As a result of the globalization of commerce and capital markets, business, investment and capital formation transactions are being conducted in different currencies throughout the world. Enterprises that report financial results in one currency may have branches or subsidiaries operating in different currency environments. Those businesses may, in turn, engage in transactions denominated in currencies different from the operating currency. In addition, the global economic conditions have resulted in greater currency volatility and the taxation of currency movements and transactions varies by jurisdiction further complicates the financial reporting process.Accordingly, it is more important than ever for multinational enterprises to understand, and continually assess, the income tax accounting for currency movements and transactions to manage currency risks. Download this publication to learn more about key considerations in applying U.S. GAAP with respect to foreign currency income tax reporting. This publication is designed to be a reference guide to explore tax accounting for foreign currency. It begins with the “basics” and relevant areas of focus when applying Accounting Standards Codification (ASC) 830, Foreign Currency Matters and also discusses the application of ASC 740, Accounting for Income Taxes, to foreign currency.