{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/830/946/#05-overview-and-background","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":"830-946","subtopic_title":"Financial Services—Investment Companies","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-946-05-1","para":"05-1","html":"
This Subtopic provides guidance on computing and reporting foreign currency transaction gains or losses for investment companies that do any of the following:
  1. a
    Invest in securities denominated or expected to settle in currencies other than the U.S. dollar
  2. b
    Invest in currencies other than the U.S. dollar
  3. c
    Have foreign currency transactions.
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A foreign currency gain or loss (whether realized or unrealized) results from any of the following sources:
  1. a
    The cost of securities held versus their carrying value based on current exchange rates
  2. b
    Payables or receivables for securities bought or sold at the transaction date versus actual amounts at settlement date or payable or receivable based on current exchange rates
  3. c
    Interest, dividends, and withholding taxes accrued versus the amount received or receivable based on current exchange rates
  4. d
    Expenses accrued versus the amount paid or payable in foreign currency, based on current exchange rates
  5. e
    Forward exchange contracts or foreign exchange futures contracts subsequently measured at fair value.
","snippet":"A foreign currency gain or loss (whether realized or unrealized) results from any of the following sources:\n(a) The cost of securities held versus their carrying value based on current exchange rates\n(b) Payables or rece…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:90b7ba249408f578c235bb05e70d4f5cb4b8affd2d95395b3c2c1c43d4dbcfe6","downloaded_from":"2026-09-10T01:47:52.540Z","last_downloaded_at":"2026-09-10T01:47:52.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477892","source_sha256":"990b0857bffc2c957ed5ec2438569b1d8ca264934f2b34de3e6b25616de66735"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08d95f244e0b52fc78866baa796840e944efac21aa5661fc28e62e9b9c5ed922","downloaded_from":"2026-09-10T01:47:52.540Z","last_downloaded_at":"2026-09-10T01:47:52.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477892","source_sha256":"990b0857bffc2c957ed5ec2438569b1d8ca264934f2b34de3e6b25616de66735"}},{"block":null,"heading":"Withholding Tax","paragraphs":[{"citation":"830-946-05-3","para":"05-3","html":"
This Subtopic includes guidance on effects of withholding tax. Dividends and interest received from foreign investments may result in withholding taxes and other taxes imposed by foreign countries, usually at rates from 10 percent to 35 percent. Tax treaties between certain countries and the United States may reduce or eliminate such taxes.
","snippet":"This Subtopic includes guidance on effects of withholding tax. Dividends and interest received from foreign investments may result in withholding taxes and other taxes imposed by foreign countries, usually at rates from …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a90cc677739db233a0ba23ae15c105d918b05aabf7a2c4aa316445d1c63d7c43","downloaded_from":"2026-09-10T01:47:52.540Z","last_downloaded_at":"2026-09-10T01:47:52.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477892","source_sha256":"990b0857bffc2c957ed5ec2438569b1d8ca264934f2b34de3e6b25616de66735"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e634616fcaa07e2f0f9ed957990c73666382c5ad139ba49549ab799c6d13f94","downloaded_from":"2026-09-10T01:47:52.540Z","last_downloaded_at":"2026-09-10T01:47:52.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477892","source_sha256":"990b0857bffc2c957ed5ec2438569b1d8ca264934f2b34de3e6b25616de66735"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:add4678deb34043eaf59bd9129f241efd7b5cb60ad577185825f154cb092a9ec","downloaded_from":"2026-09-10T01:47:52.540Z","last_downloaded_at":"2026-09-10T01:47:52.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477892","source_sha256":"990b0857bffc2c957ed5ec2438569b1d8ca264934f2b34de3e6b25616de66735"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:add4678deb34043eaf59bd9129f241efd7b5cb60ad577185825f154cb092a9ec","downloaded_from":"2026-09-10T01:47:52.540Z","last_downloaded_at":"2026-09-10T01:47:52.540Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477892","source_sha256":"990b0857bffc2c957ed5ec2438569b1d8ca264934f2b34de3e6b25616de66735"}}