{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/830/","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.","number":"830","title":"Foreign Currency Matters","area":"Broad Transactions","group":null,"subtopics":[{"number":"830-10","topic":"830","title":"Overall","area":"Broad Transactions","paragraphs":58,"summary":"ASC 830-10 sets the scope and foundational framework for foreign currency accounting: it requires each foreign entity's assets, liabilities, and operations to be measured in that entity's functional currency—the currency of the primary economic environment in which it operates (830-10-45-2)—before amounts are translated into the reporting currency. It supplies the economic indicators (cash flow, sales price, sales market, expense, financing, and intra-entity indicators in 830-10-55-5) that management weighs to identify the functional currency, mandates remeasurement of books of record not kept in the functional currency using historical rates for specified nonmonetary items (830-10-45-17 through 45-18), and requires entities in highly inflationary economies (cumulative 3-year inflation ≈100% or more) to be remeasured as if the reporting currency were the functional currency (830-10-45-11).","concepts":["functional currency","reporting currency","remeasurement","translation","highly inflationary economy","monetary and nonmonetary items","historical exchange rate","weighted average exchange rate"],"categories":["Foreign currency","Subsequent measurement","Consolidation","Financial statement presentation"],"level":"intermediate","topic_title":"Foreign Currency Matters","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-10-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Net Realizable Value Added Accounting Standards Update No. 2015-11 07/22/2015
Not-for-Profit Entity Added Accounting Standards Update No. 2010-07 01/28/2010
830-10-15-6 Amended Accounting Standards Update No. 2010-07 01/28/2010
830-10-45-1 Amended Accounting Standards Update No. 2015-01 01/09/2015
830-10-45-18 Amended Accounting Standards Update No. 2019-04 04/25/2019
830-10-45-19 Superseded Accounting Standards Update No. 2015-01 01/09/2015
830-10-55-2 Amended Maintenance Update 2014-07 (PDF) 03/17/2014
830-10-55-8 Amended Accounting Standards Update No. 2015-11 07/22/2015
830-10-55-9 Amended Accounting Standards Update No. 2015-11 07/22/2015
830-10-55-15 Amended Accounting Standards Update No. 2015-11 07/22/2015
830-10-55-17 Superseded Accounting Standards Update No. 2015-11 07/22/2015
830-10-55-18 Amended Accounting Standards Update No. 2015-11 07/22/2015
830-10-55-19 Amended Accounting Standards Update No. 2015-11 07/22/2015
830-10-55-20 through 55-22
 Superseded Accounting Standards Update No. 2015-11 07/22/2015
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nNet Realizable Value | Added | Accounting Standards Update No. 2015-11 | 07/22/2015 |\nNo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:17d4680196105e6819998a724c4e3a1f20ff1e4546d052f75adfe2d86b818d47","downloaded_from":"2026-09-10T01:46:09.742Z","last_downloaded_at":"2026-09-10T01:46:09.742Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481988","source_sha256":"bb1461ea15902f78d1e132140856a95862ccaea87f9c97888d1cbd938f218526"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c44da590fe1904c3a8300fbf3b5bc66ae38b387fd410b8fa6310915aac034447","downloaded_from":"2026-09-10T01:46:09.742Z","last_downloaded_at":"2026-09-10T01:46:09.742Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481988","source_sha256":"bb1461ea15902f78d1e132140856a95862ccaea87f9c97888d1cbd938f218526"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e0e0c15e065242feb2526ada0fef0c56eec336815055d80d7bff8185b557e93c","downloaded_from":"2026-09-10T01:46:09.742Z","last_downloaded_at":"2026-09-10T01:46:09.742Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481988","source_sha256":"bb1461ea15902f78d1e132140856a95862ccaea87f9c97888d1cbd938f218526"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-10-05-1","para":"05-1","html":"
The Foreign Currency Matters Topic provides guidance on foreign currency transactions and translation of financial statements. This Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Foreign Currency Transactions
  3. c
    Translation of Financial Statements
  4. d
    Statement of Cash Flows
  5. e
    Income Taxes.
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Financial statements are intended to present information in financial terms about the performance, financial position, and cash flows of a reporting entity. For this purpose, the financial statements of separate entities within a reporting entity, which may exist and operate in different economic and currency environments, are consolidated and presented as though they were the financial statements of a single reporting entity. Because it is not possible to combine, add, or subtract measurements expressed in different currencies, it is necessary to translate into a single reporting currency those assets, liabilities, revenues, expenses, gains, and losses that are measured or denominated in a foreign currency. Paragraph 830-10-55-1 discusses the meaning of measurement in a foreign currency.
","snippet":"Financial statements are intended to present information in financial terms about the performance, financial position, and cash flows of a reporting entity. For this purpose, the financial statements of separate entities…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:480dc3531985de0deeb9d06ac5ba8173fa6010bcf00aeaefff3a5b8c3d8c447c","downloaded_from":"2026-09-10T01:46:15.893Z","last_downloaded_at":"2026-09-10T01:46:15.893Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481930","source_sha256":"051b7280345b49a9a55ded2468b726e5d2d67c68ccd10df0ffbc0a183b09be90"}},{"citation":"830-10-10-2","para":"10-2","html":"
The unity presented by such translation does not alter the underlying significance of the results and relationships of the constituent parts of the reporting entity. It is only through the effective operation of its constituent parts that the reporting entity as a whole is able to achieve its purpose. Accordingly, the translation of the financial statements of each component entity of a reporting entity should accomplish both of the following objectives:
  1. a
    Provide information that is generally compatible with the expected economic effects of a rate change on a reporting entity's cash flows and equity
  2. b
    Reflect in consolidated statements the financial results and relationships of the individual consolidated entities as measured in their functional currencies in conformity with U.S. generally accepted accounting principles (GAAP).
","snippet":"The unity presented by such translation does not alter the underlying significance of the results and relationships of the constituent parts of the reporting entity. It is only through the effective operation of its cons…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf528b6a88c7785b6e6404986a2a85b474d3241f4bad42fa43ad9eb4d82610d4","downloaded_from":"2026-09-10T01:46:15.893Z","last_downloaded_at":"2026-09-10T01:46:15.893Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481930","source_sha256":"051b7280345b49a9a55ded2468b726e5d2d67c68ccd10df0ffbc0a183b09be90"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c63df640dae8022a44c57ce1c32d047bc28f6ae7e8aaad15f1b54ba6976d143f","downloaded_from":"2026-09-10T01:46:15.893Z","last_downloaded_at":"2026-09-10T01:46:15.893Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481930","source_sha256":"051b7280345b49a9a55ded2468b726e5d2d67c68ccd10df0ffbc0a183b09be90"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f66fe3d1b82e0499b08fab24f0e200588a9b20fe943643268c6fd83cb8715c84","downloaded_from":"2026-09-10T01:46:15.893Z","last_downloaded_at":"2026-09-10T01:46:15.893Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481930","source_sha256":"051b7280345b49a9a55ded2468b726e5d2d67c68ccd10df0ffbc0a183b09be90"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"830-10-15-1","para":"15-1","html":"
The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the Foreign Currency Matters Topic. Unless explicitly addressed within specific Subtopics, the following scope guidance applies to all Subtopics of the Foreign Currency Matters Topic.
","snippet":"The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the Foreign Currency Matters Topic. Unless explicitly addressed within specific Subtopics, the following scope guidance appli…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:89a42b5c71ed899bf4e9d0097b454810a83f1e6249158bad11e4bae697052eee","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c61c7c22fee0784326092b19094b871c03e32a032831e721f4004294f46684b","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"block":null,"heading":"Entities","paragraphs":[{"citation":"830-10-15-2","para":"15-2","html":"
The guidance in the Foreign Currency Matters Topic applies to all entities.
","snippet":"The guidance in the Foreign Currency Matters Topic applies to all entities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b823fef541e201200158b03554c0239f21c81c2b82a3e1b8b490631e33aef04c","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f765576915961b125f8e108eaaf2dd715fd1c3870ff0a57fb1784cb09e95b5f8","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"830-10-15-3","para":"15-3","html":"
The guidance in the Foreign Currency Matters Topic applies to all foreign currency transactions in financial statements of a reporting entity and all foreign currency statements that are incorporated in the financial statements of a reporting entity by consolidation, combination, or the equity method of accounting.
","snippet":"The guidance in the Foreign Currency Matters Topic applies to all foreign currency transactions in financial statements of a reporting entity and all foreign currency statements that are incorporated in the financial sta…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff9d8b71268412a733712021d0ff6938a6e535615b12f2a42aec58f0d7014cf7","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"citation":"830-10-15-4","para":"15-4","html":"
For convenience, this Topic assumes that the reporting entity uses the U.S. dollar as its reporting currency. However, a currency other than the U.S. dollar may be the reporting currency in financial statements that are prepared in conformity with U.S. generally accepted accounting principles (GAAP). For example, a foreign entity may report in its local currency in conformity with U.S. GAAP. If so, the requirements of this Topic apply.
","snippet":"For convenience, this Topic assumes that the reporting entity uses the U.S. dollar as its reporting currency. However, a currency other than the U.S. dollar may be the reporting currency in financial statements that are …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03986070dd9d24f30023afdd92e32ddcc28a477055203c3602f05ef9307ced72","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:85e28d7ed3e9f96af7779a7cb2c9c15abb0192785f0c5067394294c5d87548bb","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"block":null,"heading":"Other Considerations","paragraphs":[{"citation":"830-10-15-5","para":"15-5","html":"
The functional currency approach applies equally to translation of financial statements of foreign investees whether accounted for by the equity method or consolidated. Therefore, the foreign currency statements and the foreign currency transactions of an investee that are accounted for by the equity method shall be translated in conformity with the requirements of this Topic in applying the equity method.
","snippet":"The functional currency approach applies equally to translation of financial statements of foreign investees whether accounted for by the equity method or consolidated. Therefore, the foreign currency statements and the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:97b21a14349c2e75f4acdbcb8f718eb65fadf0e1eb05c4a54d603e1676e6bc10","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"citation":"830-10-15-6","para":"15-6","html":"
The functional currency approach also applies to translation after a business combination or a combination accounted for by a not-for-profit entity. See paragraph 830-30-45-11 for guidance.
","snippet":"The functional currency approach also applies to translation after a business combination or a combination accounted for by a not-for-profit entity. See paragraph 830-30-45-11 for guidance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9b7713c616135ba0b3f136fef4b0c1d8cb9b80c74c6a1503a54a8dec019f3dc","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"citation":"830-10-15-7","para":"15-7","html":"
Translation of financial statements from one currency to another for purposes other than consolidation, combination, or the equity method is beyond the scope of this Topic. For example, this Topic does not cover translation of the financial statements of a reporting entity from its reporting currency into another currency for the convenience of readers accustomed to that other currency.
","snippet":"Translation of financial statements from one currency to another for purposes other than consolidation, combination, or the equity method is beyond the scope of this Topic. For example, this Topic does not cover translat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9a38341d2dd5ec8708640a99f2457af3dff657cbac29bd9d099efc24b557e54","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c75f65889b011402d4d6bbd61e7ac26d3f2a325bfdec99335ead21bbfce2301e","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c1ec5b33c07afb8d63e8d9283b87c5348f8509236ea86acfd4844e6dd1d47dc","downloaded_from":"2026-09-10T01:46:18.142Z","last_downloaded_at":"2026-09-10T01:46:18.142Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481898","source_sha256":"698043de55c8ce06270e6780e3427023edcb08b475b89c6d5cb8346843eef2e8"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-10-45-1","para":"45-1","html":"
The guidance in this Section relates to how a reporting entity determines the functional currency of a foreign entity (including of a foreign entity in a highly inflationary economy), remeasures the books of record (if necessary), and characterizes transaction gains and losses. The guidance is organized as follows:
  1. a
    The functional currency
  2. b
    The functional currency in highly inflationary economies
  3. c
    Remeasurement of books of record into the functional currency
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2015-01.
","snippet":"The guidance in this Section relates to how a reporting entity determines the functional currency of a foreign entity (including of a foreign entity in a highly inflationary economy), remeasures the books of record (if n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba76e061375a634bb3de8c5b6d59dcd9447e3fa86490f6d2f9630b7f1847aadb","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7e8cd71105cb9245107c63bc7f083020b0a2f49db91b4ac76c03d7377e74dddc","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"block":null,"heading":"The Functional Currency","paragraphs":[{"citation":"830-10-45-2","para":"45-2","html":"
The assets, liabilities, and operations of a foreign entity shall be measured using the functional currency of that entity. 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.
","snippet":"The assets, liabilities, and operations of a foreign entity shall be measured using the functional currency of that entity. An entity's functional currency is the currency of the primary economic environment in which the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:326e1cf0a2208fd0a99e0005c33ccdc9dfa6b4b8d1f0b7e770c577fc5f8fb548","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-3","para":"45-3","html":"
It is neither possible nor desirable to provide unequivocal criteria to identify the functional currency of foreign entities under all possible facts and circumstances and still fulfill the objectives of foreign currency translation. Arbitrary rules that might dictate the identification of the functional currency in each case would accomplish a degree of superficial uniformity but, in the process, might diminish the relevance and reliability of the resulting information.
","snippet":"It is neither possible nor desirable to provide unequivocal criteria to identify the functional currency of foreign entities under all possible facts and circumstances and still fulfill the objectives of foreign currency…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3f27e1d4f54182d558c46485e219268a7adc1d1d7fe10a341a1f7eee2b6c8ed3","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-4","para":"45-4","html":"
Multinational reporting entities may consist of entities operating in a number of economic environments and dealing in a number of foreign currencies. All foreign operations are not alike. To fulfill the objectives in paragraph 830-10-10-2, it is necessary to recognize at least two broad classes of foreign operations:
  1. a
    In the first class are foreign operations that are relatively self-contained and integrated within a particular country or economic environment. The day-to-day operations are not dependent on the economic environment of the parent's functional currency; the foreign operation primarily generates and expends foreign currency. The foreign currency net cash flows that it generates may be reinvested or converted and distributed to the parent. For this class, the foreign currency is the functional currency.
  2. b
    In the second class are foreign operations that are primarily a direct and integral component or extension of the parent entity's operations. Significant assets may be acquired from the parent entity or otherwise by expending dollars and, similarly, the sale of assets may generate dollars that are available to the parent. Financing is primarily by the parent or otherwise from dollar sources. In other words, the day-to-day operations are dependent on the economic environment of the parent's currency, and the changes in the foreign entity's individual assets and liabilities impact directly on the cash flows of the parent entity in the parent's currency. For this class, the dollar is the functional currency.
","snippet":"Multinational reporting entities may consist of entities operating in a number of economic environments and dealing in a number of foreign currencies. All foreign operations are not alike. To fulfill the objectives in pa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a76a300975f740e1165cfab32baf5f1742d3c66ff14dd37dd5f82aa3b3f8c1d","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-5","para":"45-5","html":"
An entity might have more than one distinct and separable operation, such as a division or branch, in which case each operation may be considered a separate entity. If those operations are conducted in different economic environments, they might have different functional currencies.
","snippet":"An entity might have more than one distinct and separable operation, such as a division or branch, in which case each operation may be considered a separate entity. If those operations are conducted in different economic…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6d1de0ce05c54b76f9d23d375a42f7fe0577a555c03f5a7f6e2289f59cfb6cd6","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-6","para":"45-6","html":"
The functional currency of an entity is, in principle, a matter of fact. In some cases, the facts will clearly identify the functional currency; in other cases they will not. For example, if a foreign entity conducts significant amounts of business in two or more currencies, the functional currency might not be clearly identifiable. In those instances, the economic facts and circumstances pertaining to a particular foreign operation shall be assessed in relation to the stated objectives for foreign currency translation (see paragraphs
830-10-10-1 through 10-2
). Management's judgment will be required to determine the functional currency in which financial results and relationships are measured with the greatest degree of relevance and reliability.
","snippet":"The functional currency of an entity is, in principle, a matter of fact. In some cases, the facts will clearly identify the functional currency; in other cases they will not. For example, if a foreign entity conducts sig…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:73cf9bd6f15522944081ccbfc32b3990028b208bfee7fd210ea4f3259cdfa764","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-7","para":"45-7","html":"
Once the functional currency for a foreign entity is determined, that determination shall be used consistently unless significant changes in economic facts and circumstances indicate clearly that the functional currency has changed. Previously issued financial statements shall not be restated for any change in the functional currency.
","snippet":"Once the functional currency for a foreign entity is determined, that determination shall be used consistently unless significant changes in economic facts and circumstances indicate clearly that the functional currency …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4933d5e9a7327dbcdf2b4ee5bc9e8d27841b5add461cabf0fa7de0997e98f57b","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-8","para":"45-8","html":"
See paragraph 250-10-45-1 for guidance on adoption or modification of an accounting principle necessitated by transactions or events that are clearly different in substance from those previously occurring. Paragraphs
830-10-45-15 through 45-16
discuss changes related to highly inflationary economies.
","snippet":"See paragraph 250-10-45-1 for guidance on adoption or modification of an accounting principle necessitated by transactions or events that are clearly different in substance from those previously occurring. Paragraphs 830…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b2428387d24e794e99401f6105022be204e09928b2f42604fb2f17544f9a1ad7","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-9","para":"45-9","html":"
If the functional currency changes from the reporting currency to a foreign currency, the adjustment attributable to current-rate translation of nonmonetary assets as of the date of the change shall be reported in other comprehensive income.
","snippet":"If the functional currency changes from the reporting currency to a foreign currency, the adjustment attributable to current-rate translation of nonmonetary assets as of the date of the change shall be reported in other …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d78b76cbde51ad9d4362ccdc0e31bb7ecab2ca303c8604cd20f0c5db18a4f8b9","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-10","para":"45-10","html":"
If the functional currency changes from a foreign currency to the reporting currency, translation adjustments for prior periods shall not be removed from equity and the translated amounts for nonmonetary assets at the end of the prior period become the accounting basis for those assets in the period of the change and subsequent periods. This guidance shall be used also to account for a change in functional currency from the foreign currency to the reporting currency when an economy becomes highly inflationary.
","snippet":"If the functional currency changes from a foreign currency to the reporting currency, translation adjustments for prior periods shall not be removed from equity and the translated amounts for nonmonetary assets at the en…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a56b390af360565155a77ae99972f938456527f5570e9c0088aee1862a8ac8a5","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8c1d80efd17772d07968c5ebf77ccf6fc50c4785dae555e533a4beba4cf683e1","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"block":null,"heading":"The Functional Currency in Highly Inflationary Economies","paragraphs":[{"citation":"830-10-45-11","para":"45-11","html":"
The financial statements of a foreign entity in a highly inflationary economy shall be remeasured as if the functional currency were the reporting currency. Accordingly, the financial statements of those entities shall be remeasured into the reporting currency according to the requirements of paragraph 830-10-45-17. For the purposes of this requirement, a highly inflationary economy is one that has cumulative inflation of approximately 100 percent or more over a 3-year period.
","snippet":"The financial statements of a foreign entity in a highly inflationary economy shall be remeasured as if the functional currency were the reporting currency. Accordingly, the financial statements of those entities shall b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9dd7d1583af0e214d094032979fd14b1f6bd5be7f46b093a8fd82ffc2db77cf5","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-12","para":"45-12","html":"
The determination of a highly inflationary economy must begin by calculating the cumulative inflation rate for the three years that precede the beginning of the reporting period, including interim reporting periods. If that calculation results in a cumulative inflation rate in excess of 100 percent, the economy shall be considered highly inflationary in all instances. However, if that calculation results in the cumulative rate being less than 100 percent, historical inflation rate trends (increasing or decreasing) and other pertinent economic factors should be considered to determine whether such information suggests that classification of the economy as highly inflationary is appropriate. Projections cannot be used to overcome the presumption that an economy is highly inflationary if the 3-year cumulative rate exceeds 100 percent.
