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

Himalaya Foods Ltd's Ind AS 21 is compared with IAS 21 for presentation. Paragraphs 58-60J of IAS 21 on effective date and transition are not included in Ind AS 21. Which statement best describes how Ind AS 21 handles the numbering of those paragraphs?

Ind AS 21 omits the content of paragraphs 58-60J because they deal with effective date and transition, yet it retains those paragraph numbers. This keeps the numbering consistent with IAS 21 so cross-references line up.

  1. AThe paragraph numbers are retained to keep consistency with IAS 21Correct
  2. BThe paragraphs are deleted and later paragraphs renumbered
  3. CThe paragraphs are replaced with Ind AS 101 text under the same numbers
  4. DThe paragraphs are moved to Appendix C

Explanation

The Comparison says paragraphs 58-60J are not included because they relate to effective date and transition, but the paragraph numbers are retained to maintain consistency with IAS 21 numbering. Renumbering would defeat that consistency, and Appendix C only carries references to matters in other Ind ASs.

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