Skip to content

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

Ind AS 21 Appendix C draws attention to guidance in other Indian Accounting Standards. According to the notes on the Standard, what is the purpose of this appendix, and what is its relationship to Ind AS 21's own requirements?

Appendix C was included to draw attention to guidance already available in other Indian Accounting Standards that is relevant to the topic in Ind AS 21. It is a cross-reference aid and does not create new recognition rules or override the Standard.

  1. AIt creates new recognition rules for exchange differences that override the body of Ind AS 21
  2. BIt lists tax rates applicable to foreign exchange gains
  3. CIt adds the Ind AS 21 reference numbers of IAS 21 paragraphs that were deleted
  4. DIt draws attention to guidance material already available in other Ind AS that is relevant to the topic in Ind AS 21, rather than adding new rulesCorrect

Explanation

Appendix C, 'References to matters contained in other Indian Accounting Standards', was included to draw attention to guidance already available in other Ind AS that is relevant to Ind AS 21. It is a signpost, not a source of new rules, and it does not override the Standard or deal with taxes. Retained paragraph numbers 58-60J are a separate matter.

Did you get it right without looking?

One question tells you little. A timed set on The Effects of Changes in Foreign Exchange Rates (Ind AS 21) shows your real accuracy, how long you take and where you lose marks.

Practise The Effects of Changes in Foreign Exchange Rates (Ind AS 21)Free diagnostic mock

More The Effects of Changes in Foreign Exchange Rates (Ind AS 21) questions