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FASB's EITF to Address Interaction of Foreign Currency Translation Adjustments

  • By Salome J. Tinker, CPA, AFP
  • Published: 2011-08-17

This week FASB assigned its Emerging Issues Task Force (EITF) a project to take on the accounting issue related to the interaction of the accounting guidance for foreign currency translation adjustments and the guidance on non-controlling interests. The issue was added to the agenda to clarify which guidance applies to the sale of a group of assets that meet the definition of a business that is not a subsidiary.

Companies that consolidate the results of their foreign operations using local currencies are required to translate those financial statements into U.S. dollars. FASB Statement 52, Foreign Currency Translation (ASC 830, Foreign Currency Matters) addresses the accounting treatment required under U.S. generally accepted accounting principles. FASB Statement 160 (ASC 810) addresses accounting for noncontrolling interest.
 

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