# ASC 830-946-50: Foreign Currency Matters — Financial Services—Investment Companies — 50 Disclosure

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/830/946/#50-disclosure)

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## ASC 830-946-50: 50 Disclosure

[Read section](https://asc.understandingaccounting.org/asc/830/946/#50-disclosure)

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##### [830-946-50-1](https://asc.understandingaccounting.org/asc/830/946/#830-946-50-1)

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An entity shall disclose its practice of either including or excluding that portion of realized and unrealized gains and losses on investments that results from foreign currency changes with or from other foreign currency gains and losses.

##### [830-946-50-2](https://asc.understandingaccounting.org/asc/830/946/#830-946-50-2)

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Foreign currency risk associated with investing in foreign securities shall be assessed continuously by management and considered for financial statement disclosure, including disclosures about all of the following:

1.  a
    
    Liquidity. Because certain foreign markets are illiquid, market prices may not necessarily represent [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.").
    
2.  b
    
    Size. If market capitalization is low, a fund's share in the entire market (particularly if single-country funds are involved) or in specific securities may be proportionately very large, and the fair value, consistent with Topic 820, may not be representative of the price that would be received if the fund sold its large proportion of the specific security ("block") at the measurement date.
    
3.  c
    
    Valuation. Because of liquidity problems as well as other factors, such as securities that are unlisted or securities that are traded in inactive markets, funds are required to develop procedures consistent with Topic 820 for measuring the fair values of such securities. Doing so may be difficult in a foreign environment; while others may perform the research and provide supporting documentation for fair values, the ultimate responsibility for determining the fair values of securities rests with the management.

##### [830-946-50-3](https://asc.understandingaccounting.org/asc/830/946/#830-946-50-3)

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These disclosures are no different from those that might be required for domestic securities with the same attributes. The preceding risks shall be disclosed in the notes to financial statements if such factors exist in the markets in which the fund has material investments.

##### [830-946-50-4](https://asc.understandingaccounting.org/asc/830/946/#830-946-50-4)

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For funds that invest in countries that are highly inflationary, the separate disclosure of the foreign currency element may not be meaningful and the disclosures in this Section may not be appropriate.