Under the one-transaction perspective for foreign currency transactions, the original amount entered in the accounting records for a foreign merchandise purchase subsequently is adjusted when the exact amount of U.S. dollars required to obtain the foreign currency for payment to the supplier is known.

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Under the one-transaction perspective, foreign currency transactions are viewed as a single event, and any changes in the exchange rate between the time of the transaction and the settlement date result in adjustments to the original transaction amount in the accounting records. This ensures that the amount recorded reflects the actual U.S. dollar cost of the foreign purchase.

Under the One-Transaction Perspective for Foreign Currency Transactions, the Original