# ASC 830-20: Foreign Currency Matters — Foreign Currency Transactions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/830/20/) 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): 2026-09-10T01:46:33.561Z to 2026-09-10T01:47:07.110Z Record version: sha256:c4ef6da561cc84b28116e53932db437ba3b9c405796c8794ad3fec18b48a02b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20: Foreign Currency Matters — Foreign Currency Transactions ### Machine-generated study aids ```json { "summary": "ASC 830-20 governs how an entity accounts for transactions denominated in a currency other than its functional currency (foreign currency transactions). At the transaction date, each asset, liability, revenue, expense, gain, or loss is recorded and measured in the functional currency using the exchange rate in effect at that date (830-20-25-1; 830-20-30-1); thereafter, balances denominated in a foreign currency are remeasured at each balance sheet date at the current rate (830-20-35-2), with the resulting transaction gains and losses generally included in net income. Narrow exceptions—economic hedges of a net investment in a foreign entity and long-term-investment-nature intra-entity balances—are reported like translation adjustments in other comprehensive income (830-20-35-3).", "key_points": [ "A foreign currency transaction is one denominated in a currency other than the recording entity's functional currency; for a non-dollar functional currency entity, even a dollar-denominated transaction is a foreign currency transaction (830-20-05-2).", "Initial measurement uses the exchange rate in effect at the transaction date at which the particular transaction could be settled (830-20-30-1; 830-20-30-3); if exchangeability is temporarily lacking, use the first subsequent rate at which exchanges could be made (830-20-30-2).", "At each balance sheet date, foreign-currency-denominated recorded balances are adjusted to the current rate, and the resulting transaction gain or loss is generally included in net income for the period in which the rate changes (830-20-35-1; 830-20-35-2).", "Exceptions reported in the same manner as translation adjustments (OCI): transactions designated as, and effective as, economic hedges of a net investment in a foreign entity from the designation date, and intra-entity transactions of a long-term-investment nature where settlement is not planned or anticipated in the foreseeable future (830-20-35-3; 830-20-35-4).", "Gain or loss realized on settlement (measured from the transaction date or most recent intervening balance sheet date, whichever is later) is included in net income, subject to the 830-20-35-3 exceptions (830-20-40-1).", "Financial statements are not adjusted for rate changes occurring after the balance sheet date, but disclosure of such a rate change and its effect on unsettled balances may be necessary if significant (830-20-35-8; 830-20-50-2).", "The aggregate transaction gain or loss included in net income must be presented in the financial statements or disclosed in the notes (830-20-45-1; 830-20-50-1); derivative instruments are scoped out and follow Topic 815 (830-20-15-2)." ], "categories": [ "Foreign currency", "Subsequent measurement", "Initial measurement", "Disclosure" ], "audience_level": "intermediate", "student_note": "Exam questions hinge on the split between P&L and OCI: ordinary receivables/payables denominated in a foreign currency are remeasured through net income, while only net investment hedges and long-term-investment intra-entity balances go to OCI. A common misunderstanding is confusing remeasurement of transactions (830-20, gains/losses to income) with translation of a foreign entity's financial statements (830-30, adjustments to CTA in OCI).", "related_topics": [ "830-10", "830-30", "830-740", "815-35", "815-20", "740-10" ], "key_concepts": [ "foreign currency transaction", "functional currency", "remeasurement", "transaction gain or loss", "current exchange rate", "net investment hedge", "intra-entity long-term-investment balances", "translation adjustment" ] } ``` Source downloaded (UTC): 2026-09-10T01:46:33.561Z to 2026-09-10T01:46:33.561Z Record version: sha256:19030419e8e0bfb434b5960b31d13d093d90ffde320d1b13b7f144402f54c94e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/830/20/#00-status) SEC content: no ##### [830-20-00-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:33.561Z to 2026-09-10T01:46:33.561Z Record version: sha256:8dbec581e3b3857b3e307dc545c58de28ccc5f49e924dd9ae5247671005e1e7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
830-20-05-3AmendedAccounting Standards Update No. 2020-1010/29/2020
830-20-35-6AmendedAccounting Standards Update No. 2016-1306/16/2016
830-20-35-7SupersededAccounting Standards Update No. 2016-1306/16/2016
830-20-35-7AAddedAccounting Standards Update No. 2018-0302/28/2018
830-20-45-1AmendedMaintenance Update 2020-18 (PDF)11/25/2020
830-20-45-1AmendedAccounting Standards Update No. 2020-1010/29/2020
830-20-45-4SupersededAccounting Standards Update No. 2015-0101/09/2015
830-20-45-5AmendedAccounting Standards Update No. 2015-0101/09/2015
830-20-50-1AmendedAccounting Standards Update No. 2024-0311/04/2024
830-20-50-1AmendedAccounting Standards Update No. 2020-1010/29/2020
