U.S. GAAP, Codification of Accounting Standards, ASC - Accounting Standards Codification by FASB

U.S. GAAP Codification of Accounting Standards

U.S. GAAP-Codification

IFRS International Standards

Accounting Standards, ASC

U.S. GAAP Codification of Accounting Standards
Codification Topic 830: Foreign Currency Matters

U.S. GAAP Codification, Accounting Standards ASC,

IFRS Overview, IFRS, IAS by Topic, IFRS Dictionary

U.S. GAAP by Topic, Accounting by Topic, Securities Law Library

Codification Topic 830
Foreign Currency Matters

Foreign Currency Transactions and Translation
SFAS 52, December 1981
"Foreign Currency Translation"

Functional currency
1. Functional currency
--> the currency of the primary economic environment
--> of the entity

2. Accounting transactions are measured and recorded in functional currency

Reporting currency
Reporting currency
--> the currency used to report financial statements

Translation
If reporting currency is not functional currency
--> all items reported in financial statements are
--> translated from functional currency to reporting currency

Remeasurement
1. If accounting transactions are recorded in local currency that is not functional currency
--> remeasure accounting records from local currency to functional currency
--> then translate from functional currency to reporting currency
2. Accounting records after remeasurement
--> will be same as (1)
(1) accounting records when all transactions were recorded in functional currency

Exchange rate for remeasurement
1. For nonmonetary accounts
--> use historical rates between local currency and functional currency
2. For revenue and expenses resulted from nonmonetary accounts
--> use historical rates between local currency and functional currency
3. For monetary accounts
--> use current rate between local currency and functional currency
4. Foreign currency transaction gains and losses are also recognized

Foreign currency transaction gains and losses are
--> recognized in income
--> with some exceptions
--> as explained in the Codification Topic 830-20

Foreign currency translation adjustments are
--> reported in other comprehensive income (OCI)
--> as explained in the Codification Topic 830-30

Changes in functional currency
When functional currency changes
--> previous financial statements are not restated

International Financial Reporting Standards (IFRS)

IAS 21: The effects of changes in foreign exchange rates

Codification Topic 830
Foreign Currency Matters

Subtopics of Codification Topic 830

   830-10 Overall
   830-20 Foreign currency transactions
   830-30 Translation of financial statements

Accounting Terms of Codification Topic 830-10

   Attribute
   Exchange rate
   Foreign currency
   Foreign currency statements
   Foreign currency transactions
   Foreign currency translation
   Foreign entity
   Functional currency
   Local currency
   Reporting currency
   Reporting entity
   Special drawing rights
   Translation
   Translation adjustments
   Unit of measure

Accounting Terms of Codification Topic 830-20

Transaction date
Transaction gain or loss

Accounting Terms of Codification Topic 830-30

Conversion
Noncontrolling interest