FASB No. 8

FASB No. 8

U.S. accounting standard that requires US firms to translate their foreign affiliates' accounts by the temporal method; that is, reporting gains and losses from currency fluctuations in current income. It was in effect between 1975 and 1981 and became the most controversial accounting standard in the US. It was replaced by FASB No. 52 in 1981.

FASB No. 8

An FASB rule requiring transactions in foreign currencies be reported according to their historical cost assuming the current, market exchange rate. This rule was quite controversial and FASB No. 8 was replaced by FASB No. 52 in 1981.