This course provides an overview of the functional currency concept and its role in applying the foreign currency guidance in ASC 830. It begins with a discussion of how the functional currency is determined for each foreign subsidiary or operation and the economic factors that should be considered, including cash flows, sales, expenses, financing, and relationships with the parent entity. The course also explains how to evaluate changes in functional currency and how the guidance applies when a foreign operation operates in a highly inflationary economy. Throughout the course, you'll gain a practical understanding of the judgment involved in determining functional currency and applying the related requirements under ASC 830.
Course Publication Date:
August 22, 2026
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$10.00!
| Author: | Kelen Camehl |
| Course No: | ACT-FUNCURRDET-86906 |
| Recommended CPE: | 1.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Basic |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Accounting
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Learning Objectives
- Identify the role of functional currency under ASC 830.
- Determine the functional currency of a foreign subsidiary or operation.
- Identify factors used to evaluate and conclude on functional currency.
- Recognize the accounting impact of changes in functional currency and highly inflationary economies.