Search within this section
Select a section below and enter your search term, or to search all click Foreign currency
Favorited Content
4.5 Exchange rates
Publication date: 31 May 2022
us Foreign currency guide
ASC 830-20-20 provides a definition of an exchange rate.
Definition from ASC 830-20-20
Exchange Rate: The ratio between a unit of one currency and the amount of another currency for which that unit can be exchanged at a particular time.
Generally, foreign currency transactions are measured using the exchange rate on the measurement date, which is the date a transaction occurs or, in the case of monetary items, are remeasured at the end of a reporting period.
An average exchange rate may be used to recognize income and expense items earned or incurred evenly over a period. For example, interest expense payable on foreign currency debt may be recognized using an average exchange rate for the period. In some cases, average exchange rates may also be used as a practical expedient in place of measuring similar transactions at the exchange rate on the date each transaction occurred. See FX 5.5 for further information on exchange rates.
PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
Link copied
