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U.S. GAAP Codification of Accounting Standards

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U.S. GAAP Accounting Standards
Codification Topic 830-30: Translation of Financial Statements

Codification Topic 830-30
Translation of Financial Statements

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

Translation of foreign currency financial statements
1. All items of financial statements are translated
--> from functional currency to reporting entity
--> using a current exchange rate

2. For assets and liabilities
--> current exchange rate at the balance sheet date

3. For revenue and expenses
--> current exchange rate at the time of recognition
--> or average rate during the period if appropriate

4. For stockholders' equity
--> historical exchange rate at the time of transaction

Translation adjustments
1. Translation adjustments incur
--> when financial statements are translated
--> from functional currency to reporting currency

2. Translation adjustments are
--> reported in other comprehensive income

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