Skip to content

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

Ganga Pharma Ltd, in preparing its financial statements, wants to find guidance on foreign-currency matters that sits in other Indian Accounting Standards but is relevant to Ind AS 21. Which part of Ind AS 21 is meant to draw attention to such guidance?

Appendix C, titled references to matters contained in other Indian Accounting Standards, is included in Ind AS 21 to draw attention to guidance in other Ind AS relevant to the topic. Appendix 1 only compares the Standard with IAS 21.

  1. AAppendix C, References to matters contained in other Indian Accounting StandardsCorrect
  2. BAppendix 1, Comparison with IAS 21
  3. CThe definition of functional currency
  4. DThe transitional provisions of Ind AS 21

Explanation

Appendix C was included in Ind AS 21 to draw attention to guidance already available in other Ind AS that is relevant to the topic. Appendix 1 only compares Ind AS 21 with IAS 21 and is not part of the Standard. Transitional provisions are in Ind AS 101.

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