Source downloaded (UTC): 2026-09-10T01:46:36.938Z to 2026-09-10T01:46:36.938Z Record version: sha256:398f64d9f74dd99d1490b68e0846f01492a2950acb98760a7fe10319c30858fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/830/20/#05-overview-and-background) SEC content: no ##### [830-20-05-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:36.938Z to 2026-09-10T01:46:36.938Z Record version: sha256:ee787f8e74b8e08b83695fee84b465a698b4a3bf2e8460ede9877a4c4962ac7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic establishes standards of financial accounting and reporting for [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.") in financial statements of a [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."). ##### [830-20-05-2](https://asc.understandingaccounting.org/asc/830/20/#830-20-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:36.938Z to 2026-09-10T01:46:36.938Z Record version: sha256:9f2440a6a113545004454616f576844595c55c55a2223386e15ef125e99981af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Foreign currency transactions may produce receivables or payables that are fixed in terms of the amount of [foreign currency](https://asc.understandingaccounting.org/glossary/f/#foreign-currency "A currency other than the functional currency of the entity being referred to (for example, the dollar could be a foreign currency for a foreign entity). Composites of currencies, such as the Special Drawing Rights, used to set prices or denominate amounts of loans, and so forth, have the characteristics of foreign currency.") that will be received or paid. Examples include a sale denominated in Swiss francs, a Swiss franc loan, and the holding of Swiss francs by an entity whose [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.)") is the dollar. Likewise, a Swiss franc denominated transaction by a German entity or other entity whose functional currency is not the Swiss franc is a foreign currency transaction. For any entity whose functional currency is not the dollar, a dollar-denominated transaction is also a foreign currency transaction. ##### [830-20-05-3](https://asc.understandingaccounting.org/asc/830/20/#830-20-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:36.938Z to 2026-09-10T01:46:36.938Z Record version: sha256:3d99792b80cee1e6b19bc2a56daf0f2d7e000c3ce5454de3441b4064b4a6a63d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If taxable exchange gains or tax-deductible exchange losses resulting from an entity's foreign currency transactions are included in net income in a different period for financial statement purposes from that for tax purposes, a deferred tax liability or deferred tax asset should be recognized as required under Topic 740. Source downloaded (UTC): 2026-09-10T01:46:40.791Z to 2026-09-10T01:46:40.791Z Record version: sha256:02021522374bb26d9cd5c2f49f931292294df5d312a1686f3a1e8f4a5794094c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/830/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [830-20-15-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:40.791Z to 2026-09-10T01:46:40.791Z Record version: sha256:102164f1e58ce344e3a24d60da6762cead578de8ff2725e73505684b5b943a58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 830-10-15, with specific transaction exceptions noted below. #### Transactions ##### [830-20-15-2](https://asc.understandingaccounting.org/asc/830/20/#830-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:40.791Z to 2026-09-10T01:46:40.791Z Record version: sha256:93c9c1601e524078c132882243e0d670a6bf3ffff936b68fcf85c746e42c82b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all [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.") with the exception of the following: 1. a Derivative instruments, for guidance see Topic 815. Source downloaded (UTC): 2026-09-10T01:46:45.901Z to 2026-09-10T01:46:45.901Z Record version: sha256:2a1bd862060aff1645c28af1aaaab25d4e53820330a8d8fe26105affe9f01d0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/830/20/#25-recognition) SEC content: no ##### [830-20-25-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:45.901Z to 2026-09-10T01:46:45.901Z Record version: sha256:51ad8d940f70e4cdc1f852f8ed35de9532b0b49f1dc3f2382a75203a9ce6d0aa 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 recorded 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. ##### [830-20-25-2](https://asc.understandingaccounting.org/asc/830/20/#830-20-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:45.901Z to 2026-09-10T01:46:45.901Z Record version: sha256:10bfc5419edcb141fb0ff7d777211138c6ce62bd8fad7b2bbb2db2904ca23cff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [830-10-55-3 through 55-7](https://asc.understandingaccounting.org/asc/830/10/#830-10-55-3) provide guidance on the determination of a reporting entity's functional currency. Paragraph [830-10-45-17](https://asc.understandingaccounting.org/asc/830/10/#830-10-45-17) states that if an entity's books of record are not maintained in its functional currency, remeasurement into the functional currency is required before [translation](https://asc.understandingaccounting.org/glossary/t/#translation "See Foreign Currency Translation.") into the reporting currency. That paragraph provides further guidance on remeasurement of books and records. 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. 