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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 given in IAS 21. Which statement is correct as per the comparison with IAS 21?

The statement is incorrect. Ind AS 21 omits IAS 21's transitional provisions because all transitional provisions relating to Ind AS, wherever 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, so Ind AS 21 omits those of IAS 21Correct
  2. BTransitional provisions are in Ind AS 8, so Ind AS 21 omits them
  3. CInd AS 21 retains IAS 21's transitional provisions in full
  4. DTransitional provisions are in Ind AS 1 only

Explanation

The comparison notes that IAS 21 transitional provisions are not given in Ind AS 21 because all transitional provisions for Ind AS, where considered appropriate, are in Ind AS 101, corresponding to IFRS 1.

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