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

A student reading Ind AS 21 notices that paragraphs 58 to 60J are numbered but have no text. Which explanation is correct according to the comparison with IAS 21?

Paragraphs 58 to 60J of IAS 21 deal with effective date and transition, so they are not included in Ind AS 21. Their paragraph numbers are retained only to keep numbering consistent with IAS 21, and transitional provisions sit in Ind AS 101.

  1. AThey were deleted because Ind AS does not allow foreign currency translation
  2. BThey deal with hedge accounting, covered in Ind AS 109
  3. CThey relate to effective date and transition and are not included, but the numbers are retained to match IAS 21Correct
  4. DThey relate to hyperinflation and are awaiting notification

Explanation

The appendix states that paragraphs 58-60J of IAS 21 are not included because they relate to effective date and transition. Their numbers are retained so that paragraph numbering stays consistent with IAS 21. Transition matters are covered in Ind AS 101.

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