Conversion of the accounting figures stated in one currency into another currency for financial reporting requirements. According to the U.S. GAAP regulations, the balance sheet items are converted at the exchange rate as on the balance sheet date, and income statement items are converted at the weighted-average exchange rate for the that year. The gains and losses resulting from the conversion are presented in the owners' equity section as a separate item. Any material change in the exchange rate occurring during the period between the financial statement date and the audit report date is disclosed in the following financial statement.