Wiley GAAP 2021, 2nd Edition

53ASC 830 FOREIGN CURRENCY MATTERS

1. ASC 830, Foreign Currency Matters
2. Perspective and Issues
   1. Subtopics
   2. Scope and Scope Exceptions
   3. Overview
3. Definitions of Terms
4. Concepts, Rules, and Examples
   1. Determining the Functional Currency
   2. Translation When Foreign Entity Maintains Financial Records in Its Functional Currency
      1. Current Rate Method
   3. Translation When a Foreign Entity Maintains Financial Records in a Currency Other Than Its Functional Currency
      1. Remeasurement Method
   4. Examples
      1. Example of the Current Rate Method
      2. Example of the Remeasurement Method
      3. Cessation of Highly Inflationary Condition
      4. Applying ASC 740 to Foreign Entity Financials Restated for General Price Levels
      5. Application of ASC 830 to an Investment to Be Disposed of That Is Evaluated for Impairment
   5. Foreign Operations in the United States
   6. Translation of Foreign Currency Transactions
      1. Example of Foreign Currency Transaction Translation
   7. Intercompany Transactions and Elimination of Intercompany Profits
      1. Example of Intercompany Transactions Involving Foreign Exchange
5. Accounts to Be Remeasured Using Historical Exchange Rates

ASC 830, FOREIGN CURRENCY MATTERS

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 ...