46:52.717Z Record version: sha256:88e52b1b5ce19dbc08688213c728a61424a47c15ad22c5c9b4bbeb815cd32d8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [320-10-35-36](https://asc.understandingaccounting.org/asc/320/10/#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 comprehensive income. See Subtopic 326-30 for guidance on measuring credit losses for available-for-sale debt securities. ##### [830-20-35-7](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:52.717Z to 2026-09-10T01:46:52.717Z Record version: sha256:2115c52b65d1a9c5c695e24d62acae9ee6755c64ada0802111e5bd1da9fcdba5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [830-20-35-7A](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-7A) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:52.717Z to 2026-09-10T01:46:52.717Z Record version: sha256:a56f584ea8742cbebed9949e94040c4641db80e99b4cb97aa4e6d99aa6d6ca7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [825-10-45-5A](https://asc.understandingaccounting.org/asc/825/10/#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 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 [830-20-35-2](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-2). 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. ##### [830-20-35-8](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:52.717Z to 2026-09-10T01:46:52.717Z Record version: sha256:7b073caa80faa929ddfcb567a86fbb0a6b7fd2a1b3fe8317236161ba4ed39b19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.