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CMA Final · Corporate Financial Reporting · The Effects of Changes in Foreign Exchange Rates (Ind AS 21)

A company adopting Ind AS for the first time wants to know where transitional provisions relating to Ind AS 21 are found. According to the comparison with IAS 21, which statement is correct?

Ind AS 21 omits IAS 21's transitional provisions because all relevant Ind AS transitional provisions are included in Ind AS 101, First-time Adoption of Indian Accounting Standards, which corresponds to IFRS 1. A first-time adopter therefore consults Ind AS 101.

  1. AThe transitional provisions of IAS 21 are not repeated in Ind AS 21 because the relevant ones are placed in Ind AS 101Correct
  2. BThey are included in full within Ind AS 21 itself, as in IAS 21
  3. CThey are placed in Ind AS 8 on accounting policies and errors
  4. DThey are not provided anywhere under Ind AS

Explanation

The comparison states that transitional provisions in IAS 21 are not given in Ind AS 21, since all transitional provisions related to Ind AS, where considered appropriate, are included in Ind AS 101, corresponding to IFRS 1. Hence the first-time adopter looks to Ind AS 101, not Ind AS 21 or Ind AS 8.

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