","snippet":"The determination of a highly inflationary economy must begin by calculating the cumulative inflation rate for the three years that precede the beginning of the reporting period, including interim reporting periods. If t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2bff4dd6bb509bf8793c9eab35aa73ffb41083e0cda120e1fadbbf3b41b22e85","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-13","para":"45-13","html":"
The definition of a highly inflationary economy is necessarily an arbitrary decision. In some instances, the trend of inflation might be as important as the absolute rate. The definition of a highly inflationary economy shall be applied with judgment.
","snippet":"The definition of a highly inflationary economy is necessarily an arbitrary decision. In some instances, the trend of inflation might be as important as the absolute rate. The definition of a highly inflationary economy …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6550f6fba2d6eb20630669c6512cac9fa27135ecc8a8d8efa65689c15db770c7","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-14","para":"45-14","html":"
Example 3 (see paragraph 830-10-55-23) illustrates the application of this guidance.
","snippet":"Example 3 (see paragraph 830-10-55-23) illustrates the application of this guidance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b6132ab3115f607ceb3393b2869b183fc503c7fc2dd2cf2cd205514b93457f58","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-15","para":"45-15","html":"
If an entity's subsidiary's functional currency changes from the reporting currency to the local currency because the economy ceases to be considered highly inflationary, the entity shall restate the functional currency accounting bases of nonmonetary assets and liabilities at the date of change as follows:
  1. a
    The reporting currency amounts at the date of change shall be translated into the local currency at current exchange rates.
  2. b
    The translated amounts shall become the new functional currency accounting basis for the nonmonetary assets and liabilities.
Example 1 (see paragraph 830-10-55-12) illustrates the application of this guidance.
","snippet":"If an entity's subsidiary's functional currency changes from the reporting currency to the local currency because the economy ceases to be considered highly inflationary, the entity shall restate the functional currency …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8627d83c5b4cd6f4a522761d4f14d5d11f4f3e45251be54131441546a3aece7b","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-16","para":"45-16","html":"
When the functional currency is the reporting currency, paragraph 740-10-25-3(f) prohibits recognition of deferred tax benefits that result from indexing for tax purposes assets and liabilities that are remeasured into the reporting currency using historical exchange rates. Thus, deferred tax benefits attributable to any such indexing that occurs after the change in functional currency to the reporting currency shall be recognized when realized on the tax return and not before. Deferred tax benefits that were recognized for indexing before the change in functional currency to the reporting currency are eliminated when the related indexed amounts shall be realized as deductions for tax purposes.
","snippet":"When the functional currency is the reporting currency, paragraph 740-10-25-3(f) prohibits recognition of deferred tax benefits that result from indexing for tax purposes assets and liabilities that are remeasured into t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:681b0b4868e5d07a07a779a6c0da5c0e59dc3bbc4dd1175ba4c0770422f471de","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f97cf5573e3fb851453f7289fdf5b67c3b406c9be4f06586d6b1e2596ed9462a","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"block":null,"heading":"Remeasurement of the Books of Record Into the Functional Currency","paragraphs":[{"citation":"830-10-45-17","para":"45-17","html":"
If an entity's books of record are not maintained in its functional currency, remeasurement into the functional currency is required. That remeasurement is required before translation into the reporting currency. If a foreign entity's functional currency is the reporting currency, remeasurement into the reporting currency obviates translation. The remeasurement of and subsequent accounting for transactions denominated in a currency other than the functional currency shall be in accordance with the requirements of Subtopic 830-20. The remeasurement process is intended to produce the same result as if the entity's books of record had been maintained in the functional currency. To accomplish that result, it is necessary to use historical exchange rates between the functional currency and another currency in the remeasurement process for certain accounts (the current rate will be used for all others), and this guidance identifies those accounts. To accomplish that result, it is also necessary to recognize currently in income all exchange gains and losses from remeasurement of monetary assets and liabilities that are not denominated in the functional currency (for example, assets and liabilities that are not denominated in dollars if the dollar is the functional currency).
","snippet":"If an entity's books of record are not maintained in its functional currency, remeasurement into the functional currency is required. That remeasurement is required before translation into the reporting currency. If a fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36a09df505596b42ac813f2380c213884af8cdb0f1a1f54b05050339b05192ba","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-18","para":"45-18","html":"
All of the following are common nonmonetary balance sheet items and related revenue, expense, gain, and loss accounts that shall be remeasured using historical rates to produce the same result in terms of the functional currency that would have occurred if those items had been initially recorded in the functional currency:
  1. a
    Equity securities without readily determinable fair values accounted for in accordance with paragraph 321-10-35-2. The historical rate to be used shall be the exchange rate as of the later of the acquisition date or the most recent date on which the equity security was adjusted to fair value in accordance with paragraphs
    321-10-35-2 through 35-3
    , if applicable.
    1. 1
      Subparagraph superseded by Accounting Standards Update No. 2019-04.
    2. 2
      Subparagraph superseded by Accounting Standards Update No. 2019-04.
  2. b
    Inventories carried at cost
  3. c
    Prepaid expenses such as insurance, advertising, and rent
  4. d
    Property, plant, and equipment
  5. e
    Accumulated depreciation on property, plant, and equipment
  6. f
    Patents, trademarks, licenses, and formulas
  7. g
    Goodwill
  8. h
    Other intangible assets
  9. i
    Deferred charges and credits, except policy acquisition costs for life insurance companies
  10. j
    Deferred income
  11. k
    Common stock
  12. l
    Preferred stock carried at issuance price
  13. m
    Revenues and expenses related to nonmonetary items, for example:
    1. 1
      Cost of goods sold
    2. 2
      Depreciation of property, plant, and equipment
    3. 3
      Amortization of intangible items such as patents, licenses, and so forth
    4. 4
      Amortization of deferred charges or credits except policy acquisition costs for life insurance entities.
","snippet":"All of the following are common nonmonetary balance sheet items and related revenue, expense, gain, and loss accounts that shall be remeasured using historical rates to produce the same result in terms of the functional …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:24bd930f9c09e41c127e5a3c535aa6468b400f45f2c07c5b1bd9fe95327502da","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"citation":"830-10-45-19","para":"45-19","html":"
Paragraph superseded by Accounting Standards Update No. 2015-01.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2015-01.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c584d28000a1d163adcf84a2b125f9da5e13d9241e928085b9cd8a03c894fb28","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6258c1b2ddb059c049f35e78e9f30e678e426eb2d238eaaad40f090da749e15d","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15d325c16a58c999d79f458f48cc352753c3a0d78c2fe191a8d91e7a5cda7b71","downloaded_from":"2026-09-10T01:46:22.095Z","last_downloaded_at":"2026-09-10T01:46:22.095Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481839","source_sha256":"810c6d97b424142c5bfbfe3604d6da5ba0840891e8c5bc4d7042a50f5d726de0"}},{"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":"830-10-55-1","para":"55-1","html":"
To measure in foreign currency is to quantify an attribute of an item in a unit of currency other than the reporting currency. Assets and liabilities are denominated in a foreign currency if their amounts are fixed in terms of that foreign currency regardless of exchange rate changes. An asset or liability may be both measured and denominated in one currency, or it may be measured in one currency and denominated in another.
","snippet":"To measure in foreign currency is to quantify an attribute of an item in a unit of currency other than the reporting currency. Assets and liabilities are denominated in a foreign currency if their amounts are fixed in te…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b30b556559e904765bad1f06a7fba1fef03972cac4e7904f0ed034a5ceb1c45","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-2","para":"55-2","html":"
For example, two foreign branches of a U.S. entity, one Swiss and one German, purchase identical assets on credit from a Swiss vendor at identical prices stated in Swiss francs. The German branch measures the cost (an attribute) of that asset in euros. Although the corresponding liability is also measured in euros, it remains denominated in Swiss francs since the liability must be settled in a specified number of Swiss francs. The Swiss branch measures the asset and liability in Swiss francs. Its liability is both measured and denominated in Swiss francs. Although assets and liabilities can be measured in various currencies, rights to receive or obligations to pay fixed amounts of a currency are, by definition, denominated in that currency.
","snippet":"For example, two foreign branches of a U.S. entity, one Swiss and one German, purchase identical assets on credit from a Swiss vendor at identical prices stated in Swiss francs. The German branch measures the cost (an at…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4c5e45f293dd33d8da47ae1874b0003d222a74416d7ac5d7ce773b45b379784","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-3","para":"55-3","html":"
The following provides guidance for determination of the functional currency. The economic factors cited here, and possibly others, should be considered both individually and collectively when determining the functional currency.
","snippet":"The following provides guidance for determination of the functional currency. The economic factors cited here, and possibly others, should be considered both individually and collectively when determining the functional …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab2d288a2b034d8670f387a0016956188674e5868e3c4ce6c1a768026c33f25f","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-4","para":"55-4","html":"
This general guidance presents indicators of facts to be considered in identifying the functional currency. In those instances in which the indicators are mixed and the functional currency is not obvious, management's judgment will be required to determine the functional currency that most faithfully portrays the economic results of the entity's operations and thereby best achieves the objectives of foreign currency translation set forth in paragraph 830-10-10-2. Management is in the best position to obtain the pertinent facts and weigh their relative importance in determining the functional currency for each operation. It is important to recognize that management's judgment is essential and paramount in this determination, provided only that it is not contradicted by the facts.
","snippet":"This general guidance presents indicators of facts to be considered in identifying the functional currency. In those instances in which the indicators are mixed and the functional currency is not obvious, management's ju…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3450f5db21361989e0ee7b9ab4dd3bc22af815c9de39a226f67ec20976af090","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-5","para":"55-5","html":"
The following salient economic factors, and possibly others, should be considered both individually and collectively when determining the functional currency:
  1. a
    Cash flow indicators, for example:
    1. 1
      Foreign currency. Cash flows related to the foreign entity's individual assets and liabilities are primarily in the foreign currency and do not directly affect the parent entity's cash flows.
    2. 2
      Parent's currency. Cash flows related to the foreign entity's individual assets and liabilities directly affect the parent's cash flows currently and are readily available for remittance to the parent entity.
  2. b
    Sales price indicators, for example:
    1. 1
      Foreign currency. Sales prices for the foreign entity's products are not primarily responsive on a short-term basis to changes in exchange rates but are determined more by local competition or local government regulation.
    2. 2
      Parent's currency. Sales prices for the foreign entity's products are primarily responsive on a short-term basis to changes in exchange rates; for example, sales prices are determined more by worldwide competition or by international prices.
  3. c
    Sales market indicators, for example:
    1. 1
      Foreign currency. There is an active local sales market for the foreign entity's products, although there also might be significant amounts of exports.
    2. 2
      Parent's currency. The sales market is mostly in the parent's country or sales contracts are denominated in the parent's currency.
  4. d
    Expense indicators, for example:
    1. 1
      Foreign currency. Labor, materials, and other costs for the foreign entity's products or services are primarily local costs, even though there also might be imports from other countries.
    2. 2
      Parent's currency. Labor, materials, and other costs for the foreign entity's products or services continually are primarily costs for components obtained from the country in which the parent entity is located.
  5. e
    Financing indicators, for example:
    1. 1
      Foreign currency. Financing is primarily denominated in foreign currency, and funds generated by the foreign entity's operations are sufficient to service existing and normally expected debt obligations.
    2. 2
      Parent's Currency—Financing is primarily from the parent or other dollar-denominated obligations, or funds generated by the foreign entity's operations are not sufficient to service existing and normally expected debt obligations without the infusion of additional funds from the parent entity. Infusion of additional funds from the parent entity for expansion is not a factor, provided funds generated by the foreign entity's expanded operations are expected to be sufficient to service that additional financing.
  6. f
    Intra-entity transactions and arrangements indicators, for example:
    1. 1
      Foreign currency. There is a low volume of intra-entity transactions and there is not an extensive interrelationship between the operations of the foreign entity and the parent entity. However, the foreign entity's operations may rely on the parent's or affiliates' competitive advantages, such as patents and trademarks.
    2. 2
      Parent's currency. There is a high volume of intra-entity transactions and there is an extensive interrelationship between the operations of the foreign entity and the parent entity. Additionally, the parent's currency generally would be the functional currency if the foreign entity is a device or shell corporation for holding investments, obligations, intangible assets, and so forth, that could readily be carried on the parent's or an affiliate's books.
","snippet":"The following salient economic factors, and possibly others, should be considered both individually and collectively when determining the functional currency:\n(a) Cash flow indicators, for example:\n(1) Foreign currency. …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:10aa14681a3f4ad231abe6992c61db8ba129e2e9c27a88adbdd4edf53b6312a9","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-6","para":"55-6","html":"
In some instances, a foreign entity might have more than one distinct and separable operation. For example, a foreign entity might have one operation that sells parent-entity-produced products and another operation that manufactures and sells foreign-entity-produced products. If they are conducted in different economic environments, those two operations might have different functional currencies. Similarly, a single subsidiary of a financial institution might have relatively self-contained and integrated operations in each of several different countries. In those circumstances, each operation may be considered to be an entity as that term is used in this Subtopic, and, based on the facts and circumstances, each operation might have a different functional currency.
","snippet":"In some instances, a foreign entity might have more than one distinct and separable operation. For example, a foreign entity might have one operation that sells parent-entity-produced products and another operation that …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd4d14a85a9499f3522fe5572bc023308230d6bce05451290139dcc51a222c62","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-7","para":"55-7","html":"
Foreign investments that are consolidated or accounted for by the equity method are controlled by or subject to significant influence by the parent entity. Likewise, the parent's currency is often used for measurements, assessments, evaluations, projections, and so forth, pertaining to foreign investments as part of the management decision-making process. Such management control, decisions, and resultant actions may reflect, indicate, or create economic facts and circumstances. However, the exercise of significant management control and the use of the parent's currency for decision-making purposes do not determine, per se, that the parent's currency is the functional currency for foreign operations.
","snippet":"Foreign investments that are consolidated or accounted for by the equity method are controlled by or subject to significant influence by the parent entity. Likewise, the parent's currency is often used for measurements, …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f423eafcff3d5ca8e25b25236960e740cb068fd1b09dd64e5039ff4a319b2866","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-8","para":"55-8","html":"
The guidance on the subsequent measurement of inventory in Subtopic 330-10 requires special application when the books of record are not kept in the functional currency. Inventories carried at cost in the books of record in another currency should be first remeasured to cost in the functional currency using historical exchange rates. Then, historical cost in the functional currency should be evaluated for impairment under the subsequent measurement guidance using the functional currency. Application of the subsequent measurement guidance in functional currency may require a write-down in the functional currency statements even though no write-down has been made in the books of record maintained in another currency. Likewise, a write-down in the books of record may need to be reversed if the application of the subsequent measurement guidance in the functional currency does not require a write-down. If inventory has been written down in the functional currency statements, that functional currency amount shall continue to be the carrying amount in the functional currency financial statements until the inventory is sold or a further write-down is necessary. An asset other than inventory may sometimes be written down from historical cost. Although different measurement guidance may be used to determine that write-down, the approach described in this paragraph might be appropriate. That is, a write-down may be required in the functional currency statements even though not required in the books of record, and a write-down in the books of record may need to be reversed before remeasurement to prevent the remeasured amount from exceeding functional currency historical cost.
","snippet":"The guidance on the subsequent measurement of inventory in Subtopic 330-10 requires special application when the books of record are not kept in the functional currency. Inventories carried at cost in the books of record…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ba813c13db8ef195ff60736993fe9f8ba3c57d70c03c448d290332230146fef","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-9","para":"55-9","html":"
Literal application of the subsequent measurement guidance in Subtopic 330-10 may require an inventory write-down in functional currency financial statements for locally acquired inventory if the value of the currency in which the books of record are maintained has declined in relation to the functional currency between the date the inventory was acquired and the date of the balance sheet. However, such a write-down may not be necessary, for example, for inventory measured using the first-in, first out (FIFO) methodology, if the net realizable value expressed in the currency in which the books of record are maintained has increased sufficiently so that net realizable value exceeds historical cost as measured in functional currency. Cases A and B in Example 2 (see paragraphs
830-10-55-15 through 55-16
and
830-10-55-18 through 55-19
) illustrate this situation. This paragraph is not intended to preclude recognition of gains in a later interim period to the extent of inventory losses recognized from net realizable value declines in earlier interim periods if losses on the same inventory are recovered in the same year, as provided by paragraph 270-10-45-6(c). An inventory write-down also may be required for imported inventory.
","snippet":"Literal application of the subsequent measurement guidance in Subtopic 330-10 may require an inventory write-down in functional currency financial statements for locally acquired inventory if the value of the currency in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9a54c787a835fd80c16ba2535b868b2a68f10e60f7d175071b726ec86b3d1ce","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-10","para":"55-10","html":"
Literal application of the standards in this Subtopic might require a degree of detail in record keeping and computations that could be burdensome as well as unnecessary to produce reasonable approximations of the results. Accordingly, it is acceptable to use averages or other methods of approximation. For example, because translation at the exchange rates at the dates the numerous revenues, expenses, gains, and losses are recognized is generally impractical, an appropriately weighted average exchange rate for the period may be used to translate those elements. Likewise, the use of other time- and effort-saving methods to approximate the results of detailed calculations is permitted.
","snippet":"Literal application of the standards in this Subtopic might require a degree of detail in record keeping and computations that could be burdensome as well as unnecessary to produce reasonable approximations of the result…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1286b26be4615f3d2fdd07b19063b3d7d1bfc99121687e2af99940e96ef5cdcd","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-11","para":"55-11","html":"
Average rates used shall be appropriately weighted by the volume of functional currency transactions occurring during the accounting period. For example, to translate revenue and expense accounts for an annual period, individual revenue and expense accounts for each quarter or month may be translated at that quarter's or that month's average rate. The translated amounts for each quarter or month should then be combined for the annual totals.
","snippet":"Average rates used shall be appropriately weighted by the volume of functional currency transactions occurring during the accounting period. For example, to translate revenue and expense accounts for an annual period, in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45e04c2f91525723392649183d9923c8aac6c77eb448ccf820d049642494f4ba","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:993b70f549cc7abefdaf14b1b784fc0c30384d0a3e2933e453840f459e5f1c29","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"830-10-55-12","para":"55-12","html":"
This Example illustrates the application of paragraph 830-10-45-15.
","snippet":"This Example illustrates the application of paragraph 830-10-45-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8180eb7c46bae7faa6d7a40764ad999a8457148e17ae687f3dca28adad46f484","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-13","para":"55-13","html":"
A foreign subsidiary of a U.S. entity operating in a highly inflationary economy purchased equipment with a 10-year useful life for 100,000 local currency (LC) on January 1, 19X1. The exchange rate on the purchase date was LC 10 to USD 1, so the U.S. dollar equivalent cost was USD 10,000. On December 31, 19X5, the equipment has a net book value on the subsidiary's local books of LC 50,000 (original cost of LC 100,000 less accumulated depreciation of LC 50,000) and the current exchange rate is LC 75 to the U.S. dollar. In the U.S. parent's financial statements, annual depreciation expense of USD 1,000 has been reported for each of the past 5 years, and at December 31, 19X5, the equipment is reported at USD 5,000 (foreign currency basis measured at the historical exchange rate).
","snippet":"A foreign subsidiary of a U.S. entity operating in a highly inflationary economy purchased equipment with a 10-year useful life for 100,000 local currency (LC) on January 1, 19X1. The exchange rate on the purchase date w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:66dd4614642e46b3b0c9ffee40c4280d4813d87d86d102fab704f4bbca97f3c0","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-14","para":"55-14","html":"
As of the beginning of 19X6, the economy of the subsidiary ceases to be considered highly inflationary. Under paragraph 830-10-45-15, a new functional currency accounting basis for the equipment would be established as of January 1, 19X6, by translating the reporting currency amount of USD 5,000 into the functional currency at the current exchange rate of LC 75 to the U.S. dollar. The new functional currency accounting basis at the date of change would be LC 375,000. For U.S. reporting purposes, pursuant to this Subtopic, the new functional currency accounting basis and related depreciation would subsequently be translated into U.S. dollars at current and average exchange rates, respectively.
