Statement of Financial Accounting Standards No. 52

Statement of Financial Accounting Standards No. 52

The currency translation standard currently used by US firms. It mandates the use of the current rate method. See: Statement of Financial Accounting Standards No. 8.

FASB No. 52

An FASB guideline that requires American companies to record foreign exchange items on a balance sheet according to prevailing exchange rates. Adjustments for changes to market rates are only made when they affect the company's cash flow. It replaced the Statement of Financial Accounting Standards No. 8.
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The accounting principles for foreign-currency transactions are defined in Statement of Financial Accounting Standards No. 52, "Foreign-Currency Translation," in addition to several Emerging Issues Task Force papers, including EITF 90-17, "Hedging Foreign-Currency Risks with Purchased Options"; EITF 91-1, "Hedging Intercompany Foreign-Currency Risks"; and EITF 91-4, "Hedging Foreign-Currency Risks with Complex Options and Similar Transactions." Keep in mind that economically prudent hedging transactions don't always qualify for the hedge accounting prescribed in SFAS 52.

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