Summary of Statement No. 1

Disclosure of Foreign Currency Translation Information


This Statement requires companies to disclose

  1. information about which accounts are translated at current rates and which are historical rates and
  2. their method of accounting for exchange adjustments, i.e., whether those gains and losses are recognized in income in the period in which exchange rates changed or whether they are deferred for later recognition. Disclosures about total amounts of gains and losses either recognized currently or deferred also are required.