","snippet":"As of the beginning of 19X6, the economy of the subsidiary ceases to be considered highly inflationary. Under paragraph 830-10-45-15, a new functional currency accounting basis for the equipment would be established as o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c1e9465fc6a124eeedf5bca91d8fcd8d43efbe8ed2f3b9b25aad21b94193b1f4","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-15","para":"55-15","html":"
The following Cases illustrate this Section's implementation guidance on remeasurement of inventory that is measured using first-in, first-out (FIFO) and is not recorded in the functional currency (see paragraphs 830-10-45-18 and
830-10-55-8 through 55-9
):
  1. a
    Historical cost in functional currency exceeds net realizable value in functional currency (Case A)
    1. 1
      Subparagraph superseded by Accounting Standards Update No. 2015-11.
    2. 2
      Subparagraph superseded by Accounting Standards Update No. 2015-11.
  2. b
    Net realizable value in functional currency exceeds historical cost in functional currency (Case B).
","snippet":"The following Cases illustrate this Section's implementation guidance on remeasurement of inventory that is measured using first-in, first-out (FIFO) and is not recorded in the functional currency (see paragraphs 830-10-…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f8dd5edcbae96ded60a22714974b90a84aa71277805fac929b06cdacce51e46","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-16","para":"55-16","html":"
Cases A and B share all of the following assumptions:
  1. a
    BR is the currency in which the books of record are maintained.
  2. b
    FC is the functional currency.
  3. c
    When the rate is BR 1 = FC 2.40, a foreign subsidiary of a U.S. entity purchases a unit of inventory at a cost of BR 500 (measured in functional currency, FC 1,200).
  4. d
    At the foreign subsidiary's balance sheet date, the current rate is BR 1 = FC 2.00.
","snippet":"Cases A and B share all of the following assumptions:\n(a) BR is the currency in which the books of record are maintained.\n(b) FC is the functional currency.\n(c) When the rate is BR 1 = FC 2.40, a foreign subsidiary of a …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:261d669ea32540a94e237be2fdd9a9276d1ca9461e2a92b178102d82d414a1cd","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-17","para":"55-17","html":"
Paragraph superseded by Accounting Standards Update No. 2015-11.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2015-11.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c28a13ea8c138f5bd127002c967109ca5cf6d689d37886e86ae432a2c32b8224","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-18","para":"55-18","html":"
Assume the net realizable value of the unit of inventory is BR 560 (measured in functional currency, FC 1,120). Because net realizable value as measured in the functional currency (FC 1,120) is less than historical cost as measured in the functional currency (FC 1,200), an inventory write-down of FC 80 is required in the functional currency financial statements.
","snippet":"Assume the net realizable value of the unit of inventory is BR 560 (measured in functional currency, FC 1,120). Because net realizable value as measured in the functional currency (FC 1,120) is less than historical cost …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c113487c80ca7a3486d8fe531e95e4cff29f63f5a2f1bae71ec61e941f431121","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-19","para":"55-19","html":"
Assume the net realizable value at the foreign subsidiary's balance sheet date is BR 620. Because net realizable value as measured in the functional currency (BR 620 x FC 2.00 = FC 1,240) exceeds historical cost as measured in the functional currency (BR 500 x FC 2.40 = FC 1,200), an inventory write-down is not required in the functional currency financial statements.
","snippet":"Assume the net realizable value at the foreign subsidiary's balance sheet date is BR 620. Because net realizable value as measured in the functional currency (BR 620 x FC 2.00 = FC 1,240) exceeds historical cost as measu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:559e4d3d8f5f72b75fb5fa23ae65fda2c3d0aa8f6af3092a82f0dafa4e3efcc4","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-20","para":"55-20","html":"
Paragraph superseded by Accounting Standards Update No. 2015-11.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2015-11.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d89a6e3c530e6469feefe1da9fd54a61ccf88fc0e4aaf61b6025319311f7f43a","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-21","para":"55-21","html":"
Paragraph superseded by Accounting Standards Update No. 2015-11.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2015-11.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:04b245b7f8a2f4a806d5e9059f9ed8234853b3c95d357352c927da6771227643","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-22","para":"55-22","html":"
Paragraph superseded by Accounting Standards Update No. 2015-11.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2015-11.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0cd8503bcee0660b5400f174a1f6bd02c64dbf9adbd11c19104dfab372d2277f","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-23","para":"55-23","html":"
The following Cases illustrate the application of paragraph 830-10-45-12:
  1. a
    The cumulative 3-year inflation rate exceeds 100 percent (Case A).
  2. b
    The cumulative 3-year inflation rate drops below 100 percent but no evidence suggests that drop is other than temporary (Case B).
  3. c
    The cumulative 3-year inflation rate drops below 100 percent after having spiked above 100 percent (Case C).
","snippet":"The following Cases illustrate the application of paragraph 830-10-45-12:\n(a) The cumulative 3-year inflation rate exceeds 100 percent (Case A).\n(b) The cumulative 3-year inflation rate drops below 100 percent but no evi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5a03234234ca03623b4c5ec661144e60f907db260636e789b18e9cc6cab7f6d8","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-24","para":"55-24","html":"
Country A's economy at the beginning of 19X9 continues to be classified as highly inflationary because the cumulative 3-year rate is in excess of 100 percent (see the following table). The recent trend of declining inflation rates should not be extrapolated to project future rates to overcome the classification that results from the calculation.
","snippet":"Country A's economy at the beginning of 19X9 continues to be classified as highly inflationary because the cumulative 3-year rate is in excess of 100 percent (see the following table). The recent trend of declining infla…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:98e084bf1082f3ed8368cafd568301ed50eed6a80a3cbb86a0ca4e894381cb78","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-25","para":"55-25","html":"
Country B's economy at the beginning of 19X9 should continue to be classified as highly inflationary even though the cumulative 3-year rate is less than 100 percent (see the following table) because there is no evidence to suggest that the drop below the 100 percent cumulative rate is other than temporary and the annual rate of inflation during the preceding 8 years has been high.
","snippet":"Country B's economy at the beginning of 19X9 should continue to be classified as highly inflationary even though the cumulative 3-year rate is less than 100 percent (see the following table) because there is no evidence …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:391d022da41eec3d09f40fc282a7768b2e6c384e5e476571732006e14efa7eb5","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"citation":"830-10-55-26","para":"55-26","html":"
Country C's economy at the beginning of 19X9 should no longer be classified as highly inflationary because the cumulative 3-year rate is less than 100 percent (see the following table) and the historical inflation rates suggest that the prior classification resulted from an isolated spike in the annual inflation rate.
","snippet":"Country C's economy at the beginning of 19X9 should no longer be classified as highly inflationary because the cumulative 3-year rate is less than 100 percent (see the following table) and the historical inflation rates …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c8be43975b6e76d847e26ff5efd4eb6703a0dd105364c66e1b17c8e63051c13","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc79b9b6584fac0702c34fbf6d3e3e459a297fad13e06d098d8b5448038fa379","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03fde39898e1b489daf8874e5ca9381aa2cf8fa1a1d52c84fe44cb01c18b0310","downloaded_from":"2026-09-10T01:46:26.217Z","last_downloaded_at":"2026-09-10T01:46:26.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481810","source_sha256":"bd7331241f282c75f5e8dd82dbcb8073181992dd5dbc6062eee4028baa7c8793"}},{"number":"60","label":"60 Relationships","anchor":"60-relationships","is_sec":false,"groups":[{"block":null,"heading":"Income Taxes","paragraphs":[{"citation":"830-10-60-1","para":"60-1","html":"
For guidance on the tax effects of translation adjustments, see paragraph 740-20-45-11(b).
","snippet":"For guidance on the tax effects of translation adjustments, see paragraph 740-20-45-11(b).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39a564da3257ec6b0db2137846e1df40040fbd759d0bbf06b7dd774cf87bed94","downloaded_from":"2026-09-10T01:46:28.604Z","last_downloaded_at":"2026-09-10T01:46:28.604Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481780","source_sha256":"bab23766872e7b3f92a571345308bb23b95e0209ea81c143acbe3e215195ed0a"}},{"citation":"830-10-60-2","para":"60-2","html":"
For guidance on an increase in the tax basis of assets because of indexing when the local currency is the functional currency, see paragraph 740-10-25-20(g).
","snippet":"For guidance on an increase in the tax basis of assets because of indexing when the local currency is the functional currency, see paragraph 740-10-25-20(g).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af44383e191ae6743073e0a7430e9f4c502cb322bb0895b3c09c8fcd288583bd","downloaded_from":"2026-09-10T01:46:28.604Z","last_downloaded_at":"2026-09-10T01:46:28.604Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481780","source_sha256":"bab23766872e7b3f92a571345308bb23b95e0209ea81c143acbe3e215195ed0a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:59759426c884b572b9d3d6e57cb9d8b07dfa1bc3754d25ada2f06511de557e3d","downloaded_from":"2026-09-10T01:46:28.604Z","last_downloaded_at":"2026-09-10T01:46:28.604Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481780","source_sha256":"bab23766872e7b3f92a571345308bb23b95e0209ea81c143acbe3e215195ed0a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:49a3abff357ac2b11830f19ae20ef0d3512bd6533815c4ead0e49551200fbaf2","downloaded_from":"2026-09-10T01:46:28.604Z","last_downloaded_at":"2026-09-10T01:46:28.604Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481780","source_sha256":"bab23766872e7b3f92a571345308bb23b95e0209ea81c143acbe3e215195ed0a"}}],"enrichment":{"summary":"ASC 830-10 sets the scope and foundational framework for foreign currency accounting: it requires each foreign entity's assets, liabilities, and operations to be measured in that entity's functional currency—the currency of the primary economic environment in which it operates (830-10-45-2)—before amounts are translated into the reporting currency. It supplies the economic indicators (cash flow, sales price, sales market, expense, financing, and intra-entity indicators in 830-10-55-5) that management weighs to identify the functional currency, mandates remeasurement of books of record not kept in the functional currency using historical rates for specified nonmonetary items (830-10-45-17 through 45-18), and requires entities in highly inflationary economies (cumulative 3-year inflation ≈100% or more) to be remeasured as if the reporting currency were the functional currency (830-10-45-11).","key_points":["The Topic applies to all entities, to all foreign currency transactions, and to all foreign currency statements incorporated by consolidation, combination, or the equity method; convenience translations for readers are outside its scope (830-10-15-2 through 15-7).","Translation must both reflect the expected economic effects of rate changes on the reporting entity's cash flows and equity and preserve the results and relationships measured in each entity's functional currency under U.S. GAAP (830-10-10-2).","The functional currency is the currency of the primary economic environment in which the entity primarily generates and expends cash; it is a matter of fact requiring management judgment weighing cash flow, sales price, sales market, expense, financing, and intra-entity indicators (830-10-45-2, 45-6, 830-10-55-5).","A single entity with distinct and separable operations in different economic environments may have different functional currencies for each operation (830-10-45-5, 830-10-55-6).","Once determined, the functional currency is used consistently unless significant changes in economic facts clearly indicate a change; prior financial statements are never restated, and changes to/from the reporting currency follow 830-10-45-9 and 45-10 (830-10-45-7).","Financial statements of a foreign entity in a highly inflationary economy (cumulative inflation of approximately 100% or more over three years) are remeasured as if the functional currency were the reporting currency (830-10-45-11 through 45-13); when the economy ceases to be highly inflationary, reporting currency amounts are translated at the current rate to establish the new functional currency basis for nonmonetary items (830-10-45-15).","If books of record are not kept in the functional currency, remeasurement precedes translation: listed nonmonetary items (inventories at cost, PP&E and accumulated depreciation, prepaids, intangibles, goodwill, common stock, related cost of sales, depreciation, amortization) use historical rates, all other items use the current rate, and remeasurement gains and losses on nonfunctional-currency monetary items go to income (830-10-45-17 through 45-18)."],"categories":["Foreign currency","Subsequent measurement","Consolidation","Financial statement presentation"],"audience_level":"intermediate","student_note":"Exam questions almost always turn on identifying the functional currency first: get that wrong and every downstream answer (remeasurement gains in income vs. translation adjustments in OCI) is wrong. A common misunderstanding is conflating remeasurement (books not in functional currency; historical rates for nonmonetary items; gains/losses to earnings) with translation into the reporting currency (current rate; adjustment to OCI), and forgetting that a highly inflationary economy forces the reporting currency to be treated as the functional currency.","related_topics":["830-20","830-30","830-230","830-740","740-10","330-10"],"key_concepts":["functional currency","reporting currency","remeasurement","translation","highly inflationary economy","monetary and nonmonetary items","historical exchange rate","weighted average exchange 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by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:df02e5d4ef40d3d8bb040a06bdfbf9cc770e25e951246214ba8d785440a34582","downloaded_from":"2026-09-10T01:46:09.742Z","last_downloaded_at":"2026-09-10T01:46:30.713Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"830-20","topic":"830","title":"Foreign Currency Transactions","area":"Broad Transactions","paragraphs":34,"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).","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"],"categories":["Foreign currency","Subsequent measurement","Initial measurement","Disclosure"],"level":"intermediate","topic_title":"Foreign Currency Matters","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-20-00-1","para":"00-1","html":"
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
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n830-20-05-3 | Amended | Accounting Standards Update No. 2020-10 | 10/29/2020 |\n830-20-35…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8dbec581e3b3857b3e307dc545c58de28ccc5f49e924dd9ae5247671005e1e7a","downloaded_from":"2026-09-10T01:46:33.561Z","last_downloaded_at":"2026-09-10T01:46:33.561Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481735","source_sha256":"bf51b37ffeadfa9139756ec3bddc4552e428c9c6e68b678a914d955abd84d8ed"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2f649ac82aa64b600129ba82c536ed3e3cf7cbd9bc8c66a65293b2dbac1f6e40","downloaded_from":"2026-09-10T01:46:33.561Z","last_downloaded_at":"2026-09-10T01:46:33.561Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481735","source_sha256":"bf51b37ffeadfa9139756ec3bddc4552e428c9c6e68b678a914d955abd84d8ed"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19030419e8e0bfb434b5960b31d13d093d90ffde320d1b13b7f144402f54c94e","downloaded_from":"2026-09-10T01:46:33.561Z","last_downloaded_at":"2026-09-10T01:46:33.561Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481735","source_sha256":"bf51b37ffeadfa9139756ec3bddc4552e428c9c6e68b678a914d955abd84d8ed"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-20-05-1","para":"05-1","html":"
This Subtopic establishes standards of financial accounting and reporting for foreign currency transactions in financial statements of a reporting entity.
","snippet":"This Subtopic establishes standards of financial accounting and reporting for foreign currency transactions in financial statements of a reporting entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ee787f8e74b8e08b83695fee84b465a698b4a3bf2e8460ede9877a4c4962ac7b","downloaded_from":"2026-09-10T01:46:36.938Z","last_downloaded_at":"2026-09-10T01:46:36.938Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481705","source_sha256":"272c75dd295cba93f2003bc304321e6639f27188d39215c00e421f75246aceea"}},{"citation":"830-20-05-2","para":"05-2","html":"
Foreign currency transactions may produce receivables or payables that are fixed in terms of the amount 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 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.
","snippet":"Foreign currency transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. Examples include a sale denominated in Swiss francs, a Swiss fran…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f2440a6a113545004454616f576844595c55c55a2223386e15ef125e99981af","downloaded_from":"2026-09-10T01:46:36.938Z","last_downloaded_at":"2026-09-10T01:46:36.938Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481705","source_sha256":"272c75dd295cba93f2003bc304321e6639f27188d39215c00e421f75246aceea"}},{"citation":"830-20-05-3","para":"05-3","html":"
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.
","snippet":"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 pur…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3d99792b80cee1e6b19bc2a56daf0f2d7e000c3ce5454de3441b4064b4a6a63d","downloaded_from":"2026-09-10T01:46:36.938Z","last_downloaded_at":"2026-09-10T01:46:36.938Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481705","source_sha256":"272c75dd295cba93f2003bc304321e6639f27188d39215c00e421f75246aceea"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ac6ff540cafe6e0ec246386076bf72eeec5160377bf7a45d1cf6f79675874c43","downloaded_from":"2026-09-10T01:46:36.938Z","last_downloaded_at":"2026-09-10T01:46:36.938Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481705","source_sha256":"272c75dd295cba93f2003bc304321e6639f27188d39215c00e421f75246aceea"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:398f64d9f74dd99d1490b68e0846f01492a2950acb98760a7fe10319c30858fd","downloaded_from":"2026-09-10T01:46:36.938Z","last_downloaded_at":"2026-09-10T01:46:36.938Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481705","source_sha256":"272c75dd295cba93f2003bc304321e6639f27188d39215c00e421f75246aceea"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"830-20-15-1","para":"15-1","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:102164f1e58ce344e3a24d60da6762cead578de8ff2725e73505684b5b943a58","downloaded_from":"2026-09-10T01:46:40.791Z","last_downloaded_at":"2026-09-10T01:46:40.791Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481676","source_sha256":"5911b5a03f2f00d187fead23de650244d7f13b94aced18aceafa0b94c1239416"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93b9b84fe76bc16734f294baf057a50dee3768aa2e361a1ce6863aeb2a18e431","downloaded_from":"2026-09-10T01:46:40.791Z","last_downloaded_at":"2026-09-10T01:46:40.791Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481676","source_sha256":"5911b5a03f2f00d187fead23de650244d7f13b94aced18aceafa0b94c1239416"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"830-20-15-2","para":"15-2","html":"
The guidance in this Subtopic applies to all foreign currency transactions with the exception of the following:
  1. a
    Derivative instruments, for guidance see Topic 815.
","snippet":"The guidance in this Subtopic applies to all foreign currency transactions with the exception of the following:\n(a) Derivative instruments, for guidance see Topic 815.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93c9c1601e524078c132882243e0d670a6bf3ffff936b68fcf85c746e42c82b6","downloaded_from":"2026-09-10T01:46:40.791Z","last_downloaded_at":"2026-09-10T01:46:40.791Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481676","source_sha256":"5911b5a03f2f00d187fead23de650244d7f13b94aced18aceafa0b94c1239416"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:80613974bad1ca9350c296af4b7c34cd747b14f99c18aefc19b7c27e36eb0197","downloaded_from":"2026-09-10T01:46:40.791Z","last_downloaded_at":"2026-09-10T01:46:40.791Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481676","source_sha256":"5911b5a03f2f00d187fead23de650244d7f13b94aced18aceafa0b94c1239416"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02021522374bb26d9cd5c2f49f931292294df5d312a1686f3a1e8f4a5794094c","downloaded_from":"2026-09-10T01:46:40.791Z","last_downloaded_at":"2026-09-10T01:46:40.791Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481676","source_sha256":"5911b5a03f2f00d187fead23de650244d7f13b94aced18aceafa0b94c1239416"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-20-25-1","para":"25-1","html":"
At the date a foreign currency transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be recorded in the functional currency of the recording entity.
","snippet":"At the date a foreign currency transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be recorded in the functional currency of the recording entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:51ad8d940f70e4cdc1f852f8ed35de9532b0b49f1dc3f2382a75203a9ce6d0aa","downloaded_from":"2026-09-10T01:46:45.901Z","last_downloaded_at":"2026-09-10T01:46:45.901Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481617","source_sha256":"fcfea8068d5435d72cb1e3039e5d56c5286300a32f2a31f37e5f7ba6d997e500"}},{"citation":"830-20-25-2","para":"25-2","html":"
Paragraphs
830-10-55-3 through 55-7
provide guidance on the determination of a reporting entity's functional currency. Paragraph 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 into the reporting currency. That paragraph provides further guidance on remeasurement of books and records.
