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

Delta Ltd's financial statements refer to Appendix C of Ind AS 21. What is the purpose of Appendix C?

Appendix C of Ind AS 21, titled references to matters contained in other Indian Accounting Standards, draws attention to guidance already available in other Ind AS that is also relevant to the topic covered in Ind AS 21. It does not contain transitional rules or rates.

  1. AIt draws attention to guidance in other Ind AS that is relevant to the topic in Ind AS 21Correct
  2. BIt sets out the transitional provisions for first-time adopters
  3. CIt prescribes the exchange rates to be used for translation
  4. DIt lists the disclosures required for hyperinflationary economies only

Explanation

Appendix C, 'References to matters contained in other Indian Accounting Standards', has been included to draw attention to guidance already available in other Ind AS that is relevant to Ind AS 21. Transitional provisions are in Ind AS 101 instead.

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