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. Source downloaded (UTC): 2026-09-10T01:46:56.233Z to 2026-09-10T01:46:56.233Z Record version: sha256:95a38f55225a9440fc1da9190f0663a77eba2c99a9f6b41ee9453a1e04226ea2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/830/20/#40-derecognition) SEC content: no ##### [830-20-40-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:56.233Z to 2026-09-10T01:46:56.233Z Record version: sha256:146ef155df4257618bfcfa46050f7ac428fb65700a7bfc463cf73337c5d4fd56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [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.") (measured from 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 the most recent intervening balance sheet date, whichever is later) realized upon settlement of 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.") generally shall be included in determining net income for the period in which the transaction is settled. The exceptions to this requirement for inclusion in net income of transaction gains and losses are set forth in paragraph [830-20-35-3](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-3) and pertain to certain intra-entity transactions and to transactions that are designated as, and effective as, economic hedges of net investments. Source downloaded (UTC): 2026-09-10T01:46:58.403Z to 2026-09-10T01:46:58.403Z Record version: sha256:ec255cc6c84b46c21a68062997d1021c0ccf397365930aa54d841dd3b385fb49 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/830/20/#45-other-presentation-matters) SEC content: no #### Income Statement Presentation ##### [830-20-45-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:58.403Z to 2026-09-10T01:46:58.403Z Record version: sha256:dd7df1fe7ca1443c824ecded86905b91d6affdc809c06e317df4d81dac040d96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The aggregate [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.") included in determining net income for the period shall be presented in the financial statements or disclosed in the notes thereto (see paragraph [830-20-50-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-50-1)). ##### [830-20-45-2](https://asc.understandingaccounting.org/asc/830/20/#830-20-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:58.403Z to 2026-09-10T01:46:58.403Z Record version: sha256:6b6ed1ee7a03495afe38e9b50a879be02725b34207961fb70bd53d738985c41e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain entities, primarily banks, are dealers in foreign exchange. Although certain gains or losses from dealer transactions may fit the definition of transaction gains or losses in this Subtopic, they may be disclosed as dealer gains or losses rather than as transaction gains or losses. ##### [830-20-45-3](https://asc.understandingaccounting.org/asc/830/20/#830-20-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:58.403Z to 2026-09-10T01:46:58.403Z Record version: sha256:d8ca3b2170949de54b544f11b1c618c9de36c551b5058b9506d1c802178de908 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When the [reporting currency](https://asc.understandingaccounting.org/glossary/r/#reporting-currency "The currency in which a reporting entity prepares its financial statements.") (not the [foreign currency](https://asc.understandingaccounting.org/glossary/f/#foreign-currency "A currency other than the functional currency of the entity being referred to (for example, the dollar could be a foreign currency for a foreign entity). Composites of currencies, such as the Special Drawing Rights, used to set prices or denominate amounts of loans, and so forth, have the characteristics of foreign currency.")) is the functional currency, remeasurement of a reporting entity's deferred foreign tax liability or asset after a change in 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.") will result in a transaction gain or loss that is recognized currently in determining net income. The preceding paragraph requires disclosure of the aggregate transaction gain or loss included in determining net income but does not specify how to display that transaction gain or loss or its components for financial reporting. See paragraph [830-740-45-1](https://asc.understandingaccounting.org/asc/740/830/#740-830-45-1) for further guidance. ##### [830-20-45-4](https://asc.understandingaccounting.org/asc/830/20/#830-20-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:58.403Z to 2026-09-10T01:46:58.403Z Record version: sha256:c313b7c019021be23e6bc24c25cc43abe456f3b0cad116f5368c9f77d763c0fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-01](https://asc.understandingaccounting.org/updates/asu-2015-01/). #### Reporting Other Comprehensive Income ##### [830-20-45-5](https://asc.understandingaccounting.org/asc/830/20/#830-20-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:58.403Z to 2026-09-10T01:46:58.403Z Record version: sha256:de44941606d27856b23fddc8e944ed975a511bd5dd86f7707e62f8077459fa9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subtopic 740-10 requires income tax expense to be allocated among income from continuing operations, discontinued operations, adjustments of prior periods (or of the opening balance of retained earnings), and direct entries to other equity accounts. Some transaction gains and losses are reported in other comprehensive income. Any income taxes related to those transaction gains and losses shall be allocated to other comprehensive income. Source downloaded (UTC): 2026-09-10T01:47:02.159Z to 2026-09-10T01:47:02.159Z Record version: sha256:d9893f4e13ec796ce631300dd6afd84344c014a867e5e8b2daac8b24e665378d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/830/20/#50-disclosure) SEC content: no #### Aggregate Transaction Gain or Loss ##### [830-20-50-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-50-1) Pending content: yes Source downloaded (UTC): 2026-09-10T01:47:02.159Z to 2026-09-10T01:47:02.159Z Record version: sha256:4ca69ca97785361ae0637bbd2d3e9697d768cabf48d6106c3e79dc57e5e5947b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If not presented in the financial statements as discussed in paragraph [830-20-45-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-45-1), the aggregate [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.") included in determining net income for the period shall be disclosed in notes to financial statements. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)If not presented in the financial statements as discussed in paragraph [830-20-45-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-45-1), the aggregate [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.") included in determining net income for the period shall be disclosed in notes to financial statements. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. #### Subsequent Rate Changes ##### [830-20-50-2](https://asc.understandingaccounting.org/asc/830/20/#830-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:47:02.159Z to 2026-09-10T01:47:02.159Z Record version: sha256:d06db085d8ab49f386abe2ea745cbda2c0e0202be5131f8693b43f2f643c7dc0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of a rate change that occurs after the date of the reporting entity's financial statements and its effects on unsettled balances pertaining to [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."), if significant, may be necessary. If disclosed, the disclosure shall include consideration of changes in unsettled transactions from the date of the financial statements to the date the rate changed. In some cases it may not be practicable to determine these changes; if so, that fact shall be stated. #### Effects of Rate Changes on Results of Operations ##### [830-20-50-3](https://asc.understandingaccounting.org/asc/830/20/#830-20-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:47:02.159Z to 2026-09-10T01:47:02.159Z Record version: sha256:3c4c81385c336e2312cf6d299146fa2fe6526ddba61fa0a26802771541b0643d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Management is encouraged to supplement the disclosures required by this Subtopic with an analysis and discussion of the effects of rate changes on the reported results of operations. This type of disclosure might include the mathematical effects of translating revenue and expenses at rates that are different from those used in a preceding period as well as the economic effects of rate changes, such as the effects on selling prices, sales volume, and cost structures. The purpose is to assist financial report users in understanding the broader economic implications of rate changes and to compare recent results with those of prior periods. Source downloaded (UTC): 2026-09-10T01:47:04.710Z to 2026-09-10T01:47:04.710Z Record version: sha256:0f336680e7fd8e5076047531554ecb836ecc0827181625f1643555e00c62a947 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 830-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/830/20/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [830-20-55-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:47:04.710Z to 2026-09-10T01:47:04.710Z Record version: sha256:db5657054393a91b8681f9e5453221fdf36d3729896748ee056d29accae8990c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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.") used to obtain the [foreign currency](https://asc.understandingaccounting.org/glossary/f/#foreign-currency "A currency other than the functional currency of the entity being referred to (for example, the dollar could be a foreign currency for a foreign entity). Composites of currencies, such as the Special Drawing Rights, used to set prices or denominate amounts of loans, and so forth, have the characteristics of 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.) ##### [830-20-55-2](https://asc.understandingaccounting.org/asc/830/20/#830-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:47:04.710Z to 2026-09-10T01:47:04.710Z Record version: sha256:56dadeb91ce761db787005b34388b9f15ea5e2753e7534a463a7b5cffc40d2e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount by which the [local currency](https://asc.understandingaccounting.org/glossary/l/#local-currency "The currency of a particular country being referred to.") 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. ##### [830-20-55-3](https://asc.understandingaccounting.org/asc/830/20/#830-20-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:47:04.710Z to 2026-09-10T01:47:04.710Z Record version: sha256:4d53f2ff793b56a124c2a0c1ba304305f7d3d56da384a786ffa5fe4f428cd9ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [830-20-55-4](https://asc.understandingaccounting.org/asc/830/20/#830-20-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:47:04.710Z to 2026-09-10T01:47:04.710Z Record version: sha256:93b87cea610071c1fa822c41a4362e9adc51e3b7007ecd69825b8f77929ea4da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [830-10-55-10](https://asc.understandingaccounting.org/asc/830/10/#830-10-55-10) provides guidance on the use of averages or other methods of approximation in applying this Subtopic.