","snippet":"Paragraphs 830-10-55-3 through 55-7 provide guidance on the determination of a reporting entity's functional currency. Paragraph 830-10-45-17 states that if an entity's books of record are not maintained in its functiona…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:10bfc5419edcb141fb0ff7d777211138c6ce62bd8fad7b2bbb2db2904ca23cff","downloaded_from":"2026-09-10T01:46:45.901Z","last_downloaded_at":"2026-09-10T01:46:45.901Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481617","source_sha256":"fcfea8068d5435d72cb1e3039e5d56c5286300a32f2a31f37e5f7ba6d997e500"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70ce5d9d37ef0083903c9de683fcac02b45070ce4899c971d32a8edad38f17a1","downloaded_from":"2026-09-10T01:46:45.901Z","last_downloaded_at":"2026-09-10T01:46:45.901Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481617","source_sha256":"fcfea8068d5435d72cb1e3039e5d56c5286300a32f2a31f37e5f7ba6d997e500"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2a1bd862060aff1645c28af1aaaab25d4e53820330a8d8fe26105affe9f01d0b","downloaded_from":"2026-09-10T01:46:45.901Z","last_downloaded_at":"2026-09-10T01:46:45.901Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481617","source_sha256":"fcfea8068d5435d72cb1e3039e5d56c5286300a32f2a31f37e5f7ba6d997e500"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-20-30-1","para":"30-1","html":"
At the date a foreign currency transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be measured initially in the functional currency of the recording entity by use of the exchange rate in effect at that date.
","snippet":"At the date a foreign currency transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction shall be measured initially in the functional currency of the recording entity…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d80aebcd3513f6652e0d9c903067c5db27e50c673239dfdbec611d5779845a6","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6105a8ffe9992b83566113b7570a10b57cd59732e00b30abfbaede151efda7c1","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}},{"block":null,"heading":"Exchange Rates","paragraphs":[{"citation":"830-20-30-2","para":"30-2","html":"
If exchangeability between two currencies is temporarily lacking at the 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 shall be carefully considered.
","snippet":"If exchangeability between two currencies is temporarily lacking at the 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 t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4c9ad1d3e6c4ebaebbc302976f80caa1414d02f1ac022892b141d99ac12f476","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}},{"citation":"830-20-30-3","para":"30-3","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6843496e0bb138dc31709164e9a9c5747da213564713f3ec33b46d42c677f015","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}},{"citation":"830-20-30-4","para":"30-4","html":"
Paragraphs
830-10-55-10 through 55-11
discuss the use of averages or other methods of approximation.
","snippet":"Paragraphs 830-10-55-10 through 55-11 discuss the use of averages or other methods of approximation.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a54704a894b574f7de22cc4b277a3e8637c1ba07612e18841557a9c66b7540e","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8c7accd63ba735671c31a4a38efd42d44ed61442abf100fa1e728d4bdb60aa82","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a15cccdbc620bffa63332b96c49857444e672a7ae4449cbe56bd7130608f7d8","downloaded_from":"2026-09-10T01:46:49.634Z","last_downloaded_at":"2026-09-10T01:46:49.634Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482044","source_sha256":"00ea9eca4b40e1e520a17fe5d3d62e507dbde6fb984074c08b6f4f8f68037b1a"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Transaction Gains and Losses","paragraphs":[{"citation":"830-20-35-1","para":"35-1","html":"
A change in exchange rates between the functional currency 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 that generally shall be included in determining net income for the period in which the exchange rate changes.
","snippet":"A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a6f4e9889f8afe18fa668de308cc91dc4b457c4e8a845d7085542a07a08f2d70","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-2","para":"35-2","html":"
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
provide more information about exchange rates.
","snippet":"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 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19502648dc9fa67c0507f1f827d808ef46f2a5a2f349e008ef906fbd10a54626","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-3","para":"35-3","html":"
Gains and losses on the following foreign currency transactions shall not be included in determining net income but shall be reported in the same manner as translation adjustments:
  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.
","snippet":"Gains and losses on the following foreign currency transactions shall not be included in determining net income but shall be reported in the same manner as translation adjustments:\n(a) Foreign currency transactions that …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce7fd1018f5b3f38d36e57a6d9296e3e3966d9e5b5d04af5f14d09385dc874da","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-4","para":"35-4","html":"
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.
","snippet":"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 ad…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4bac6d20dd9aa2f47f0d15c735124db5dc8cc00fec0629e7a229e8dd068d1eba","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-5","para":"35-5","html":"
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.
","snippet":"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 paragrap…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab146c60b48e4aba7b722ceccb6edcc3c00aca3f1aa857985b921898f277ef61","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-6","para":"35-6","html":"
Paragraph 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.
","snippet":"Paragraph 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 comprehensiv…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:88e52b1b5ce19dbc08688213c728a61424a47c15ad22c5c9b4bbeb815cd32d8a","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-7","para":"35-7","html":"
Paragraph superseded by Accounting Standards Update No. 2016-13.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2016-13.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2115c52b65d1a9c5c695e24d62acae9ee6755c64ada0802111e5bd1da9fcdba5","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-7A","para":"35-7A","html":"
Paragraph 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. 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.
","snippet":"Paragraph 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 prese…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a56f584ea8742cbebed9949e94040c4641db80e99b4cb97aa4e6d99aa6d6ca7a","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"citation":"830-20-35-8","para":"35-8","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7b073caa80faa929ddfcb567a86fbb0a6b7fd2a1b3fe8317236161ba4ed39b19","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5934bc5df54a532c8806eb93df8f5e3c42586aef7e54b6c0c6b7ab1fe96a2458","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ee0cb6828813e7cea5d14b39f0d97e4f3938576ffd81d66ae1ff3b9afb36b5b","downloaded_from":"2026-09-10T01:46:52.717Z","last_downloaded_at":"2026-09-10T01:46:52.717Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482014","source_sha256":"02efb842bb58c527d92928ed17192c05fd9cefdbe7e29311817540418244c9c7"}},{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-20-40-1","para":"40-1","html":"
A transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later) realized upon settlement of a foreign currency transaction 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 and pertain to certain intra-entity transactions and to transactions that are designated as, and effective as, economic hedges of net investments.
","snippet":"A transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later) realized upon settlement of a foreign currency transaction generally shall be included…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:146ef155df4257618bfcfa46050f7ac428fb65700a7bfc463cf73337c5d4fd56","downloaded_from":"2026-09-10T01:46:56.233Z","last_downloaded_at":"2026-09-10T01:46:56.233Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481985","source_sha256":"7a0ce6b63e64fe32fa023865d80d8161fae7b243686315c5edc52b8c4ffdba30"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:91fcd7a0dcac9c60d387d3f278b55ec72415d68b1b2be8e0d85ad663c5452002","downloaded_from":"2026-09-10T01:46:56.233Z","last_downloaded_at":"2026-09-10T01:46:56.233Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481985","source_sha256":"7a0ce6b63e64fe32fa023865d80d8161fae7b243686315c5edc52b8c4ffdba30"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95a38f55225a9440fc1da9190f0663a77eba2c99a9f6b41ee9453a1e04226ea2","downloaded_from":"2026-09-10T01:46:56.233Z","last_downloaded_at":"2026-09-10T01:46:56.233Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481985","source_sha256":"7a0ce6b63e64fe32fa023865d80d8161fae7b243686315c5edc52b8c4ffdba30"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Income Statement Presentation","paragraphs":[{"citation":"830-20-45-1","para":"45-1","html":"
The aggregate transaction gain or loss 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).
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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.
","snippet":"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 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b6ed1ee7a03495afe38e9b50a879be02725b34207961fb70bd53d738985c41e","downloaded_from":"2026-09-10T01:46:58.403Z","last_downloaded_at":"2026-09-10T01:46:58.403Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481956","source_sha256":"6c91ae7793f9838353018fc72e74bd1c92b9b5b05e0360c1139755248a3f3004"}},{"citation":"830-20-45-3","para":"45-3","html":"
When the reporting currency (not the 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 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 for further guidance.
","snippet":"When the reporting currency (not the 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 will result in a transa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d8ca3b2170949de54b544f11b1c618c9de36c551b5058b9506d1c802178de908","downloaded_from":"2026-09-10T01:46:58.403Z","last_downloaded_at":"2026-09-10T01:46:58.403Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481956","source_sha256":"6c91ae7793f9838353018fc72e74bd1c92b9b5b05e0360c1139755248a3f3004"}},{"citation":"830-20-45-4","para":"45-4","html":"
Paragraph superseded by Accounting Standards Update No. 2015-01.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2015-01.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c313b7c019021be23e6bc24c25cc43abe456f3b0cad116f5368c9f77d763c0fb","downloaded_from":"2026-09-10T01:46:58.403Z","last_downloaded_at":"2026-09-10T01:46:58.403Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481956","source_sha256":"6c91ae7793f9838353018fc72e74bd1c92b9b5b05e0360c1139755248a3f3004"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7558d3e70a359e466db199c5732ac08407b199a81b51ed461036d5d5fb008a5d","downloaded_from":"2026-09-10T01:46:58.403Z","last_downloaded_at":"2026-09-10T01:46:58.403Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481956","source_sha256":"6c91ae7793f9838353018fc72e74bd1c92b9b5b05e0360c1139755248a3f3004"}},{"block":null,"heading":"Reporting Other Comprehensive Income","paragraphs":[{"citation":"830-20-45-5","para":"45-5","html":"
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.
","snippet":"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 entr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de44941606d27856b23fddc8e944ed975a511bd5dd86f7707e62f8077459fa9a","downloaded_from":"2026-09-10T01:46:58.403Z","last_downloaded_at":"2026-09-10T01:46:58.403Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481956","source_sha256":"6c91ae7793f9838353018fc72e74bd1c92b9b5b05e0360c1139755248a3f3004"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8412482054164f7406245770117d06007486f10dc4bc273735da32bb76660f0","downloaded_from":"2026-09-10T01:46:58.403Z","last_downloaded_at":"2026-09-10T01:46:58.403Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481956","source_sha256":"6c91ae7793f9838353018fc72e74bd1c92b9b5b05e0360c1139755248a3f3004"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec255cc6c84b46c21a68062997d1021c0ccf397365930aa54d841dd3b385fb49","downloaded_from":"2026-09-10T01:46:58.403Z","last_downloaded_at":"2026-09-10T01:46:58.403Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481956","source_sha256":"6c91ae7793f9838353018fc72e74bd1c92b9b5b05e0360c1139755248a3f3004"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Aggregate Transaction Gain or Loss","paragraphs":[{"citation":"830-20-50-1","para":"50-1","html":"
If not presented in the financial statements as discussed in paragraph 830-20-45-1, the aggregate transaction gain or loss 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:
220-40-65-1If not presented in the financial statements as discussed in paragraph 830-20-45-1, the aggregate transaction gain or loss 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
for additional disclosure requirements.
","snippet":"If not presented in the financial statements as discussed in paragraph 830-20-45-1, the aggregate transaction gain or loss included in determining net income for the period shall be disclosed in notes to financial statem…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ca69ca97785361ae0637bbd2d3e9697d768cabf48d6106c3e79dc57e5e5947b","downloaded_from":"2026-09-10T01:47:02.159Z","last_downloaded_at":"2026-09-10T01:47:02.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481926","source_sha256":"cb00fb3b74aaefd1f551d0e64153d94f53552b0c287e3f38fe9af3724988d0db"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6706c7dd9cf49175d019298e9f39c7bdd527253f36246d9b1b962172675b9d2f","downloaded_from":"2026-09-10T01:47:02.159Z","last_downloaded_at":"2026-09-10T01:47:02.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481926","source_sha256":"cb00fb3b74aaefd1f551d0e64153d94f53552b0c287e3f38fe9af3724988d0db"}},{"block":null,"heading":"Subsequent Rate Changes","paragraphs":[{"citation":"830-20-50-2","para":"50-2","html":"
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, 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.
","snippet":"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, if significant, may be necessary. I…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d06db085d8ab49f386abe2ea745cbda2c0e0202be5131f8693b43f2f643c7dc0","downloaded_from":"2026-09-10T01:47:02.159Z","last_downloaded_at":"2026-09-10T01:47:02.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481926","source_sha256":"cb00fb3b74aaefd1f551d0e64153d94f53552b0c287e3f38fe9af3724988d0db"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6793d40819362c093011b9cf40263cff66dafabb02cd1c805ebac4ee575709e0","downloaded_from":"2026-09-10T01:47:02.159Z","last_downloaded_at":"2026-09-10T01:47:02.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481926","source_sha256":"cb00fb3b74aaefd1f551d0e64153d94f53552b0c287e3f38fe9af3724988d0db"}},{"block":null,"heading":"Effects of Rate Changes on Results of Operations","paragraphs":[{"citation":"830-20-50-3","para":"50-3","html":"
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.
","snippet":"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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c4c81385c336e2312cf6d299146fa2fe6526ddba61fa0a26802771541b0643d","downloaded_from":"2026-09-10T01:47:02.159Z","last_downloaded_at":"2026-09-10T01:47:02.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481926","source_sha256":"cb00fb3b74aaefd1f551d0e64153d94f53552b0c287e3f38fe9af3724988d0db"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c0225098733e19fbf596ae25b75a40e872cdb6f661b8778da78f8ec4ed46c0e7","downloaded_from":"2026-09-10T01:47:02.159Z","last_downloaded_at":"2026-09-10T01:47:02.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481926","source_sha256":"cb00fb3b74aaefd1f551d0e64153d94f53552b0c287e3f38fe9af3724988d0db"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9893f4e13ec796ce631300dd6afd84344c014a867e5e8b2daac8b24e665378d","downloaded_from":"2026-09-10T01:47:02.159Z","last_downloaded_at":"2026-09-10T01:47:02.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481926","source_sha256":"cb00fb3b74aaefd1f551d0e64153d94f53552b0c287e3f38fe9af3724988d0db"}},{"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"}}],"enrichment":{"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"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b5c5217f066126c6dc99f1072e16369ba199195304d3ee8d65ca18708cd4b5d5","downloaded_from":"2026-09-10T01:46:33.561Z","last_downloaded_at":"2026-09-10T01:47:07.110Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"830-10","title":"Overall","topic_title":"Foreign Currency Matters","score":0.7994,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a5992d9fc4f7750169eb429e66285609ec9d46676436465fa24cd07ac6190602","downloaded_from":"2026-09-10T01:46:09.742Z","last_downloaded_at":"2026-09-10T01:46:30.713Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"830-30","title":"Translation of Financial Statements","topic_title":"Foreign Currency Matters","score":0.7893,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd47990619c0b969c0b88623b3ae59a6edf20a0ef89d187c6998170917e9b960","downloaded_from":"2026-09-10T01:47:09.290Z","last_downloaded_at":"2026-09-10T01:47:45.334Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"740-830","title":"Foreign Currency Matters","topic_title":"Income Taxes","score":0.788,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f34ab26caa0a008a511d9131d2ff068b884fc72cc3136092e6e383913d7ea32","downloaded_from":"2026-09-10T01:18:38.556Z","last_downloaded_at":"2026-09-10T01:19:00.224Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"830-946","title":"Financial Services—Investment Companies","topic_title":"Foreign Currency Matters","score":0.7775,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c401de37d4c07439e3c992505243a6b9dc38d0e8c565555f8e5805a67801c18","downloaded_from":"2026-09-10T01:47:48.746Z","last_downloaded_at":"2026-09-10T01:48:09.816Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"815-35","title":"Net Investment Hedges","topic_title":"Derivatives and Hedging","score":0.7607,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f47187f2e0bc646556e8d533c2b27f0432b26890f5a9d3d2436b3a214ecc7987","downloaded_from":"2026-09-10T01:38:18.840Z","last_downloaded_at":"2026-09-10T01:38:43.011Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"320-10","title":"Overall","topic_title":"Investments—Debt Securities","score":0.745,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a05930916ea27ad912517cda2a932b9351325f2c775fb7565f084a0d61069c18","downloaded_from":"2026-09-09T23:34:37.849Z","last_downloaded_at":"2026-09-09T23:35:28.596Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"830-10","title":"Overall","topic_title":"Foreign Currency Matters","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:097e6562c88e6edb7c69bb75d96717a8f447bbe7d4649414721cd964fc02f399","downloaded_from":"2026-09-10T01:46:09.742Z","last_downloaded_at":"2026-09-10T01:46:30.713Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"830-30","title":"Translation of Financial Statements","topic_title":"Foreign Currency Matters","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3e83986e68bdcaeb8bf1cce4677a52b3f8a98a59e39d6c3dae3a102eab3f4e1","downloaded_from":"2026-09-10T01:47:09.290Z","last_downloaded_at":"2026-09-10T01:47:45.334Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4ef6da561cc84b28116e53932db437ba3b9c405796c8794ad3fec18b48a02b7","downloaded_from":"2026-09-10T01:46:33.561Z","last_downloaded_at":"2026-09-10T01:47:07.110Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"830-30","topic":"830","title":"Translation of Financial Statements","area":"Broad Transactions","paragraphs":38,"summary":"ASC 830-30 governs how a reporting entity translates the financial statements of a foreign entity whose functional currency is not the reporting currency, when those statements are consolidated, combined, or accounted for under the equity method. Assets and liabilities are translated at the balance sheet date rate and revenues, expenses, gains, and losses at the rates on the dates recognized; the resulting translation adjustments go to other comprehensive income (accumulated as the cumulative translation adjustment, or CTA) rather than net income. The CTA is released into earnings only upon sale or complete or substantially complete liquidation of the investment in the foreign entity.","concepts":["cumulative translation adjustment","current rate method","functional currency","reporting currency","other comprehensive income","sale or substantially complete liquidation of a foreign entity","net investment hedge","intra-entity profit elimination"],"categories":["Foreign currency","Presentation","Disclosure","Consolidation"],"level":"intermediate","topic_title":"Foreign Currency Matters","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-30-00-1","para":"00-1","html":"
The following table identifies changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Conduit Debt Security Added Maintenance Update 2014-20 (PDF) 09/29/2014
Nonpublic Entity (Def. 1) Amended Maintenance Update 2014-20 (PDF) 09/29/2014
830-30-40-1 through 40-3
 Amended Accounting Standards Update No. 2013-05 03/04/2013
830-30-40-1A Added Accounting Standards Update No. 2013-05 03/04/2013
830-30-40-4 Amended Maintenance Update 2017-19 (PDF) 11/15/2017
830-30-45-1 Amended Accounting Standards Update No. 2015-01 01/09/2015
830-30-45-20 Amended Maintenance Update 2018-12 (PDF) 09/10/2018
830-30-45-21 Amended Accounting Standards Update No. 2015-01 01/09/2015
830-30-45-22 Superseded Accounting Standards Update No. 2015-01 01/09/2015
830-30-65-1 Added Accounting Standards Update No. 2013-05 03/04/2013
","snippet":"The following table identifies changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nConduit Debt Security | Added | Maintenance Update 2014-20 | 09/29/2014 |\nNonpublic Entity (…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:875a1380cd9d6a8cd6860727980b5c4d278295a47935fc669f59753faf8494d0","downloaded_from":"2026-09-10T01:47:09.290Z","last_downloaded_at":"2026-09-10T01:47:09.290Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481841","source_sha256":"681f43fb9cfa32fa443f8f5cb285639e01ee6c366f89ae5366a9a6058cd1b25a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a2788a2c5c5795f5061a43907f4c53664c00f946fb05624ea7183663e33d7135","downloaded_from":"2026-09-10T01:47:09.290Z","last_downloaded_at":"2026-09-10T01:47:09.290Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481841","source_sha256":"681f43fb9cfa32fa443f8f5cb285639e01ee6c366f89ae5366a9a6058cd1b25a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7947f54ba79041635b2a470d7d77c77bb84181a82c481a79cb68bf5b2d4e1d66","downloaded_from":"2026-09-10T01:47:09.290Z","last_downloaded_at":"2026-09-10T01:47:09.290Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481841","source_sha256":"681f43fb9cfa32fa443f8f5cb285639e01ee6c366f89ae5366a9a6058cd1b25a"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-30-05-1","para":"05-1","html":"
This Subtopic provides guidance for translating foreign currency statements that are incorporated in the financial statements of a reporting entity by consolidation, combination, or the equity method of accounting.
