Skip to content

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

A student states that Ind AS 21 contains its own transitional provisions for first-time application, mirroring those in IAS 21. Based on the Comparison with IAS 21, which statement is correct?

Ind AS 21 does not contain the IAS 21 transitional provisions. All transitional provisions related to Indian Accounting Standards, wherever considered appropriate, are included in Ind AS 101, First-time Adoption of Indian Accounting Standards, which corresponds to IFRS 1.

  1. ATransitional provisions are in Ind AS 101, not Ind AS 21Correct
  2. BTransitional provisions are in Ind AS 8, not Ind AS 21
  3. CInd AS 21 retains all IAS 21 transitional provisions unchanged
  4. DTransitional provisions are in Ind AS 1, not Ind AS 21

Explanation

The Comparison states that IAS 21 transitional provisions are not given in Ind AS 21 because all transitional provisions for Ind AS, where appropriate, are in Ind AS 101 First-time Adoption. Ind AS 8 and Ind AS 1 are not named as the home of these provisions.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 21 The Effects of Changes in Foreign Exchange Rates shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 21 The Effects of Changes in Foreign Exchange RatesFree diagnostic mock

More Ind AS 21 The Effects of Changes in Foreign Exchange Rates questions