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U.S. GAAP Codification of Accounting Standards |
| U.S. GAAP Codification | Accounting Standards, ASC |
| Principles of Accounting, Intermediate Financial Accounting, U.S. GAAP Textbook |
| Accounting by Topic, Accounting Terms Dictionary |
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U.S. GAAP Accounting Standards |
| 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 |
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Codification Topic 830 Foreign Currency Matters |
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Subtopics of Codification Topic 830 830-10 Overall 830-20 Foreign currency transactions 830-30 Translation of financial statements |
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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 |
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Accounting Terms of Codification Topic 830-20 Transaction date Transaction gain or loss |
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Accounting Terms of Codification Topic 830-30 Conversion Noncontrolling interest |
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