{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/830/30/#40-derecognition","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":"830-30","subtopic_title":"Translation of Financial Statements","section":{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":"Sale or Liquidation of an Investment in a Foreign Entity","paragraphs":[{"citation":"830-30-40-1","para":"40-1","html":"
Upon sale or upon complete or substantially complete liquidation of an investment in a foreign entity, the amount attributable to that entity and accumulated in the translation adjustment component of equity shall be both:
a
Removed from the separate component of equity
b
Reported as part of the gain or loss on sale or liquidation of the investment for the period during which the sale or liquidation occurs.
","snippet":"Upon sale or upon complete or substantially complete liquidation of an investment in a foreign entity, the amount attributable to that entity and accumulated in the translation adjustment component of equity shall be bot…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e468ca7a48d6f9453d0fc1bf5fea1c76056eb6430316d8cfc7d12d97901d37d1","downloaded_from":"2026-09-10T01:47:20.033Z","last_downloaded_at":"2026-09-10T01:47:20.033Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481724","source_sha256":"b1649afd0aa7c1e45f162a440742e7aa77e7a913d2735360213253239b3a3db3"}},{"citation":"830-30-40-1A","para":"40-1A","html":"
A sale shall include:
a
The loss of a controlling financial interest in an investment in a foreign entity resulting from circumstances contemplated by Subtopic 810-10 (see paragraph 810-10-55-4A for related implementation guidance)
b
An acquirer obtaining control of an acquiree in which it held an equity interest, accounted for as an equity method investment that is a foreign entity, immediately before the acquisition date in a business combination achieved in stages (see paragraphs
","snippet":"A sale shall include:\n(a) The loss of a controlling financial interest in an investment in a foreign entity resulting from circumstances contemplated by Subtopic 810-10 (see paragraph 810-10-55-4A for related implementat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb58a9e66876be0cb09fb64f505011ed6ffb17564a88488b026e5e4b432dbe5b","downloaded_from":"2026-09-10T01:47:20.033Z","last_downloaded_at":"2026-09-10T01:47:20.033Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481724","source_sha256":"b1649afd0aa7c1e45f162a440742e7aa77e7a913d2735360213253239b3a3db3"}},{"citation":"830-30-40-2","para":"40-2","html":"
If a reporting entity sells part of its ownership interest in an equity method investment that is a foreign entity, a pro rata portion of the accumulated translation adjustment component of equity attributable to that equity method investment shall be recognized in measuring the gain or loss on the sale. If the sale of part of an equity method investment that is a foreign entity results in the loss of significant influence, see paragraphs
for guidance on how to account for the pro rata portion of the accumulated translation adjustment component of equity attributable to the remaining investment. For guidance if an entity sells a noncontrolling interest in a consolidated foreign entity, but still retains a controlling financial interest in the foreign entity, see paragraph
","snippet":"If a reporting entity sells part of its ownership interest in an equity method investment that is a foreign entity, a pro rata portion of the accumulated translation adjustment component of equity attributable to that eq…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ddb397ac6c4dc5effaed465b4e6b7de83385d5ee28dcdfa195e370a74d260e85","downloaded_from":"2026-09-10T01:47:20.033Z","last_downloaded_at":"2026-09-10T01:47:20.033Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481724","source_sha256":"b1649afd0aa7c1e45f162a440742e7aa77e7a913d2735360213253239b3a3db3"}},{"citation":"830-30-40-3","para":"40-3","html":"
Although partial liquidations by a parent of net assets held within a foreign entity may be considered similar to a sale of part of an ownership interest in the foreign entity if the liquidation proceeds are distributed to the parent, extending pro rata recognition (release of the cumulative translation adjustment into net income) to such partial liquidations would require that their substance be distinguished from ordinary dividends. Such a distinction is neither possible nor desirable. For those partial liquidations, no cumulative translation adjustment is released into net income until the criteria in paragraph 830-30-40-1 are met.
","snippet":"Although partial liquidations by a parent of net assets held within a foreign entity may be considered similar to a sale of part of an ownership interest in the foreign entity if the liquidation proceeds are distributed …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:189117b2a4de19f32168d085b30e01d451752943cfc24631b589c2ffc390a2e3","downloaded_from":"2026-09-10T01:47:20.033Z","last_downloaded_at":"2026-09-10T01:47:20.033Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481724","source_sha256":"b1649afd0aa7c1e45f162a440742e7aa77e7a913d2735360213253239b3a3db3"}},{"citation":"830-30-40-4","para":"40-4","html":"
Under Subtopic 220-20, a gain or loss on disposal of part or all of a net investment may be recognized in a period other than that in which actual sale or liquidation occurs. Paragraph 830-30-40-1 does not alter the period in which a gain or loss on sale or liquidation is recognized under existing generally accepted accounting principles (GAAP).
","snippet":"Under Subtopic 220-20, a gain or loss on disposal of part or all of a net investment may be recognized in a period other than that in which actual sale or liquidation occurs. Paragraph 830-30-40-1 does not alter the peri…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e791c0c3017ffab0bbcc318a69c52d7662a05d8104255911c873cf68aeac205d","downloaded_from":"2026-09-10T01:47:20.033Z","last_downloaded_at":"2026-09-10T01:47:20.033Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481724","source_sha256":"b1649afd0aa7c1e45f162a440742e7aa77e7a913d2735360213253239b3a3db3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06ff906abf8f3774a6b580b1dc79972daa010054dc8d8f7ef15c53fffd7aadab","downloaded_from":"2026-09-10T01:47:20.033Z","last_downloaded_at":"2026-09-10T01:47:20.033Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481724","source_sha256":"b1649afd0aa7c1e45f162a440742e7aa77e7a913d2735360213253239b3a3db3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f345f6a0906c43fb625f3727a0928a4b32d16dfdd587e6aea8bff24a28f9f4d9","downloaded_from":"2026-09-10T01:47:20.033Z","last_downloaded_at":"2026-09-10T01:47:20.033Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481724","source_sha256":"b1649afd0aa7c1e45f162a440742e7aa77e7a913d2735360213253239b3a3db3"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f345f6a0906c43fb625f3727a0928a4b32d16dfdd587e6aea8bff24a28f9f4d9","downloaded_from":"2026-09-10T01:47:20.033Z","last_downloaded_at":"2026-09-10T01:47:20.033Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481724","source_sha256":"b1649afd0aa7c1e45f162a440742e7aa77e7a913d2735360213253239b3a3db3"}}