","snippet":"This Subtopic provides guidance for translating foreign currency statements that are incorporated in the financial statements of a reporting entity by consolidation, combination, or the equity method of accounting.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:428c8c6da5318b4b97a7ad681230f29a67046409528f764fc3eea03026d15a10","downloaded_from":"2026-09-10T01:47:11.666Z","last_downloaded_at":"2026-09-10T01:47:11.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481811","source_sha256":"62d91b75e4bac17f3063d42fe9ebdf45e8323a0cf071e0a00d17fa65db2cbcb6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ad6ae7a740f286980efb99b67fa00eeb34ab28513bacfd11a5bc7387da4f426","downloaded_from":"2026-09-10T01:47:11.666Z","last_downloaded_at":"2026-09-10T01:47:11.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481811","source_sha256":"62d91b75e4bac17f3063d42fe9ebdf45e8323a0cf071e0a00d17fa65db2cbcb6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7b0fc49fcd55e8d5d7010fb58f10aeb6f27a7b7aa4d16d2e1d35e9a54b7c8c8d","downloaded_from":"2026-09-10T01:47:11.666Z","last_downloaded_at":"2026-09-10T01:47:11.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481811","source_sha256":"62d91b75e4bac17f3063d42fe9ebdf45e8323a0cf071e0a00d17fa65db2cbcb6"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"830-30-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 830-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 830-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e99718192557b6c7fe4783e191f29a64fe4e7547d56015c505c0de498fa875d","downloaded_from":"2026-09-10T01:47:13.486Z","last_downloaded_at":"2026-09-10T01:47:13.486Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481781","source_sha256":"a3e12442f7626d485f008b754f0068c7bf85483ebbfc2cfe6674fbb092760fe5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1f61d9b4d4a390f906988a3f10db42022351bfb9120186430687a88bdf0600b","downloaded_from":"2026-09-10T01:47:13.486Z","last_downloaded_at":"2026-09-10T01:47:13.486Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481781","source_sha256":"a3e12442f7626d485f008b754f0068c7bf85483ebbfc2cfe6674fbb092760fe5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e8507e1cfeb381419c7e164fe4273ee9de6577703d43242c7d5d3b136d574156","downloaded_from":"2026-09-10T01:47:13.486Z","last_downloaded_at":"2026-09-10T01:47:13.486Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481781","source_sha256":"a3e12442f7626d485f008b754f0068c7bf85483ebbfc2cfe6674fbb092760fe5"}},{"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:
  1. a
    Removed from the separate component of equity
  2. 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:
  1. 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)
  2. 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
    805-10-25-9 through 25-10
    ).
","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
323-10-35-37 through 35-39
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
810-10-45-23 through 45-24
.
","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"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-30-45-1","para":"45-1","html":"
The guidance in this Section discusses how a reporting entity translates foreign currency statements and analyzes changes in the cumulative translation adjustment. It also addresses two related reporting matters. The guidance is organized as follows:
  1. a
    Translation of foreign currency statements
  2. b
    Analysis of changes in cumulative translation adjustment
  3. c
    Reporting other comprehensive income—income tax consequences of rate changes
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2015-01.
","snippet":"The guidance in this Section discusses how a reporting entity translates foreign currency statements and analyzes changes in the cumulative translation adjustment. It also addresses two related reporting matters. The gui…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:682bd95ece424b23f6440e74b113c6349dc8a8f873acfc0bfb0c638925601222","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f3bce8ba6d06d6b29c10a6f27d06d30800227b0a3c021ab699bfff329d066d9","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"block":null,"heading":"Translation of Foreign Currency Statements","paragraphs":[{"citation":"830-30-45-2","para":"45-2","html":"
This guidance on translation of foreign currency statements is organized as follows:
  1. a
    Translation using current exchange rate
  2. b
    Elimination of intra-entity profits
  3. c
    Translation after a business combination
  4. d
    Reporting translation adjustments
  5. e
    Subsequent change in exchange rate
  6. f
    Cumulative translation adjustments attributable to noncontrolling interests.
","snippet":"This guidance on translation of foreign currency statements is organized as follows:\n(a) Translation using current exchange rate\n(b) Elimination of intra-entity profits\n(c) Translation after a business combination\n(d) Re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:312b97dae566f35de2b3165409a422cdcabdc759b4c17fbe82fa9f5f5f79095c","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-3","para":"45-3","html":"
All elements of financial statements shall be translated by using a current exchange rate as follows:
  1. a
    For assets and liabilities, the exchange rate at the balance sheet date shall be used.
  2. b
    For revenues, expenses, gains, and losses, the exchange rate at the dates on which those elements are recognized shall be used.
This guidance also applies to accounting allocations (for example, depreciation, cost of sales, and amortization of deferred revenues and expenses) and requires translation at the current exchange rates applicable to the dates those allocations are included in revenues and expenses (that is, not the rates on the dates the related items originated).
","snippet":"All elements of financial statements shall be translated by using a current exchange rate as follows:\n(a) For assets and liabilities, the exchange rate at the balance sheet date shall be used.\n(b) For revenues, expenses,…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb3fd0dc7d89afe7c2ba175491f467516bfb4f3493fe69cbbbed9221714cc6c1","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-4","para":"45-4","html":"
For purposes of translation of financial statements referred to in this Subtopic, the current exchange rate is the rate as of the end of the period covered by the financial statements or as of the dates of recognition in those statements in the case of revenues, expenses, gains, and losses.
","snippet":"For purposes of translation of financial statements referred to in this Subtopic, the current exchange rate is the rate as of the end of the period covered by the financial statements or as of the dates of recognition in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3493433825a6aea724b9cafb6d579d9ab6acf2b86ead0a2d53d4c21eb274bfc6","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-5","para":"45-5","html":"
Paragraphs
830-10-55-10 through 55-11
address the use of averages or other methods of approximation.
","snippet":"Paragraphs 830-10-55-10 through 55-11 address the use of averages or other methods of approximation.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b20754a0abb9849a1d0ba4f4f5a7eddb5f141b5ded78bebdc87022fb75c63516","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-6","para":"45-6","html":"
In the absence of unusual circumstances, the exchange rate applicable to conversion of a currency for purposes of dividend remittances shall be used to translate foreign currency statements.
","snippet":"In the absence of unusual circumstances, the exchange rate applicable to conversion of a currency for purposes of dividend remittances shall be used to translate foreign currency statements.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f7db0f72ba6ba7fa25c95e8e0dc211eff208ee9974f882b15045455a7c8c994e","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-7","para":"45-7","html":"
If unsettled intra-entity transactions are subject to and translated using preference or penalty rates, translation of foreign currency statements at the rate applicable to dividend remittances may cause a difference between intra-entity receivables and payables. Until that difference is eliminated by settlement of the intra-entity transaction, the difference shall be treated as a receivable or payable in the reporting entity's financial statements.
","snippet":"If unsettled intra-entity transactions are subject to and translated using preference or penalty rates, translation of foreign currency statements at the rate applicable to dividend remittances may cause a difference bet…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ddd8afbe109518bdd1d2d1d4b550ebd684377b38cbc9fd3ccf82f4a74e2526a","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-8","para":"45-8","html":"
If a foreign entity whose balance sheet date differs from that of the reporting entity is consolidated or combined with or accounted for by the equity method in the financial statements of the reporting entity, the current rate is the rate in effect at the foreign entity's balance sheet date for purposes of applying the requirements of this Subtopic to that foreign entity.
","snippet":"If a foreign entity whose balance sheet date differs from that of the reporting entity is consolidated or combined with or accounted for by the equity method in the financial statements of the reporting entity, the curre…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4faa98d6806195eba42862cbba405f8284e3c6ca1329817549e5dfed3468b24","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-9","para":"45-9","html":"
If exchangeability between two currencies is temporarily lacking at the 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 shall be carefully considered. Example 1 (see paragraph 830-30-55-1) illustrates the application of this paragraph.
","snippet":"If exchangeability between two currencies is temporarily lacking at the 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 t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff21f8038fa3c321a8c3bd5a7b0d68f06905cb4a4a5c88e9d99a50d35f4c76ac","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-10","para":"45-10","html":"
The elimination of intra-entity profits that are attributable to sales or other transfers between entities that are consolidated, combined, or accounted for by the equity method in the reporting entity's financial statements shall be based on the exchange rates at the dates of the sales or transfers. The use of reasonable approximations or averages is permitted.
","snippet":"The elimination of intra-entity profits that are attributable to sales or other transfers between entities that are consolidated, combined, or accounted for by the equity method in the reporting entity's financial statem…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4975d7412ffd5abe9f40ebbb68cfdaddd6a70841e167064ea06befff7928dcb","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-11","para":"45-11","html":"
After a business combination, the amount assigned at the acquisition date to the assets acquired and the liabilities assumed (including goodwill or the gain recognized for a bargain purchase in accordance with Subtopic 805-30) shall be translated in conformity with the requirements of this Subtopic.
","snippet":"After a business combination, the amount assigned at the acquisition date to the assets acquired and the liabilities assumed (including goodwill or the gain recognized for a bargain purchase in accordance with Subtopic 8…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f95187cfbb6c7bdb06aa0a099dda538d80677216e36d2fe4addd5669010576ea","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-12","para":"45-12","html":"
If an entity's functional currency is a foreign currency, translation adjustments result from the process of translating that entity's financial statements into the reporting currency. Translation adjustments shall not be included in determining net income but shall be reported in other comprehensive income.
","snippet":"If an entity's functional currency is a foreign currency, translation adjustments result from the process of translating that entity's financial statements into the reporting currency. Translation adjustments shall not b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07d8a8ea3e844b5ef1da2ad9ac9eb099df419164419c9a8dff547b4b9a6a6fcb","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-13","para":"45-13","html":"
An entity that has committed to a plan that will cause the cumulative translation adjustment for an equity method investment or a consolidated investment in a foreign entity to be reclassified to earnings shall include the cumulative translation adjustment as part of the carrying amount of the investment when evaluating that investment for impairment. The scope of this guidance includes an investment in a foreign entity that is either consolidated by the reporting entity or accounted for by the reporting entity using the equity method. This guidance does not address either of the following:
  1. a
    Whether the cumulative translation adjustment shall be included in the carrying amount of the investment when assessing impairment for an investment in a foreign entity when the reporting entity does not plan to dispose of the investment (that is, the investment or related consolidated assets are held for use)
  2. b
    Planned transactions involving foreign investments that, when consummated, will not cause a reclassification of some amount of the cumulative translation adjustment.
","snippet":"An entity that has committed to a plan that will cause the cumulative translation adjustment for an equity method investment or a consolidated investment in a foreign entity to be reclassified to earnings shall include t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5627f6705b22a9b63491f87a24225484b7819a56859ba8c5edea70f89bf62858","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-14","para":"45-14","html":"
In both cases, paragraph 830-30-40-1 is clear that no basis exists to include the cumulative translation adjustment in an impairment assessment if that assessment does not contemplate a planned sale or liquidation that will cause reclassification of some amount of the cumulative translation adjustment. (If the reclassification will be a partial amount of the cumulative translation adjustment, this guidance contemplates only the cumulative translation adjustment amount subject to reclassification pursuant to paragraphs
830-30-40-2 through 40-4
.)
","snippet":"In both cases, paragraph 830-30-40-1 is clear that no basis exists to include the cumulative translation adjustment in an impairment assessment if that assessment does not contemplate a planned sale or liquidation that w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:384137f5b812521da8ed7bc20b9021ed176671a1855725ee888eee595a6dc2b3","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-15","para":"45-15","html":"
An entity shall include the portion of the cumulative translation adjustment that represents a gain or loss from an effective hedge of the net investment in a foreign operation as part of the carrying amount of the investment when evaluating that investment for impairment.
","snippet":"An entity shall include the portion of the cumulative translation adjustment that represents a gain or loss from an effective hedge of the net investment in a foreign operation as part of the carrying amount of the inves…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9b989891fe1d1739506b8e2f1aca6e8e03aeff394a480c9db4f158ab90670cb8","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-16","para":"45-16","html":"
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 or after the date of the foreign currency statements of a foreign entity if they are consolidated, combined, or accounted for by the equity method in the financial statements of the reporting entity.
","snippet":"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 or after the date of the foreign currency statements of a foreig…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ed3f0bb5fc92c393ef23f99ca2f82542d0157783039603e5f358a7e0a6e6a7d","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-17","para":"45-17","html":"
Accumulated translation adjustments attributable to noncontrolling interests shall be allocated to and reported as part of the noncontrolling interest in the consolidated reporting entity.
","snippet":"Accumulated translation adjustments attributable to noncontrolling interests shall be allocated to and reported as part of the noncontrolling interest in the consolidated reporting entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f82c6ffd5fea5a07d6d7068295d1d9986b98ad378535918423b966e27b91d592","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:133f6bd3e28708a5061cd37b61a1dd231f2f1cf07edf45020bb1befcd1fa2f7a","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"block":null,"heading":"Analysis of Changes in Cumulative Translation Adjustment","paragraphs":[{"citation":"830-30-45-18","para":"45-18","html":"
An analysis of the changes during the period in the accumulated amount of translation adjustments reported in equity shall be provided in any of the following ways:
  1. a
    In a separate financial statement
  2. b
    In notes to financial statements
  3. c
    As part of a statement of changes in equity.
","snippet":"An analysis of the changes during the period in the accumulated amount of translation adjustments reported in equity shall be provided in any of the following ways:\n(a) In a separate financial statement\n(b) In notes to f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a68e33ed222719bc64a77956fe49df121b313c29ca2c0b6b57a12cc9ff93d6ce","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-19","para":"45-19","html":"
This accumulated amount in equity might be titled Equity Adjustment from Foreign Currency Translation or given a similar title.
","snippet":"This accumulated amount in equity might be titled Equity Adjustment from Foreign Currency Translation or given a similar title.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc795f299cfc58163127e8f777f99e216d942b000a3f12fabe6453d2e0608229","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-20","para":"45-20","html":"
At a minimum, the analysis shall disclose all of the following (see paragraph 830-30-50-1):
  1. a
    Beginning and ending amount of cumulative translation adjustments
  2. b
    The aggregate adjustment for the period resulting from translation adjustments (see paragraph 830-30-45-12) and gains and losses from certain hedges and intra-entity balances (see paragraph 830-20-35-3).
  3. c
    The amount of income taxes for the period allocated to translation adjustments (see paragraph 830-30-45-21)
  4. d
    The amounts transferred from cumulative translation adjustments and included in determining net income for the period as a result of the sale or complete or substantially complete liquidation of an investment in a foreign entity (see paragraph 830-30-40-1).
","snippet":"At a minimum, the analysis shall disclose all of the following (see paragraph 830-30-50-1):\n(a) Beginning and ending amount of cumulative translation adjustments\n(b) The aggregate adjustment for the period resulting from…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a00e22dae43f0983a9d807411732a8e882cf99ff56b9936dad8aa9a4267c471","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75e11e25a0a81c9c220af24729022f9d310a293b9fdfa4a7b70ed8178c808c1e","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"block":null,"heading":"Reporting Other Comprehensive Income—Income Tax Consequences of Rate Changes","paragraphs":[{"citation":"830-30-45-21","para":"45-21","html":"
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. All translation adjustments are reported in other comprehensive income. Any income taxes related to those translation adjustments shall be allocated to other comprehensive income. Translation adjustments are accounted for in the same way as temporary differences under the provisions of Subtopic 740-10. If under the requirements of Subtopic 740-30 deferred taxes are not provided for unremitted earnings of a subsidiary, in those instances, deferred taxes shall not be provided on translation adjustments.
","snippet":"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 entr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e60a52ceb3d59d483c1bb5d0085585e1524e8c83b28efb3ffd383ebb0f38364","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"citation":"830-30-45-22","para":"45-22","html":"
Paragraph superseded by Accounting Standards Update No. 2015-01.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2015-01.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ffd51d9966b1f4c726f93a7d36d71256f091ac5fcd8427f5b88430e3e7272656","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6d73ac86442e82c86e8477912ddebda2474df512da049cb24b9cf7bbed9bf4f6","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:13b17025a008cc663fdc1ca18be0b5539284b69a853072d56b5833d617261945","downloaded_from":"2026-09-10T01:47:22.947Z","last_downloaded_at":"2026-09-10T01:47:22.947Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481694","source_sha256":"39092eb90bcf18f55237943504bf5f07920bd3e7acd6ce655e9e22b3c0d5244f"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Analysis of Changes in Cumulative Translation Adjustment","paragraphs":[{"citation":"830-30-50-1","para":"50-1","html":"
If not provided in a separate financial statement or as part of a statement of changes in equity, an analysis of the changes during the period in the accumulated amount of translation adjustments reported in equity shall be provided in notes to financial statements. At a minimum, the analysis shall disclose the items enumerated in paragraph 830-30-45-20.
","snippet":"If not provided in a separate financial statement or as part of a statement of changes in equity, an analysis of the changes during the period in the accumulated amount of translation adjustments reported in equity shall…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9103041b609bb273f89a4c19dfbdb9618d683fe48cf91ff789592f61b9cf3fd1","downloaded_from":"2026-09-10T01:47:25.775Z","last_downloaded_at":"2026-09-10T01:47:25.775Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481674","source_sha256":"e4eccb5046b04a1c1b56bf8bd601ca4ce2047901ab0114c707424eecfc7d0d9b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2dc5b40afe21b71bc14991c46c6c7467cc009efa60f85bbde9b72ee80108a5a3","downloaded_from":"2026-09-10T01:47:25.775Z","last_downloaded_at":"2026-09-10T01:47:25.775Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481674","source_sha256":"e4eccb5046b04a1c1b56bf8bd601ca4ce2047901ab0114c707424eecfc7d0d9b"}},{"block":null,"heading":"Subsequent Rate Changes","paragraphs":[{"citation":"830-30-50-2","para":"50-2","html":"
Disclosure of a rate change that occurs after the date of the reporting entity's financial statements or after the date of the foreign currency statements of a foreign entity if they are consolidated, combined, or accounted for by the equity method in the financial statements of the reporting entity and its effects on unsettled balances pertaining to foreign currency transactions, if significant, may be necessary.
","snippet":"Disclosure of a rate change that occurs after the date of the reporting entity's financial statements or after the date of the foreign currency statements of a foreign entity if they are consolidated, combined, or accoun…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e52f91f9f316f991c6cb1cf57094c817af40d4150a0e5acd5f09b432d54b3b93","downloaded_from":"2026-09-10T01:47:25.775Z","last_downloaded_at":"2026-09-10T01:47:25.775Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481674","source_sha256":"e4eccb5046b04a1c1b56bf8bd601ca4ce2047901ab0114c707424eecfc7d0d9b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ecbd8c145a087d0fe04c0369321d00d6e5e2dbf254fe26d81569b5c80f18f300","downloaded_from":"2026-09-10T01:47:25.775Z","last_downloaded_at":"2026-09-10T01:47:25.775Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481674","source_sha256":"e4eccb5046b04a1c1b56bf8bd601ca4ce2047901ab0114c707424eecfc7d0d9b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7828a98b4daef8b468c47dec0969daaea4a8f203fd814846acf9e537a13bc939","downloaded_from":"2026-09-10T01:47:25.775Z","last_downloaded_at":"2026-09-10T01:47:25.775Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481674","source_sha256":"e4eccb5046b04a1c1b56bf8bd601ca4ce2047901ab0114c707424eecfc7d0d9b"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"830-30-55-1","para":"55-1","html":"
This Example illustrates the appropriate exchange rate to be used for translating financial statements when foreign exchange trading is temporarily suspended at year-end. The following are facts involving a reporting entity that had a significant subsidiary in Israel:
  1. a
    On December 29, 1988, the currency market was open and foreign currencies were traded. The exchange rate was FC 1.68 = USD 1.00.
  2. b
    On December 30, 1988, Israeli banks were officially open but foreign exchange trading was suspended until January 2, 1989. A devaluation to occur on January 2, 1989, was announced. Most businesses were closed for the holidays.
  3. c
    On December 31, 1988, banks were closed.
  4. d
    On January 1, 1989, banks were closed.
  5. e
    On January 2, 1989, foreign exchange transactions were executed but left unsettled until the following day when a new rate was to be established.
