Chapter 51ASC 830 FOREIGN CURRENCY MATTERS
Translation of Foreign Currency Financial Statements
Summary of Current Rate and Remeasurement Methods
Foreign Operations in the United States
Translation of Foreign Currency Transactions
Intercompany Transactions and Elimination of Intercompany Profits
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 applies to all entities. ASC 830-20 does not apply to derivative instruments. Preparers should look to ASC 815 for guidance on derivatives.
Overview
To facilitate the proper analysis of foreign operations by financial statement users, transactions and financial statements denominated in foreign currencies must be expressed in a common currency (i.e., US dollars). The GAAP governing the translation of foreign currency financial statements and the accounting for foreign currency transactions are found primarily in Accounting Standards ...
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