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

Ganga Infra Ltd, adopting Ind AS for the first time, asks where the transitional provisions relating to foreign currency translation are found. The CFO suggests they are in Ind AS 21 as in IAS 21. Which view is correct under the Standard's comparison with IAS 21?

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

  1. AThe CFO is right; Ind AS 21 reproduces IAS 21 transitional provisions in full
  2. BThe transitional provisions of IAS 21 are not in Ind AS 21; all Ind AS transitional provisions, where appropriate, are in Ind AS 101, corresponding to IFRS 1Correct
  3. CThey are in Ind AS 8, which deals with changes in policies
  4. DThey are not applicable to Indian entities at all

Explanation

The comparison states that IAS 21's transitional provisions are not given in Ind AS 21 because all relevant Ind AS transitional provisions are in Ind AS 101, corresponding to IFRS 1. Hence the CFO's view is wrong, and Ind AS 8 is not the stated location.

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