  6. f
    On January 3, 1989, a new exchange rate of FC 1.81 = USD 1.00 was established and was effective for transactions left unsettled the previous day.
Thus, exchangeability was temporarily lacking and the rate established as of January 3, 1989, the first subsequent rate, is the appropriate rate to use for translating the December 31, 1988, financial statements.
","snippet":"This Example illustrates the appropriate exchange rate to be used for translating financial statements when foreign exchange trading is temporarily suspended at year-end. The following are facts involving a reporting ent…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:85343930c57e9a22fc7eb1b6027984e303d137f7ff96cb6ad6ec438d713aa546","downloaded_from":"2026-09-10T01:47:27.447Z","last_downloaded_at":"2026-09-10T01:47:27.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481651","source_sha256":"47b2db76d820d42fddc807fcf6623731457d212a5bbd99bff60233ce907bc23b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ad893a252e9c18e3fb4dc1d66e7a49a3d3b460f7498284e789029ac874d60506","downloaded_from":"2026-09-10T01:47:27.447Z","last_downloaded_at":"2026-09-10T01:47:27.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481651","source_sha256":"47b2db76d820d42fddc807fcf6623731457d212a5bbd99bff60233ce907bc23b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5790e602598560892399b747f2dc64867d00b02fcd046e8272509b22efae5b0b","downloaded_from":"2026-09-10T01:47:27.447Z","last_downloaded_at":"2026-09-10T01:47:27.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481651","source_sha256":"47b2db76d820d42fddc807fcf6623731457d212a5bbd99bff60233ce907bc23b"}},{"number":"60","label":"60 Relationships","anchor":"60-relationships","is_sec":false,"groups":[{"block":null,"heading":"Comprehensive Income","paragraphs":[{"citation":"830-30-60-1","para":"60-1","html":"
For guidance on reporting foreign-currency-related components of comprehensive income, see Topic 220.
","snippet":"For guidance on reporting foreign-currency-related components of comprehensive income, see Topic 220.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc25e0a1f53972ed31a2ccca90940543284c961fa69b34261a565520ddb222d5","downloaded_from":"2026-09-10T01:47:30.341Z","last_downloaded_at":"2026-09-10T01:47:30.341Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481622","source_sha256":"37476448b27ddaa8f506b528e16ced6206da1eb1e6caa7284b2042a10409f6fb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9bc5e7da44552cc2f03648a8187470319321a23b8bdef668ed82f61bdde55879","downloaded_from":"2026-09-10T01:47:30.341Z","last_downloaded_at":"2026-09-10T01:47:30.341Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481622","source_sha256":"37476448b27ddaa8f506b528e16ced6206da1eb1e6caa7284b2042a10409f6fb"}},{"block":null,"heading":"Income Taxes","paragraphs":[{"citation":"830-30-60-2","para":"60-2","html":"
For guidance on whether deferred taxes shall be provided for translation adjustments, see Topic 740.
","snippet":"For guidance on whether deferred taxes shall be provided for translation adjustments, see Topic 740.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3aaeebee46d71205d8eab8dd98a3a5290c70adfd0aaf45588f6b22c5e6db6e4","downloaded_from":"2026-09-10T01:47:30.341Z","last_downloaded_at":"2026-09-10T01:47:30.341Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481622","source_sha256":"37476448b27ddaa8f506b528e16ced6206da1eb1e6caa7284b2042a10409f6fb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:69abc3caf9ceb13729d944a3ceedc56a1bb5eae398d2e99cc388a3929c7262ef","downloaded_from":"2026-09-10T01:47:30.341Z","last_downloaded_at":"2026-09-10T01:47:30.341Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481622","source_sha256":"37476448b27ddaa8f506b528e16ced6206da1eb1e6caa7284b2042a10409f6fb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c63bfb0eb0e35dd70b66e0fea9e185c8e507fbc574bfbb544cf5a7430832fa8f","downloaded_from":"2026-09-10T01:47:30.341Z","last_downloaded_at":"2026-09-10T01:47:30.341Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481622","source_sha256":"37476448b27ddaa8f506b528e16ced6206da1eb1e6caa7284b2042a10409f6fb"}},{"number":"65","label":"65 Transition and Open Effective Date Information","anchor":"65-transition-and-open-effective-date-information","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-30-65-1","para":"65-1","html":"
Paragraph superseded on 07/08/2016 after the end of the transition period stated in Accounting Standards Update No. 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.
","snippet":"Paragraph superseded on 07/08/2016 after the end of the transition period stated in Accounting Standards Update No. 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjust…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:350cc613d7807bdc7c035a0f27b26b0d52e4f2d94fe62160c7c214f4550bb3a8","downloaded_from":"2026-09-10T01:47:32.925Z","last_downloaded_at":"2026-09-10T01:47:32.925Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482042","source_sha256":"3b1bbfc5656a1ae19e60869d8cea051d638e36ae2148e121dc891c343ba9ee07"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:43ad7e052f109ea44a443ad13c606a4747fe8da6842943b26c74907c063e6fda","downloaded_from":"2026-09-10T01:47:32.925Z","last_downloaded_at":"2026-09-10T01:47:32.925Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482042","source_sha256":"3b1bbfc5656a1ae19e60869d8cea051d638e36ae2148e121dc891c343ba9ee07"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d91a548049c17930ce94d673297fb3b5308146692efea6983cbc0d904917a26","downloaded_from":"2026-09-10T01:47:32.925Z","last_downloaded_at":"2026-09-10T01:47:32.925Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482042","source_sha256":"3b1bbfc5656a1ae19e60869d8cea051d638e36ae2148e121dc891c343ba9ee07"}},{"number":"S00","label":"SEC 00 Status","anchor":"sec-00-status","is_sec":true,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-30-S00-1","para":"S00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
830-30-S99-1AddedAccounting Standards Update No. 2010-1905/11/2010
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n830-30-S99-1 | Added | Accounting Standards Update No. 2010-19 | 05/11/2010 |","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7910235ca32f9c77c950704e77872ffe6fa189d14d2cd6e65a92377e93c988d6","downloaded_from":"2026-09-10T01:47:38.445Z","last_downloaded_at":"2026-09-10T01:47:38.445Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479476","source_sha256":"7edb4395d20fe1f22152fd2a731eca8ae2757c0e323f12583c943d37f303ad7c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:220167279e96ea47e669e808d03437db86b86b148b3581ac53fab9225ffb007e","downloaded_from":"2026-09-10T01:47:38.445Z","last_downloaded_at":"2026-09-10T01:47:38.445Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479476","source_sha256":"7edb4395d20fe1f22152fd2a731eca8ae2757c0e323f12583c943d37f303ad7c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed1b26292166bc1a313a3a1b93319b74c98297fd1efc1d824a2c28e0ce5e202e","downloaded_from":"2026-09-10T01:47:38.445Z","last_downloaded_at":"2026-09-10T01:47:38.445Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479476","source_sha256":"7edb4395d20fe1f22152fd2a731eca8ae2757c0e323f12583c943d37f303ad7c"}},{"number":"S99","label":"SEC 99 SEC Materials","anchor":"sec-99-sec-materials","is_sec":true,"groups":[{"block":null,"heading":"SEC Staff Guidance","paragraphs":[{"citation":"830-30-S99-1","para":"S99-1","html":"
This SEC staff announcement provides the SEC staff's views on Foreign Currency Issues.
","snippet":"This SEC staff announcement provides the SEC staff's views on Foreign Currency Issues.\nThe SEC staff has received a number of inquiries regarding certain foreign currency issues related to investments in Venezuela. This …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2cdd90327e5ec9112989da32d51c24ad42a24be6f1ee0d2333818db08d4be9bd","downloaded_from":"2026-09-10T01:47:45.334Z","last_downloaded_at":"2026-09-10T01:47:45.334Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479424","source_sha256":"3e1700e60a18fed473d6921fd2282cbd773e7b22aa3b33c0dd604acc8bc34210"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fa7ec3180b9417fafcd22f0035ee655917ad974ca1c2440ab254463a87fb3779","downloaded_from":"2026-09-10T01:47:45.334Z","last_downloaded_at":"2026-09-10T01:47:45.334Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479424","source_sha256":"3e1700e60a18fed473d6921fd2282cbd773e7b22aa3b33c0dd604acc8bc34210"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:38483f3b51fc84813cd4616917b25aa691d84753d07c25076721630ed6f6063c","downloaded_from":"2026-09-10T01:47:45.334Z","last_downloaded_at":"2026-09-10T01:47:45.334Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479424","source_sha256":"3e1700e60a18fed473d6921fd2282cbd773e7b22aa3b33c0dd604acc8bc34210"}}],"enrichment":{"summary":"ASC 830-30 governs how a reporting entity translates the financial statements of a foreign entity whose functional currency is not the reporting currency, when those statements are consolidated, combined, or accounted for under the equity method. Assets and liabilities are translated at the balance sheet date rate and revenues, expenses, gains, and losses at the rates on the dates recognized; the resulting translation adjustments go to other comprehensive income (accumulated as the cumulative translation adjustment, or CTA) rather than net income. The CTA is released into earnings only upon sale or complete or substantially complete liquidation of the investment in the foreign entity.","key_points":["All elements are translated at current rates: assets and liabilities at the balance sheet date rate, and revenues, expenses, gains, and losses (including allocations such as depreciation, cost of sales, and amortization) at the rates on the dates they are recognized, not the rates when the related items originated (830-30-45-3; 830-30-45-4).","Translation adjustments are excluded from net income and reported in other comprehensive income; accumulated translation adjustments attributable to noncontrolling interests are allocated to the noncontrolling interest (830-30-45-12; 830-30-45-17).","Upon sale or complete or substantially complete liquidation of an investment in a foreign entity, the related CTA is removed from equity and reported as part of the gain or loss on the sale or liquidation (830-30-40-1); a 'sale' includes loss of a controlling financial interest and a step acquisition in which the acquirer obtains control of a foreign equity method investee (830-30-40-1A).","Sale of part of an equity method investment in a foreign entity releases a pro rata portion of the CTA into the gain or loss, but partial liquidations of net assets within a foreign entity release no CTA until the 830-30-40-1 criteria are met (830-30-40-2; 830-30-40-3).","The rate applicable to dividend remittances is normally used; if exchangeability is temporarily lacking, the first subsequent rate at which exchanges can be made is used, and if the lack is other than temporary the propriety of consolidation, combination, or equity method accounting must be reconsidered (830-30-45-6; 830-30-45-9; Example 1 at 830-30-55-1).","CTA is included in the carrying amount of the investment for impairment testing only when the entity has committed to a plan that will cause the CTA to be reclassified to earnings; the effective net investment hedge portion of CTA is also included (830-30-45-13; 830-30-45-15).","Intra-entity profit eliminations use exchange rates at the dates of the sales or transfers (reasonable approximations or averages permitted), financial statements are not adjusted for rate changes occurring after the balance sheet date, and an analysis of changes in accumulated translation adjustments (beginning/ending balances, period adjustment, allocated income taxes, and amounts transferred to net income) must be presented in a separate statement, the notes, or the statement of changes in equity (830-30-45-10; 830-30-45-16; 830-30-45-18 through 45-20; 830-30-50-1)."],"categories":["Foreign currency","Presentation","Disclosure","Consolidation"],"audience_level":"intermediate","student_note":"Exam questions hinge on two distinctions: remeasurement gains/losses (830-20, to net income) versus translation adjustments (830-30, to OCI), and what counts as a triggering event for releasing CTA. The most common error is assuming any cash distribution or partial liquidation of a foreign entity's net assets recycles CTA — it does not; only a sale or complete/substantially complete liquidation (or a partial sale of an equity method interest, pro rata) does.","related_topics":["830-10","830-20","220-10","740-30","810-10","323-10"],"key_concepts":["cumulative translation adjustment","current rate method","functional currency","reporting currency","other comprehensive income","sale or substantially complete liquidation of a foreign entity","net investment hedge","intra-entity profit 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retrieval timestamps"}},{"number":"830-20","title":"Foreign Currency Transactions","topic_title":"Foreign Currency Matters","score":0.7893,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1a9dae71487d75a816c741a7cfd28ac69b114361f9fab903c30000879a511bc","downloaded_from":"2026-09-10T01:46:33.561Z","last_downloaded_at":"2026-09-10T01:47:07.110Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"740-830","title":"Foreign Currency Matters","topic_title":"Income Taxes","score":0.7667,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4741130d58a35143ff0de5c2be62e5de415eeb302b2d912f59f6592292febe29","downloaded_from":"2026-09-10T01:18:38.556Z","last_downloaded_at":"2026-09-10T01:19:00.224Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"830-946","title":"Financial Services—Investment Companies","topic_title":"Foreign Currency Matters","score":0.7396,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2bc8169dde74512ace74f62ee777e858b2b5a37b8474b8a5c0e804a08fbd13ba","downloaded_from":"2026-09-10T01:47:48.746Z","last_downloaded_at":"2026-09-10T01:48:09.816Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"230-830","title":"Foreign Currency Matters","topic_title":"Statement of Cash Flows","score":0.7369,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af6f666ed609ffa92342f7dbb595a10c29c47f0601b4b70ea9f7e08251614237","downloaded_from":"2026-09-09T23:11:52.130Z","last_downloaded_at":"2026-09-09T23:12:08.856Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not 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Ongoing revaluation of unsettled foreign-currency items produces unrealized foreign currency gain or loss, which is reclassified to realized gain or loss upon settlement (830-946-45-1). Critically, a fund is permitted—but not required—to separately isolate the foreign currency component of realized and unrealized gains and losses on investments, and it must disclose whichever practice it follows (830-946-45-4; 830-946-50-1).","concepts":["functional currency","spot rate translation","realized vs. unrealized foreign currency gain or loss","forward exchange contract","foreign withholding tax","investment company net asset value","trade date versus settlement date","discount accretion and premium amortization"],"categories":["Foreign currency","Industry-specific","Presentation","Disclosure"],"level":"advanced","topic_title":"Foreign Currency Matters","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-946-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Spot Rate Added Accounting Standards Update No. 2014-06 03/14/2014
946-830-05-2 Amended Accounting Standards Update No. 2012-04 10/01/2012
946-830-45-4 Amended Accounting Standards Update No. 2012-04 10/01/2012
946-830-45-7 Amended Accounting Standards Update No. 2014-06 03/14/2014
946-830-45-10 Amended Accounting Standards Update No. 2012-04 10/01/2012
946-830-45-13 through 45-17
 Amended Accounting Standards Update No. 2012-04 10/01/2012
946-830-45-19 Amended Accounting Standards Update No. 2012-04 10/01/2012
946-830-45-20 Amended Accounting Standards Update No. 2012-04 10/01/2012
946-830-50-2 Amended Accounting Standards Update No. 2012-04 10/01/2012
946-830-55-4 Amended Accounting Standards Update No. 2012-04 10/01/2012
946-830-55-7 Amended Accounting Standards Update No. 2012-04 10/01/2012
946-830-55-8 Amended Accounting Standards Update No. 2012-04 10/01/2012
946-830-55-13 Amended Accounting Standards Update No. 2012-04 10/01/2012
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nSpot Rate | Added | Accounting Standards Update No. 2014-06 | 03/14/2014 |\n| | | |\n946-8…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b26f51f0f8368ea58aa3778bc7403861d6c8c5cc73b177f4d56a4a0caf252572","downloaded_from":"2026-09-10T01:47:48.746Z","last_downloaded_at":"2026-09-10T01:47:48.746Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478015","source_sha256":"ea84f75da1b111201e91bdb60c63600f8b1391c5a941354467d06c394c8b1dd7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0b69a5a71373d884102de60c1a4012ce583a535af54dffaa02b7f2416353832","downloaded_from":"2026-09-10T01:47:48.746Z","last_downloaded_at":"2026-09-10T01:47:48.746Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478015","source_sha256":"ea84f75da1b111201e91bdb60c63600f8b1391c5a941354467d06c394c8b1dd7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:186c64721f4193d2ee257ff6dcf4344a153a4011fe1d255dcfa557f98065e741","downloaded_from":"2026-09-10T01:47:48.746Z","last_downloaded_at":"2026-09-10T01:47:48.746Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478015","source_sha256":"ea84f75da1b111201e91bdb60c63600f8b1391c5a941354467d06c394c8b1dd7"}},{"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.
","snippet":"This Subtopic provides guidance on computing and reporting foreign currency transaction gains or losses for investment companies that do any of the following:\n(a) Invest in securities denominated or expected to settle in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f3621efc25de4af32f283f91d45eea5cdbd9e731d1f40859a4770cdc0b30ef0","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"}},{"citation":"830-946-05-2","para":"05-2","html":"
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"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"830-946-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 946-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 946-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b85afdb8bc4f0ce6d031e8d79dc0ed5c786743c0f522de2e17307102e47989e6","downloaded_from":"2026-09-10T01:47:55.394Z","last_downloaded_at":"2026-09-10T01:47:55.394Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477992","source_sha256":"150540efa64deab0f977d4acb7785c4466ac1ed9fda4a5be4cfc108698123ff1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ad0acb5c700126374fe4fa3e7d3fd57f13f8c09657bc1c2bb6d27587b06a2a8","downloaded_from":"2026-09-10T01:47:55.394Z","last_downloaded_at":"2026-09-10T01:47:55.394Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477992","source_sha256":"150540efa64deab0f977d4acb7785c4466ac1ed9fda4a5be4cfc108698123ff1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95384cda2b9d1c5dd669d0a606d8112d21af74a46de7f155890670b1dc032a74","downloaded_from":"2026-09-10T01:47:55.394Z","last_downloaded_at":"2026-09-10T01:47:55.394Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477992","source_sha256":"150540efa64deab0f977d4acb7785c4466ac1ed9fda4a5be4cfc108698123ff1"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"830-946-45-1","para":"45-1","html":"
The ongoing revaluation of investments and receivables or payables representing unsettled foreign currency transactions shall be classified as unrealized foreign currency gain or loss. On settlement (when there is actual cash flow), a realized foreign currency gain or loss shall be recorded.
","snippet":"The ongoing revaluation of investments and receivables or payables representing unsettled foreign currency transactions shall be classified as unrealized foreign currency gain or loss. On settlement (when there is actual…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d29ea59ec1a9e5a70cb6fb80e9b5aa22ee5b1539882afa5d6eb1f49c9c6a4d29","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-2","para":"45-2","html":"
Each transaction denominated in a foreign currency can initially be measured only in that currency. Any differences between originally recorded amounts and currently consummated or measured amounts in the reporting currency are a function of both of the following factors:
  1. a
    Foreign exchange rate changes
  2. b
    Changes in market prices.
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Those effects shall be identified, computed, and reported other than for gains and losses on investments.
","snippet":"Those effects shall be identified, computed, and reported other than for gains and losses on investments.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75e673cdd9009c433e71a0214ae786d69085615e20fe5a919e190839e9c093e7","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-4","para":"45-4","html":"
The practice of not separately disclosing the portion of the changes in fair values of investments and realized gains and losses thereon that result from foreign currency rate changes is permitted. However, separate reporting of such gains and losses is allowable and, if adopted by the reporting entity, shall conform to the guidance in this Subtopic.
","snippet":"The practice of not separately disclosing the portion of the changes in fair values of investments and realized gains and losses thereon that result from foreign currency rate changes is permitted. However, separate repo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e5b2145f7e0a3526144caad755de53013a5375f6f51cbfe6885c4b612d063b6","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-5","para":"45-5","html":"
For funds that invest in countries that are highly inflationary, the separate measurement and disclosure of the foreign currency element may not be meaningful.
","snippet":"For funds that invest in countries that are highly inflationary, the separate measurement and disclosure of the foreign currency element may not be meaningful.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f20b27e58498932ea1bfcaf976d77bc2063525e90a2cf944d34590f32000bacd","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-6","para":"45-6","html":"
The remainder of the guidance in this Section is organized as follows:
  1. a
    Cash
  2. b
    Derivative instruments—forward exchange contracts
  3. c
    Securities
  4. d
    Receivables and payables
  5. e
    Income
  6. f
    Expenses
  7. g
    Financial statement presentation.
