{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/830/20/#55-implementation-guidance-and-illustrations","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":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"830-20-55-1","para":"55-1","html":"
This guidance applies to a transaction with all of the following characteristics:
  1. a
    In a secondary-market transaction, a U.S. entity purchases—at less than the face amount—some dollar-denominated debt due from a foreign government or an entity that operates in that foreign country.
  2. b
    Simultaneously, the U.S. entity exchanges the debt with the foreign country's government in a transaction denominated in the foreign currency.
  3. c
    The exchange rate used to obtain the foreign currency is the official exchange rate (less a transaction fee).
  4. d
    The U.S. entity is required by the foreign government to invest the foreign currency proceeds in the entity's subsidiary operating in that foreign country. (The intent of the foreign government may be to induce the U.S. entity to make an investment in long-lived assets in the foreign country.)
","snippet":"This guidance applies to a transaction with all of the following characteristics:\n(a) In a secondary-market transaction, a U.S. entity purchases—at less than the face amount—some dollar-denominated debt due from a foreig…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db5657054393a91b8681f9e5453221fdf36d3729896748ee056d29accae8990c","downloaded_from":"2026-09-10T01:47:04.710Z","last_downloaded_at":"2026-09-10T01:47:04.710Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481901","source_sha256":"0985c1d51be10f201a7ac30698e5faaaa69d1f9dbfaac955a9e535b68b42cb8a"}},{"citation":"830-20-55-2","para":"55-2","html":"
The amount by which the local currency proceeds translated at the official exchange rate exceed the purchase cost of the loan (referred to as the excess) shall be used to reduce the basis of the long-lived assets acquired or constructed to comply with the arrangement. If the arrangement does not specifically require the acquisition or construction of long-lived fixed assets, or if the excess exceeds the cost of the assets, the excess shall be used to reduce the carrying amount of existing long-lived assets other than goodwill. The excess shall be applied first to reduce the basis of the fixed asset with the longest remaining life. If that asset is reduced to zero, the remaining excess shall be applied to reduce the basis of the fixed asset with the next longest remaining life. If the cost of all fixed assets is reduced to zero, the remaining excess shall be reported as a bargain purchase as required by Subtopic 805-30.
","snippet":"The amount by which the local currency proceeds translated at the official exchange rate exceed the purchase cost of the loan (referred to as the excess) shall be used to reduce the basis of the long-lived assets acquire…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56dadeb91ce761db787005b34388b9f15ea5e2753e7534a463a7b5cffc40d2e2","downloaded_from":"2026-09-10T01:47:04.710Z","last_downloaded_at":"2026-09-10T01:47:04.710Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481901","source_sha256":"0985c1d51be10f201a7ac30698e5faaaa69d1f9dbfaac955a9e535b68b42cb8a"}},{"citation":"830-20-55-3","para":"55-3","html":"
This guidance is applicable also to a debt-for-equity swap with both of the following characteristics (resulting in the excess being reported as a bargain purchase as required by Subtopic 805-30):
  1. a
    The foreign branch has no significant assets or liabilities other than local currency debt and has an accumulated deficit.
  2. b
    The proceeds from the debt-for-equity swap are used to extinguish the debt.
","snippet":"This guidance is applicable also to a debt-for-equity swap with both of the following characteristics (resulting in the excess being reported as a bargain purchase as required by Subtopic 805-30):\n(a) The foreign branch …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4d53f2ff793b56a124c2a0c1ba304305f7d3d56da384a786ffa5fe4f428cd9ae","downloaded_from":"2026-09-10T01:47:04.710Z","last_downloaded_at":"2026-09-10T01:47:04.710Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481901","source_sha256":"0985c1d51be10f201a7ac30698e5faaaa69d1f9dbfaac955a9e535b68b42cb8a"}},{"citation":"830-20-55-4","para":"55-4","html":"
Paragraph 830-10-55-10 provides guidance on the use of averages or other methods of approximation in applying this Subtopic.
","snippet":"Paragraph 830-10-55-10 provides guidance on the use of averages or other methods of approximation in applying this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93b87cea610071c1fa822c41a4362e9adc51e3b7007ecd69825b8f77929ea4da","downloaded_from":"2026-09-10T01:47:04.710Z","last_downloaded_at":"2026-09-10T01:47:04.710Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481901","source_sha256":"0985c1d51be10f201a7ac30698e5faaaa69d1f9dbfaac955a9e535b68b42cb8a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e394b19886c4def0eb64d5d723dadcfbbace99c4309b4f84c54862ff21134a69","downloaded_from":"2026-09-10T01:47:04.710Z","last_downloaded_at":"2026-09-10T01:47:04.710Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481901","source_sha256":"0985c1d51be10f201a7ac30698e5faaaa69d1f9dbfaac955a9e535b68b42cb8a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0f336680e7fd8e5076047531554ecb836ecc0827181625f1643555e00c62a947","downloaded_from":"2026-09-10T01:47:04.710Z","last_downloaded_at":"2026-09-10T01:47:04.710Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481901","source_sha256":"0985c1d51be10f201a7ac30698e5faaaa69d1f9dbfaac955a9e535b68b42cb8a"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0f336680e7fd8e5076047531554ecb836ecc0827181625f1643555e00c62a947","downloaded_from":"2026-09-10T01:47:04.710Z","last_downloaded_at":"2026-09-10T01:47:04.710Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481901","source_sha256":"0985c1d51be10f201a7ac30698e5faaaa69d1f9dbfaac955a9e535b68b42cb8a"}}