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

Indian Ind AS 21 differs from IAS 21 in the disclosure required when the functional currency of the reporting entity or of a significant foreign operation changes. Besides disclosing that fact and the reason for the change, what additional disclosure does Ind AS 21 require?

Ind AS 21 requires, in addition to the fact of the change in functional currency and the reason for it, disclosure of the date of change. This is the extra requirement compared with IAS 21, which asks only for the fact and the reason.

  1. AThe date of change in functional currencyCorrect
  2. BThe exchange rate gain or loss on the change, quantified in rupees
  3. CThe auditor's opinion on the change
  4. DThe name of the central bank that approved the change

Explanation

The comparison with IAS 21 in Appendix 1 states that IAS 21 requires disclosure of the fact and the reason for the change in functional currency, whereas Ind AS 21 additionally requires disclosure of the date of change. The other options are not requirements of the Standard.

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