","snippet":"The remainder of the guidance in this Section is organized as follows:\n(a) Cash\n(b) Derivative instruments—forward exchange contracts\n(c) Securities\n(d) Receivables and payables\n(e) Income\n(f) Expenses\n(g) Financial stat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ddbe01f7da1eb1cde9ec9050ca20f71de647aebcbe9610df72626746fc09c55","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c3b37c7fca83f0fe50472b386d2ac60966217dc734023634d8ae2234c078611a","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"block":null,"heading":"Cash","paragraphs":[{"citation":"830-946-45-7","para":"45-7","html":"
Foreign currency cash balances and movements shall be accounted for in the same way that foreign-currency-denominated securities are. Every receipt of a foreign currency shall be treated as a purchase of a security and recorded in the functional currency at the spot rate on the cash receipt date. Similarly, every disbursement of a foreign currency shall be treated as a sale of a security and the appropriate functional currency cost shall be released, depending on whether a specific identified cost, the first-in, first-out (FIFO) method, or an average cost is used.
","snippet":"Foreign currency cash balances and movements shall be accounted for in the same way that foreign-currency-denominated securities are. Every receipt of a foreign currency shall be treated as a purchase of a security and r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7976c94244558f22c19a7625d1cd80f10ca5bace7fd8f0ffe2654cb014818836","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-8","para":"45-8","html":"
The acquisition of a foreign currency does not result in any foreign currency gain or loss. However, the disbursement of a foreign currency shall result in a realized foreign currency gain or loss that is the difference between the functional currency equivalent of the foreign currency when it was acquired and the foreign currency disbursement translated at the spot rate on the disbursement date.
","snippet":"The acquisition of a foreign currency does not result in any foreign currency gain or loss. However, the disbursement of a foreign currency shall result in a realized foreign currency gain or loss that is the difference …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25f4b96e2d4d22250a5b85d63a8c5500f21d0c8a97049f6f3fcd5456f898a08f","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-9","para":"45-9","html":"
Also, as is the case with all other assets and liabilities denominated in a foreign currency, foreign currency cash balances shall be translated on each valuation date at the spot rate on that date, resulting in unrealized foreign currency gain or loss.
","snippet":"Also, as is the case with all other assets and liabilities denominated in a foreign currency, foreign currency cash balances shall be translated on each valuation date at the spot rate on that date, resulting in unrealiz…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2f6ddbf1768b0b75c76dd72ee100bc555e59c71bf4053bef72da68eb205c278","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f7245d8ae6769ba7fd2bbb6125fddc5fd952ab1374e3b43a75b4b13e2e081fe1","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"block":null,"heading":"Derivative Instruments—Forward Exchange Contracts","paragraphs":[{"citation":"830-946-45-10","para":"45-10","html":"
If a fund enters into a forward exchange contract, the forward contract shall be recorded on the inception date at the forward rate and subsequently measured at fair value daily.
","snippet":"If a fund enters into a forward exchange contract, the forward contract shall be recorded on the inception date at the forward rate and subsequently measured at fair value daily.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ab10034dc0578effb96e43e13c0cd39cb13ec1a34d6af71d51312b6110ddefb","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-11","para":"45-11","html":"
The unrealized foreign currency gain or loss on such a contract is the difference between the foreign currency amount valued at the forward rate (on the valuation date) and the original contracted value of the forward contract (the amount to be received or paid at expiration or settlement date). On the expiration or settlement date, the unrealized foreign currency gain or loss shall be reclassified as realized foreign currency gain or loss.
","snippet":"The unrealized foreign currency gain or loss on such a contract is the difference between the foreign currency amount valued at the forward rate (on the valuation date) and the original contracted value of the forward co…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ffdd5ca3d2b40aa1c72969d94269a3182f60cc273b5bc538865295ff5012e329","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-12","para":"45-12","html":"
If the forward contract is meant to hedge the payable for the purchase of a security denominated in a foreign currency, the cost of the investment purchased and the related payable that has been hedged by the forward contract shall still be recorded at the spot rate on the trade date, and the payable shall be translated into the functional currency daily.
","snippet":"If the forward contract is meant to hedge the payable for the purchase of a security denominated in a foreign currency, the cost of the investment purchased and the related payable that has been hedged by the forward con…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1bb88caef34e02e3ea09d8bc85fe8c104b0f00b7af9527110d416373356a4917","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:77fda73beb1fcef728eddf8f05dfda5cd28828339f6dddde0591f92d9006c7b2","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"block":null,"heading":"Securities","paragraphs":[{"citation":"830-946-45-13","para":"45-13","html":"
The guidance on foreign currency matters related to securities is organized as follows:
  1. a
    Purchased interest
  2. b
    Subsequently measuring at fair value
  3. c
    Sale of securities
  4. d
    Sale of interest.
","snippet":"The guidance on foreign currency matters related to securities is organized as follows:\n(a) Purchased interest\n(b) Subsequently measuring at fair value\n(c) Sale of securities\n(d) Sale of interest.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:43fca9dac7927ef16920b8f6d4721058d655916adc67335aed655d312ee8f015","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-14","para":"45-14","html":"
Purchased interest represents the interest accrued between the last coupon date and the settlement date of the purchase. It should be recorded in the functional currency as interest receivable at the spot rate on the purchase trade date, and subsequently measured at fair value using each valuation date's spot rate. After the settlement date, daily interest income should be accrued at the daily spot rate. It may be impractical to prepare the foregoing calculations daily, and, therefore, the use of a weekly or monthly average rate may be appropriate in many cases, especially if the exchange rate does not fluctuate significantly. However, if the exchange rate fluctuation is significant, the calculation should be made daily.
","snippet":"Purchased interest represents the interest accrued between the last coupon date and the settlement date of the purchase. It should be recorded in the functional currency as interest receivable at the spot rate on the pur…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0b4af58610510070417cc9021694467a90b51d84a95abe5cbc7817bc5a866070","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-15","para":"45-15","html":"
A fund investing in foreign securities generally invests in such securities to reap the potential benefits offered by the local capital market. It may also invest in such securities as a means of investing in the foreign currency market or of benefiting from the foreign currency rate fluctuation. The extent to which separate information regarding foreign currency gains or losses will be meaningful will vary depending on the circumstances, and separate information may not measure with precision foreign exchange gains or losses associated with the economic risks of foreign currency exposures. A foreign currency rate fluctuation, however, may be an important consideration in the case of foreign investments, and a reporting entity may choose to identify and separately report any resulting foreign currency gains or losses as a component of unrealized fair value gains or losses on investments.
","snippet":"A fund investing in foreign securities generally invests in such securities to reap the potential benefits offered by the local capital market. It may also invest in such securities as a means of investing in the foreign…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6735db520248874075a090aaf6fdc675df5a1dbe1aef37f1dae4d5d03ff2bc2d","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-16","para":"45-16","html":"
The fair value of securities shall initially be determined in the foreign currency and translated at the spot rate on the purchase trade date. The unrealized gain or loss between the original cost (translated on the trade date) and the fair value (translated on the valuation date) comprises both of the following elements:
  1. a
    Changes in the fair value of securities before translation
  2. b
    Movement in foreign currency rate.
","snippet":"The fair value of securities shall initially be determined in the foreign currency and translated at the spot rate on the purchase trade date. The unrealized gain or loss between the original cost (translated on the trad…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:23810a8c24d899e5dcf2e6c6bc2c55f89d7deb8f8948fd70e9d276c2553f25aa","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-17","para":"45-17","html":"
Such movements may be combined as permitted by paragraph 946-830-45-4. If separate disclosure of the foreign currency gains and losses is chosen, the changes in the fair value of securities before translation should be measured as the difference between the fair value in foreign currency and the original cost in foreign currency translated at the spot rate on the valuation date. The effect of the movement in the foreign exchange rate shall be measured as the difference between the original cost in foreign currency translated at the current spot rate and the historical functional currency cost. These values can be computed as follows:
  1. a
    (Fair value in foreign currency - original cost in foreign currency) x valuation date spot rate = unrealized fair value appreciation or depreciation.
  2. b
    (Cost in foreign currency times valuation date spot rate) - cost in functional currency = the unrealized foreign currency gain or loss.
","snippet":"Such movements may be combined as permitted by paragraph 946-830-45-4. If separate disclosure of the foreign currency gains and losses is chosen, the changes in the fair value of securities before translation should be m…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bee68eb3c28fe24baae3ed4773d4f6a4b3ec9e32f15d07ea0ef61898671b0d86","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-18","para":"45-18","html":"
The preceding formulas could be refined to isolate and report the rate change element in the changes in the gains or losses on investments between valuation dates. However, the cost of doing so would not be justified for the relatively minor improvement thereof. Furthermore, such refinement would both:
  1. a
    Be a departure from the method required for federal income tax reporting for realized foreign currency gains or losses on debt securities
  2. b
    Represent a departure from the practice of those investment companies that presently separately report in their financial statements the effects of foreign exchange on securities gains or losses.
","snippet":"The preceding formulas could be refined to isolate and report the rate change element in the changes in the gains or losses on investments between valuation dates. However, the cost of doing so would not be justified for…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:34ed462b7cccd51667db55a98997d0b97d305f57a49a6f17650bdcea74e356e8","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-19","para":"45-19","html":"
For short-term securities held by a fund that follows the amortized cost method of valuation, the amortized cost value should be substituted for fair value in the formulas given in the preceding two paragraphs if separate reporting is chosen by the reporting entity.
","snippet":"For short-term securities held by a fund that follows the amortized cost method of valuation, the amortized cost value should be substituted for fair value in the formulas given in the preceding two paragraphs if separat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aba3cdf710bece97135397188386da59cd0be33d19dabbe1e09a7f57905601d8","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-20","para":"45-20","html":"
If separate reporting of foreign currency gains and losses on sales of securities is chosen by the reporting entity, the computation of the effects of the changes in fair value and the foreign currency rate is similar to that described in paragraphs
946-830-45-17 through 45-18
. Fair value in the formula given in those paragraphs should be replaced with sale proceeds and valuation date shall be replaced with sale trade date. Accordingly, the values shall be computed as follows:
  1. a
    (Sale proceeds in foreign currency - original cost in foreign currency) x sale trade date spot rate = realized fair value gain or loss on sale of security.
  2. b
    (Cost in foreign currency x sale trade date spot rate) - cost in functional currency = realized foreign currency gain or loss.
","snippet":"If separate reporting of foreign currency gains and losses on sales of securities is chosen by the reporting entity, the computation of the effects of the changes in fair value and the foreign currency rate is similar to…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:845565c3ddfae13de8ecba8b4194caa9325228b506bdb0e6c6305a281cd408c5","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-21","para":"45-21","html":"
The sale of a security results in a receivable for the security sold. The related receivable shall be recorded on the trade date at the spot rate. On the settlement date, the difference between the recorded receivable amount and the actual foreign currency received converted into the functional currency at the spot rate shall be recognized as a realized foreign currency gain or loss.
","snippet":"The sale of a security results in a receivable for the security sold. The related receivable shall be recorded on the trade date at the spot rate. On the settlement date, the difference between the recorded receivable am…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c7ede6692920f508130a78f0fc573b3a743ffe741bd4500591aa9daaa72dcd6c","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-22","para":"45-22","html":"
Interest sold represents the accrued interest receivable between the last coupon date and the settlement date of sale of the security. The difference between the recorded interest receivable amount and the actual foreign currency received (converted into the functional currency at the spot rate) shall be recognized as a realized foreign currency gain or loss.
","snippet":"Interest sold represents the accrued interest receivable between the last coupon date and the settlement date of sale of the security. The difference between the recorded interest receivable amount and the actual foreign…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4848cc0418a22570f1896deb3194476261586c34525994d3182dcd0dfcd7a14b","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7cca92c105f00981c4cfdbaa13ff5e428df9b711c0dd77a54af4f82056ebc6f","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"block":null,"heading":"Receivables and Payables","paragraphs":[{"citation":"830-946-45-23","para":"45-23","html":"
All receivables and payables that are denominated in a foreign currency and that may relate to income or expense, or to securities sold or purchased, shall be translated into the functional currency each valuation date at the spot rate on that date. The difference between that amount and the functional currency amount that was recorded at various spot rates for income and expense items, and at the trade date spot rate in the case of sales and purchases of securities, is unrealized foreign currency gain or loss. Upon liquidation of the receivable or payable balance in a foreign currency, the difference shall be reclassified as realized foreign currency gain or loss.
","snippet":"All receivables and payables that are denominated in a foreign currency and that may relate to income or expense, or to securities sold or purchased, shall be translated into the functional currency each valuation date a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fde062cf93c6f4fd6479b8c836c9614fd189e690b7893380de4cd55d9a0d7bac","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:66feaecb55698c9397bffaf90173b2c8c78e2a9ca3fb30ae8cd85aa297e1355a","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"block":null,"heading":"Income","paragraphs":[{"citation":"830-946-45-24","para":"45-24","html":"
This guidance on foreign currency matters involving income is organized as follows:
  1. a
    Interest
  2. b
    Accretion and amortization
  3. c
    Dividends
  4. d
    Withholding tax.
","snippet":"This guidance on foreign currency matters involving income is organized as follows:\n(a) Interest\n(b) Accretion and amortization\n(c) Dividends\n(d) Withholding tax.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:47cb10ade254cc35d2f2d6649d8c85ef3fdc6d043d2a5b7977acd1dd75cfd336","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-25","para":"45-25","html":"
Interest on securities denominated in a foreign currency shall be calculated at the stated rate of interest in the foreign currency. The interest shall be accrued daily in the foreign currency at the stated interest rate and translated into the functional currency at the daily spot rate. It may be impractical to prepare such a calculation daily, and, therefore, the use of a weekly or monthly average rate may be appropriate in many cases, especially if the exchange rate does not fluctuate significantly. However, if the exchange rate fluctuation is significant, the calculation shall be made daily.
","snippet":"Interest on securities denominated in a foreign currency shall be calculated at the stated rate of interest in the foreign currency. The interest shall be accrued daily in the foreign currency at the stated interest rate…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:96476969fadaac9f1203623768fa9e891efdaf3dc9b3b323b37f2588d45e8f09","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-26","para":"45-26","html":"
The related receivable balance along with purchased interest, if any, shall be accumulated in the foreign currency and translated into the functional currency daily using the spot rate for that date. The difference between the income accrued in the functional currency and the foreign currency receivable at the valuation date spot rate shall be recognized as an unrealized foreign currency gain or loss.
","snippet":"The related receivable balance along with purchased interest, if any, shall be accumulated in the foreign currency and translated into the functional currency daily using the spot rate for that date. The difference betwe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ce530da7b11d3e665e35184748d12b07890c58eacf4e4ab8ba9af750d1ff4e8","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-27","para":"45-27","html":"
When the interest is received and recorded in the functional currency at the spot rate on that date, the unrealized foreign currency gain or loss shall be reclassified as realized foreign currency gain or loss.
","snippet":"When the interest is received and recorded in the functional currency at the spot rate on that date, the unrealized foreign currency gain or loss shall be reclassified as realized foreign currency gain or loss.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62262d7b03344000a04624a9e2e2ea5382f9dd0bba681d9f2a480aa1af6e9cef","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-28","para":"45-28","html":"
Accretion of discounts and amortization of premiums on bonds shall be calculated daily in the foreign currency. The resulting amount of income or offset to income shall be translated into the functional currency using that day's spot rate. The same foreign currency amount shall be recorded as an addition to cost for accretion of discounts and a reduction to cost for amortization of premiums. Accordingly, cost consists of the original cost, translated at the spot rate in effect on the trade date the bond was bought and adjusted for discount accretion or premium amortization at the spot rate on the date of adjustment. As stated in paragraph 946-830-45-25, use of a weekly or monthly average rate may be appropriate in certain circumstances.
","snippet":"Accretion of discounts and amortization of premiums on bonds shall be calculated daily in the foreign currency. The resulting amount of income or offset to income shall be translated into the functional currency using th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ac03f2a8646c22107a167e1ca4b7e4f378c3916b1e64d4f6cef80d3d03ce4840","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-29","para":"45-29","html":"
On maturity, the carrying cost (including accretion or amortization) of the security in the foreign currency equals the proceeds. However, this will not be the case in the functional currency. The original cost shall be translated into the functional currency at the spot rate on the trade purchase date and the accretion or amortization shall be translated at periodic spot rates. The proceeds shall be translated into the functional currency at the spot rate on the maturity date. The difference between the proceeds and the accumulated cost in the functional currency shall be recognized as a realized foreign currency gain or loss.
","snippet":"On maturity, the carrying cost (including accretion or amortization) of the security in the foreign currency equals the proceeds. However, this will not be the case in the functional currency. The original cost shall be …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f67072148be576205e5e7d33548c62f078ada4147faea66411a52e07aea4dfbd","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-30","para":"45-30","html":"
Recording dividends on foreign securities is often difficult because, in certain countries, entities customarily declare dividends retroactively or there is a lack of timely information. Additionally, in some countries, the sequencing of the declaration date and ex-dividend date may be different from the sequencing of these dates in the United States, thus necessitating a modification of the practice of recording dividends on the ex-dividend date (see paragraph 946-320-35-5). Also, foreign entities often declare stock dividends instead of cash dividends or take other corporate actions such as issuing rights or warrants.
","snippet":"Recording dividends on foreign securities is often difficult because, in certain countries, entities customarily declare dividends retroactively or there is a lack of timely information. Additionally, in some countries, …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b90cef48eb0ed9ea1509e3373f286fa07400dd97d9b1965a0c3355bab564ba4","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-31","para":"45-31","html":"
Dividend income on securities denominated in foreign currency shall be recorded on the ex-date, at the spot exchange rate of the foreign currency to the reporting currency on that date. The related dividend receivable shall be translated into the functional currency daily at the spot rate, and the difference between the dividend accrued in the functional currency and the foreign currency receivable at the valuation date spot rate shall be recognized as an unrealized foreign currency gain or loss. When the dividend is received, the unrealized foreign currency gain or loss shall be reclassified as realized foreign currency gain or loss.
","snippet":"Dividend income on securities denominated in foreign currency shall be recorded on the ex-date, at the spot exchange rate of the foreign currency to the reporting currency on that date. The related dividend receivable sh…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d5e28fd7f2668c586d9c7cc893255726749c4bf55f733bf6257b1fe0624c9b72","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-32","para":"45-32","html":"
The preceding approach to measuring investment income ensures that investment income accrued on foreign securities reflects the investment transaction without regard to the foreign currency gain or loss created in the time between the accrual and collection of the income.
","snippet":"The preceding approach to measuring investment income ensures that investment income accrued on foreign securities reflects the investment transaction without regard to the foreign currency gain or loss created in the ti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5368295b759d807cc1771c1a54791329ba0e3f9440deaa42c285212a19b06d73","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-33","para":"45-33","html":"
Many foreign countries do not tax capital gains on investments by foreign investors; however, if such gains are taxable, an accrual for capital gains taxes payable on both realized and unrealized gains shall be included in the net asset value per share calculation.
","snippet":"Many foreign countries do not tax capital gains on investments by foreign investors; however, if such gains are taxable, an accrual for capital gains taxes payable on both realized and unrealized gains shall be included …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bbd79e48cf228287708c59b81d93be32a1a478f38dc28854be1602002dbddc8c","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-34","para":"45-34","html":"
Whenever tax is withheld from investment income at the source, the amounts withheld that are not reclaimable shall be accrued along with the related income on each income recognition date if the tax rate is fixed and known. If the tax withheld is reclaimable from the local tax authorities, it shall be recorded as a receivable and not as an expense. When the investment income is received net of the tax withheld, a separate realized foreign currency gain or loss shall be computed on the gross income receivable and the accrued tax expense. If the tax rate is not known or estimable, such expense or receivable shall be recorded on the date the net amount is received; accordingly, there would be no foreign currency gain or loss. However, if a receivable is recorded, there may be a foreign currency gain or loss through the date such receivable is collected.
