Wiley GAAP: Financial Statement Disclosure Manual

53ASC 830 FOREIGN CURRENCY MATTERS

1. Authoritative Literature
   1. Subtopics
   2. Scope and Scope Exceptions
   3. Determining the Functional Currency
   4. Translation When a Foreign Entity Maintains Financial Records in Its Functional Currency
      1. Current Rate Method
   5. Translation When a Foreign Entity Maintains Financial Records in a Currency Other Than Its Functional Currency
      1. Remeasurement Method
   6. Cessation of Highly Inflationary Condition
   7. Applying ASC 740 to Foreign Entity Financials Restated for General Price Levels
   8. Application of ASC 830 to an Investment to Be Disposed of That Is Evaluated for Impairment
   9. Foreign Operations in the United States
   10. Translation of Foreign Currency Transactions
2. Practice Alert
3. Presentation and Disclosure Requirements
   1. Presentation
   2. Disclosure
4. Presentation and Disclosure Examples
   1. Example 53.1: Foreign Currency
   2. Example 53.2: Foreign Currency Translation

AUTHORITATIVE LITERATURE

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., U.S. dollars). Preparing financial statements in a single currency requires the entity to recognize and measure changes in the relationship between different units of currency. The GAAP governing the translation of foreign currency financial statements and the accounting for foreign currency transactions are found in ASC 830.

The guidance in ASC 830 was issued in 1981 and has not changed ...