Wiley GAAP 2020

54 54 ASC 830 FOREIGN CURRENCY 
MATTERS

• Perspective and Issues
  • Subtopics
  • Scope and Scope Exceptions
  • Overview
• Definitions of Terms
• Concepts, Rules, and Examples
  • Determining the Functional Currency
  • Translation When Foreign Entity Maintains Financial Records in Its Functional Currency
    • Current Rate Method.
  • Translation When a Foreign Entity Maintains Financial Records in a Currency Other Than Its Functional Currency
    • Remeasurement Method.
  • Examples
    • 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.
    • 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
• 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 currency transactions, and
• Translation of financial statements

Scope and Scope Exceptions

ASC 830 applies to all entities. ASC 830-20 ...