","snippet":"Whenever tax is withheld from investment income at the source, the amounts withheld that are not reclaimable shall be accrued along with the related income on each income recognition date if the tax rate is fixed and kno…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6439eae6da320f10b241c019c7eee09d29afb029a6b8bf2daa473eabf5a1b7ef","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1d07ad99e40ca367b3e0eccf8e8386b2868d3f0bf0f70c430039716d867f03fd","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"block":null,"heading":"Expenses","paragraphs":[{"citation":"830-946-45-35","para":"45-35","html":"
The accounting for expenses payable in a foreign currency is identical to that for investment income receivable in a foreign currency. An expense shall be accrued as incurred and translated into the functional currency at the spot rate each day. The use of an average weekly or monthly foreign currency rate would be acceptable if the foreign currency rate does not fluctuate significantly. The related accrued expense balance shall be accumulated in the foreign currency and translated into the functional currency daily, using the spot rate for that date. The difference between the expense accrued in the functional currency and the related foreign currency accrued expense balance translated into the functional currency at the valuation date spot rate shall be recognized as an unrealized foreign currency gain or loss. When the expense is paid, the unrealized foreign currency gain or loss shall be reclassified as realized foreign currency gain or loss.
","snippet":"The accounting for expenses payable in a foreign currency is identical to that for investment income receivable in a foreign currency. An expense shall be accrued as incurred and translated into the functional currency a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e5e3f86edaad6522fdd5d4fc0b57d04d083e904689ac6f4799c9347b7f41223","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ca4f30ad66a403e96e2b55b4b4a42cf7c47dc4ed9f9e069664761e8ffc514bd","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"block":null,"heading":"Financial Statement Presentation","paragraphs":[{"citation":"830-946-45-36","para":"45-36","html":"
An investment company is not required to separately disclose that portion of unrealized and realized gains and losses on investments that results from foreign currency changes. All other foreign currency gains or losses shall be reported under the realized and unrealized gain or loss on investments and foreign currency section in the statement of operations.
","snippet":"An investment company is not required to separately disclose that portion of unrealized and realized gains and losses on investments that results from foreign currency changes. All other foreign currency gains or losses …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ddff3b1027dbf0498f0ab6d76e1d6a8c48b17866b9acc6fb8dad66e69913fd0b","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-37","para":"45-37","html":"
For example, realized foreign currency gain or loss on interest and dividends shall be included in the realized foreign currency gain or loss component of net realized gain or loss. All unrealized foreign currency gain or loss, other than those on investments, shall be reported as unrealized appreciation or depreciation on translation of assets and liabilities in foreign currencies. The statement of changes in net assets and the statement of assets and liabilities shall reflect the same realized and unrealized gain and loss components. However, it is permissible to report each of the following items as single components in those statements:
  1. a
    The combination of the net realized gains or losses from investments with net realized gains or losses from foreign currency transactions
  2. b
    The combination of the net unrealized appreciation (depreciation) on investments with the net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies.
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If separate reporting of the unrealized and realized foreign currency gains or losses on investments is chosen, such gains and losses shall be aggregated with all other foreign currency gains and losses and reported as described in the preceding paragraph.
","snippet":"If separate reporting of the unrealized and realized foreign currency gains or losses on investments is chosen, such gains and losses shall be aggregated with all other foreign currency gains and losses and reported as d…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f201b0a73cf6763b7b3ed033ffbe655f2c6f1bdd2b88d6bd921a38504f464b10","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"citation":"830-946-45-39","para":"45-39","html":"
Taxes withheld that are not reclaimable, if any, on foreign source income shall be deducted from the relevant income item and shall be shown either parenthetically or as a separate contra item in the income section of the statement of operations. Taxes levied on the aggregate income or capital gains of the investment company itself shall be presented in a manner that is similar to that used for income taxes. The normal withholding taxes shall be presented as follows.
","snippet":"Taxes withheld that are not reclaimable, if any, on foreign source income shall be deducted from the relevant income item and shall be shown either parenthetically or as a separate contra item in the income section of th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b239ab87032129fde401ac6ee4d4a1d07ed3da9c21284b3a422947c643ae2a31","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c619d0247aae861afa0948db009c331e3370c2b6bc8faa5e851b4a5a3e9292ba","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:197a9593e893c885e4193c4d48e53d66133e66ee1b9015512d3ac137035b9744","downloaded_from":"2026-09-10T01:48:02.598Z","last_downloaded_at":"2026-09-10T01:48:02.598Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477346","source_sha256":"5ede96ccb369b93cf6050b7b5c69ed67740b295f1563efae0e5ce83ababc2664"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"830-946-50-1","para":"50-1","html":"
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.
","snippet":"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 currenc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ef424a57385bb227adb215c0ae8f2e81f57aa72945ed36851fd92e0d0453c76","downloaded_from":"2026-09-10T01:48:04.400Z","last_downloaded_at":"2026-09-10T01:48:04.400Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478128","source_sha256":"d364e896e00d53b0cded113cfe3f3430d431d166bc62bf0d30c22130215e8aed"}},{"citation":"830-946-50-2","para":"50-2","html":"
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.
  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.
","snippet":"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:\n(a) …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aedb3ce14f1e9bb8e280341554f94466977544ff4523674e57454b133aff352e","downloaded_from":"2026-09-10T01:48:04.400Z","last_downloaded_at":"2026-09-10T01:48:04.400Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478128","source_sha256":"d364e896e00d53b0cded113cfe3f3430d431d166bc62bf0d30c22130215e8aed"}},{"citation":"830-946-50-3","para":"50-3","html":"
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.
","snippet":"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 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3bf793287583dc8234d49c7f3f0ab094df14d81dad00fa622a5632875e10d4f5","downloaded_from":"2026-09-10T01:48:04.400Z","last_downloaded_at":"2026-09-10T01:48:04.400Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478128","source_sha256":"d364e896e00d53b0cded113cfe3f3430d431d166bc62bf0d30c22130215e8aed"}},{"citation":"830-946-50-4","para":"50-4","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2f5458e52599c9317d21c129654bd9a2377795d16267bcce7257431e8242f909","downloaded_from":"2026-09-10T01:48:04.400Z","last_downloaded_at":"2026-09-10T01:48:04.400Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478128","source_sha256":"d364e896e00d53b0cded113cfe3f3430d431d166bc62bf0d30c22130215e8aed"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2a0e18de9e2a3d104bcaf76ae54f531782a2be03486828635651ed4c482f9a2","downloaded_from":"2026-09-10T01:48:04.400Z","last_downloaded_at":"2026-09-10T01:48:04.400Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478128","source_sha256":"d364e896e00d53b0cded113cfe3f3430d431d166bc62bf0d30c22130215e8aed"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ee9b31bdc450344664ab3f7c69b595c65167696f70325a75e38a003107396b93","downloaded_from":"2026-09-10T01:48:04.400Z","last_downloaded_at":"2026-09-10T01:48:04.400Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478128","source_sha256":"d364e896e00d53b0cded113cfe3f3430d431d166bc62bf0d30c22130215e8aed"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"830-946-55-1","para":"55-1","html":"
For illustrative purposes, this Section assumes that the U.S. dollar is the functional currency of the reporting investment company.
","snippet":"For illustrative purposes, this Section assumes that the U.S. dollar is the functional currency of the reporting investment company.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3c8ef3753ea19e465f836d46b108aff24e6a83f6fda018813b3948c850d8c32","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-2","para":"55-2","html":"
This Example illustrates the application of the guidance in this Subtopic. The first two illustrations apply if separate disclosures of the foreign currency elements of unrealized and realized gains and losses on investments are chosen by the reporting entity.
","snippet":"This Example illustrates the application of the guidance in this Subtopic. The first two illustrations apply if separate disclosures of the foreign currency elements of unrealized and realized gains and losses on investm…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c0653122e05e84fd2a412678b5b247bd2b23d7ff1a9dc550aaee25e1f7648de2","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-3","para":"55-3","html":"
Calculations for securities purchases and sales follow.
","snippet":"Calculations for securities purchases and sales follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bf7706b1ccc588c44db418e5d71e979a05c7c019063022196331a6c192f5e20e","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-4","para":"55-4","html":"
Calculations and journal entries related to subsequently measuring the securities at fair value follow.
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Calculations and journal entries for changes in foreign currency exchange rate follow.
","snippet":"Calculations and journal entries for changes in foreign currency exchange rate follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1c1e38e6049631fe7a91c2becb65e7c854b07ee071a4a245a88fff65620a600","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-6","para":"55-6","html":"
Calculations and entries for changes between the trade date and the settlement date follow.
","snippet":"Calculations and entries for changes between the trade date and the settlement date follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0dc697c2c010351488efd7e54d120ac504acc90b9c10d5338f88f5c75d4a7633","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-7","para":"55-7","html":"
Calculations and entries for settlement against foreign currency cash balances follow.
","snippet":"Calculations and entries for settlement against foreign currency cash balances follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fef4c05982267ff4dc26b5c67d6390170a37566cd6fef7f288a88bd5a475aeb3","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-8","para":"55-8","html":"
Calculations and entries for the sale of XYZ shares follow.
","snippet":"Calculations and entries for the sale of XYZ shares follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a85117ab2be150615bdbe36dcdc72bafcd4e6564825d9d1c1e93d09fcdedb0ff","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-9","para":"55-9","html":"
This Example provides illustrative financial statements that show application of the requirements in this Subtopic.
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An illustrative statement of operations follows.
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An illustrative statement of changes in net assets follows.
","snippet":"An illustrative statement of changes in net assets follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3ceb5c1bf6c9b3b240d8d92ee691c8b3d879049b15eec08d0fb644986fbfa58","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-12","para":"55-12","html":"
An illustrative statement of assets and liabilities follows.
","snippet":"An illustrative statement of assets and liabilities follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e23ecccfc091907889c6f0f5d9d63550e5595e0500888ca70feac0425c26fb18","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-13","para":"55-13","html":"
An illustrative note to the financial statements concerning foreign currency follows.
","snippet":"An illustrative note to the financial statements concerning foreign currency follows.\nForeign Currency. Amounts denominated in or expected to settle in foreign currencies are translated into U.S. dollars at rates reporte…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:842a26fa06b1aa2180ccf6dec1c001a2fc089959ad5ebba0aa70cdbf69053688","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-14","para":"55-14","html":"
An illustrative disclosure if the fund chooses to report the foreign currency elements of realized and unrealized gains and losses on investments follows.
","snippet":"An illustrative disclosure if the fund chooses to report the foreign currency elements of realized and unrealized gains and losses on investments follows.\nThe Fund isolates that portion of the results of operations resul…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb3dadc65a07c4e0b249d6b0cab776bd22ca2cc365498a28e176c6c9fbfafd30","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-15","para":"55-15","html":"
An illustrative disclosure if the fund chooses not to report foreign currency elements of realized and unrealized gains and losses on investments follows.
","snippet":"An illustrative disclosure if the fund chooses not to report foreign currency elements of realized and unrealized gains and losses on investments follows.\nThe Fund does not isolate that portion of the results of operatio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:408ed0b7aa520771b81b6c95b9f9c42112e00e8f7b2cd08a5fb16349369d3b08","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}},{"citation":"830-946-55-16","para":"55-16","html":"
The following illustrative note shall be considered if applicable to the respective fund.
","snippet":"The following illustrative note shall be considered if applicable to the respective fund.\nThe Fund has obtained the approval of the Central Bank for the registration and conversion into foreign currency of all proceeds o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:80a29c91e90c78f8dd78df0b3f7b3bb77b442ed807aade43f863c85ae222333e","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a75173a4076dc1090cecdf4c5aea061604adde43563e91b359edcd6dd2796b5b","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3f8e0f9d2e8f49be9af3fa45dd15ac535c0b0e620c4a82d97ded3d15ec210413","downloaded_from":"2026-09-10T01:48:07.587Z","last_downloaded_at":"2026-09-10T01:48:07.587Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479168","source_sha256":"90d378d08da7c51fb373e666e9a2da9b80f4ac195a59a56d1f8bab59a1fbcd01"}}],"enrichment":{"summary":"This Subtopic tells investment companies how to compute and report foreign currency transaction gains and losses on foreign-currency-denominated securities, cash, forward contracts, receivables/payables, income, and expenses. Ongoing revaluation of unsettled foreign-currency items produces unrealized foreign currency gain or loss, which is reclassified to realized gain or loss upon settlement (830-946-45-1). Critically, a fund is permitted—but not required—to separately isolate the foreign currency component of realized and unrealized gains and losses on investments, and it must disclose whichever practice it follows (830-946-45-4; 830-946-50-1).","key_points":["Revaluation of investments and unsettled foreign currency receivables/payables is unrealized foreign currency gain or loss; on actual cash settlement it becomes realized gain or loss (830-946-45-1, 45-23).","Separate reporting of the foreign currency portion of changes in fair value and realized gains on investments is optional, but if elected must follow this Subtopic's formulas, and the entity must disclose its inclusion/exclusion practice (830-946-45-4, 45-36, 830-946-50-1).","If separate reporting is elected: (fair value in FC − cost in FC) × valuation-date spot rate = unrealized fair value appreciation/depreciation, and (cost in FC × valuation-date spot rate) − cost in functional currency = unrealized foreign currency gain or loss; substitute sale proceeds and sale trade date for sales (830-946-45-17, 45-20).","Foreign currency cash is treated like a security: receipts are recorded at the receipt-date spot rate (no gain or loss on acquisition), disbursements release cost (specific identification, FIFO, or average) and produce realized foreign currency gain or loss, with balances retranslated each valuation date (830-946-45-7 through 45-9).","Forward exchange contracts are recorded at inception at the forward rate and subsequently measured at fair value daily, with unrealized gain or loss equal to the difference between the forward-rate value and the original contracted value, reclassified to realized at settlement; a hedged security purchase and its payable are still recorded at the trade-date spot rate (830-946-45-10 through 45-12).","Interest, discount accretion/premium amortization, dividends (recorded on the ex-date), and expenses are accrued daily in the foreign currency and translated at daily spot rates (weekly or monthly averages acceptable if rates are not volatile), with the related receivable/payable retranslated daily (830-946-45-25, 45-28, 45-31, 45-35).","Nonreclaimable withholding tax is accrued with the related income when the rate is fixed and known and shown parenthetically or as a contra item in the income section; reclaimable tax is recorded as a receivable, not an expense (830-946-45-34, 45-39)."],"categories":["Foreign currency","Industry-specific","Presentation","Disclosure"],"audience_level":"advanced","student_note":"Exam questions here hinge on the elective nature of \"isolating\" the currency component of investment gains—many students wrongly assume separation is mandatory, when the rule is only that the fund disclose which practice it uses. Also remember that acquiring foreign currency never creates a gain or loss; only disbursement (or revaluation) does.","related_topics":["830-10","830-20","946-10","946-320","946-830","820"],"key_concepts":["functional currency","spot rate translation","realized vs. unrealized foreign currency gain or loss","forward exchange contract","foreign withholding tax","investment company net asset value","trade date versus settlement date","discount accretion and premium amortization"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e82acde2508a8681cc17d275470a0ddc5d0ddc95a047372631cc49c5fd47eb6","downloaded_from":"2026-09-10T01:47:48.746Z","last_downloaded_at":"2026-09-10T01:48:09.816Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"830-20","title":"Foreign Currency Transactions","topic_title":"Foreign Currency Matters","score":0.7775,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa52a6110035f41d96373fabd27e3a12fa71f7581ba774ad7c7c5053a32905c8","downloaded_from":"2026-09-10T01:46:33.561Z","last_downloaded_at":"2026-09-10T01:47:07.110Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"830-30","title":"Translation of Financial Statements","topic_title":"Foreign Currency Matters","score":0.7396,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:57e36b3475ead667e9afdd2c32243f194ca82a2089caef17ca4ccdb5eb90b8ae","downloaded_from":"2026-09-10T01:47:09.290Z","last_downloaded_at":"2026-09-10T01:47:45.334Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"220-946","title":"Financial Services—Investment Companies","topic_title":"Income Statement—Reporting Comprehensive Income","score":0.7378,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68e8b1b7cee53dfe5793723d4c21efc38bf0f7007ea2f8c0efde4801d56857b9","downloaded_from":"2026-09-09T23:06:14.562Z","last_downloaded_at":"2026-09-09T23:06:52.794Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"946-20","title":"Investment Company Activities","topic_title":"Financial Services—Investment Companies","score":0.7164,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d5da923e97bf3e1d9a60cd75ca44dc43d180ebad3a85e470dad1d89e38d7f19","downloaded_from":"2026-09-10T02:19:28.974Z","last_downloaded_at":"2026-09-10T02:20:03.597Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"320-10","title":"Overall","topic_title":"Investments—Debt Securities","score":0.7093,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce7b8a0f7b86c816d2b3df1a163b967a61b7cb266794d4ca0fdf668243884847","downloaded_from":"2026-09-09T23:34:37.849Z","last_downloaded_at":"2026-09-09T23:35:28.596Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"310-942","title":"Financial Services—Depository and Lending","topic_title":"Receivables","score":0.7042,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:932af8619de793ff20b04c067c1483b028cc3ff679586e4b412739cd1568ff79","downloaded_from":"2026-09-09T23:28:59.076Z","last_downloaded_at":"2026-09-09T23:29:40.889Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"830-30","title":"Translation of Financial Statements","topic_title":"Foreign Currency Matters","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3e83986e68bdcaeb8bf1cce4677a52b3f8a98a59e39d6c3dae3a102eab3f4e1","downloaded_from":"2026-09-10T01:47:09.290Z","last_downloaded_at":"2026-09-10T01:47:45.334Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"832-10","title":"Overall","topic_title":"Government Assistance","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6dff16f0e4ee0650354d51e930104463984764ef0fa1ce2cc568bffcac1f95d","downloaded_from":"2026-09-10T01:48:12.488Z","last_downloaded_at":"2026-09-10T01:48:40.475Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec2c846e11ab802d98ff6df8bbd3df252aca6de09e64693dcc58fc3bdd66407f","downloaded_from":"2026-09-10T01:47:48.746Z","last_downloaded_at":"2026-09-10T01:48:09.816Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"paragraphs":194,"summary":"ASC 830 governs accounting for foreign currency, built on the functional currency concept: each entity measures its assets, liabilities, and operations in the currency of the primary economic environment in which it operates (830-10-45-2), determined by weighing the cash flow, sales price, sales market, expense, financing, and intra-entity indicators of 830-10-55-5. From that foundation, 830-20 handles transactions denominated in a currency other than the functional currency—recorded at the transaction-date rate, remeasured at each balance sheet date at the current rate, with transaction gains and losses in net income except for economic hedges of a net investment and long-term-investment-nature intra-entity balances (830-20-35-2, 35-3)—while 830-30 handles translation of a foreign entity's statements into the reporting currency, with assets and liabilities at the balance sheet rate, income items at rates on the dates recognized, and translation adjustments in OCI (the CTA), released to earnings only upon sale or complete or substantially complete liquidation (830-30-45-3, 45-4, 40-1). Special rules override the model for highly inflationary economies, which require remeasurement as if the reporting currency were the functional currency (830-10-45-11), and 830-946 gives investment companies detailed, largely elective rules for isolating the foreign currency component of gains and losses (830-946-45-4, 50-1). The single most important idea: identify the functional currency first, then remeasure (gains/losses to income) before you translate (adjustments to OCI).","concepts":["functional currency","reporting currency translation","remeasurement at historical rates","foreign currency transaction gains and losses","cumulative translation adjustment (cta)","highly inflationary economies","net investment hedges and long-term intra-entity balances","investment company foreign currency gains"],"categories":["Foreign currency","Subsequent measurement","Presentation","Industry-specific"],"level":"intermediate","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9b383d056a13c1d1df5c8cace10d3f47ab75749109d486382c828c224afda56c","downloaded_from":"2026-09-10T01:46:09.742Z","last_downloaded_at":"2026-09-10T01:48:09.816Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}