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

An Indian company's transition provisions on foreign exchange are queried. As per the comparison of Ind AS 21 with IAS 21, where are the transitional provisions applicable to Ind AS found, and why are IAS 21's transitional provisions not reproduced in Ind AS 21?

The transitional provisions are in Ind AS 101, First-time Adoption of Indian Accounting Standards, which corresponds to IFRS 1. Ind AS 21 therefore omits IAS 21's transitional provisions, since all relevant Ind AS transition rules are consolidated in Ind AS 101.

  1. AIn Ind AS 101, since all transitional provisions for Ind AS are included there, corresponding to IFRS 1Correct
  2. BIn Ind AS 8, because transitions are changes in accounting policy
  3. CIn the Companies Act schedule only, with no Ind AS reference
  4. DIn Ind AS 21 Appendix C, which restates every transitional rule

Explanation

Appendix 1 states the IAS 21 transitional provisions are not given in Ind AS 21 because all transitional provisions related to Indian ASs, wherever appropriate, are in Ind AS 101, which corresponds to IFRS 1. Appendix C only draws attention to guidance in other Ind ASs, so it does not restate transitional rules.

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