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

Konkan Marine Ltd's finance team asks what Appendix C of Ind AS 21 is meant to do. Which description is correct?

Appendix C of Ind AS 21 is titled references to matters contained in other Indian Accounting Standards. It draws attention to guidance already available in other Ind ASs that is also relevant to the topic covered by Ind AS 21.

  1. AIt draws attention to guidance already available in other Ind ASs that is relevant to Ind AS 21 topicsCorrect
  2. BIt sets out transitional provisions for first-time adopters
  3. CIt gives illustrative examples of translation computations
  4. DIt replaces the definitions in the main body of the Standard

Explanation

Appendix C, References to matters contained in other Indian Accounting Standards, was included to draw attention to guidance material already in other Ind ASs that is relevant to the topic in Ind AS 21. Transition provisions sit in Ind AS 101, and it does not provide computations or definitions.

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