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U.S. GAAP Codification of Accounting Standards |
| U.S. GAAP Codification | Accounting Standards, ASC |
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U.S. GAAP
Codification of Accounting Standards |
| U.S. GAAP Codification Updates |
| Principles of Accounting, Intermediate Accounting, Advanced Accounting |
| Accounting Terms |
| Codification Topic 830-20 Foreign Currency Transactions Foreign Currency Transactions SFAS 52, December 1981 "Foreign Currency Translation" Foreign currency transactions Foreign currency transaction --> transactions denominated in the currency other than functional currency Recognition of foreign currency transactions Foreign currency transactions are recorded --> in functional currency --> using the exchange rate at the transaction date Foreign currency transaction gains and losses 1. Gains and losses due to the changes in exchange rates between (A) and (B) (A) transaction date (B) settlement date An example 1. US dollar is functional currency Transaction is denominated in Euro 2. November 1, 20x1 when €1 = $ 1.40 Sold 200 units of products at €10 per unit. Accounts receivable $2,800 Sales $2,800 3. December 15, 20x1 when €1 = $ 1.45 Collected €2000 Cash $2,900 Accounts receivable $2,800 Foreign currency transaction gain $100 Foreign currency transaction gains and losses are --> recognized in income --> except for the cases listed in (C), (D) and (E) (C) foreign currency transactions --> designated as hedges of a net investment in foreign operations --> gains and losses are reported in other comprehensive income (OCI) (D) intra-entity foreign currency transactions --> with long-term investment nature --> such transactions are considered as part of the net investment (E) changes in fair value of available for sale debt securities --> in foreign currency are --> reported in other comprehensive income (OCI) |
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Codification Topic 830 Foreign Currency Matters |
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Subtopics of Codification Topic 830 830-10 Overall 830-20 Foreign currency transactions 830-30 Translation of financial statements |
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Accounting Terms of Codification Topic 830-10 Attribute Exchange rate Foreign currency Foreign currency statements Foreign currency transactions Foreign currency translation Foreign entity Functional currency Local currency Reporting currency Reporting entity Special drawing rights Translation Translation adjustments Unit of measure |
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Accounting Terms of Codification Topic 830-20 Transaction date Transaction gain or loss |
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Accounting Terms of Codification Topic 830-30 Conversion Noncontrolling interest |
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