51   ASC 830 FOREIGN CURRENCY MATTERS

Perspective and Issues

Subtopics

Scope and Scope Exceptions

Overview

Technical Alert

Definitions of Terms

Concepts, Rules, and Examples

Translation of Foreign Currency Financial Statements

Selection of the functional currency

Translation methods

Example of the current rate method

Example of the remeasurement method

Cessation of highly inflationary condition

Applying ASC 740 to foreign entity financials restated for general price levels

Summary of Current Rate and Remeasurement Methods

Application of ASC 830 to an investment to be disposed of that is evaluated for impairment

Foreign Operations in the United States

Translation of Foreign Currency Transactions

Example of foreign currency transaction translation

Intercompany Transactions and Elimination of Intercompany Profits

Example of intercompany transactions involving foreign exchange

Foreign Currency Hedging

Measuring hedge effectiveness

Example of hedge effectiveness measurement

Forward Exchange Contracts

Example of a forward exchange contract

The Fair Value Option

Accounts to Be Remeasured Using Historical Exchange Rates

PERSPECTIVE AND ISSUES

Subtopics

ASC 830 contains five subtopics:

  • ASC 830-10, Overall
  • ASC 830-20, Foreign Currency Transactions
  • ASC 830-30, Translation of Financial Statements
  • ASC 830-250, Statement of Cash Flows
  • ASC 830-740, Income Taxes.

ASC 830 provides guidance about

  • Foreign transaction and
  • Translation of financial statements.

Scope and Scope Exceptions

ASC 830 ...

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