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CA Final · Financial Reporting · Ind AS 21 The Effects of Changes in Foreign Exchange Rates

A reviewer compares Ind AS 21 with IAS 21 and lists differences. Which of the following statements about the differences is correct?

Ind AS 21 leaves out IAS 21 paragraphs 58-60J on effective date and transition while keeping their numbers, and it requires the additional disclosure of the date of change in functional currency. It uses the term balance sheet rather than statement of financial position.

  1. AInd AS 21 omits IAS 21 paragraphs 58-60J on effective date and transition but retains their numbers, and requires the date of change in functional currency to be disclosedCorrect
  2. BInd AS 21 retains paragraphs 58-60J in full but omits the disclosure of the reason for a change in functional currency
  3. CInd AS 21 uses the term 'statement of financial position' while IAS 21 uses 'balance sheet'
  4. DInd AS 21 retains IAS 21's transitional provisions and adds paragraph 7AA to remove them

Explanation

Paragraphs 58-60J are not included but their numbers are kept for consistency. The date of change is an extra disclosure. Terminology is reversed in the third option, because Ind AS uses 'balance sheet'. The other options misstate the omissions.

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