Wiley Practitioner's Guide to GAAP 2022

53ASC 830 FOREIGN CURRENCY MATTERS

• 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

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 830‐10 provides guidance on foreign currency transactions and translations of financial statements and on how ...