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

Meera Industries Ltd's reporting entity considers the Ind AS 21 text. A reviewer lists differences between Ind AS 21 and IAS 21. Which listed item is NOT a difference described in Appendix 1 comparison?

The requirement to recognise all exchange differences on monetary items in other comprehensive income is not a listed difference. Appendix 1 lists the date-of-change disclosure, terminology such as balance sheet, omitted transitional provisions, and paragraph 7AA scoping out certain long-term foreign currency monetary items.

  1. AExtra disclosure of the date of change in functional currency
  2. BUse of the term 'balance sheet' instead of 'statement of financial position'
  3. CInsertion of paragraph 7AA to scope out certain long-term foreign currency monetary items
  4. DRequirement to recognise all exchange differences on monetary items in other comprehensive incomeCorrect

Explanation

Appendix 1 lists: the additional date-of-change disclosure, different terminology such as 'balance sheet', the omission of IAS 21 transitional provisions, retention of paragraph numbers 58-60J, and paragraph 7AA. No difference concerns recognising all monetary item exchange differences in other comprehensive income, so that option is not a listed difference.

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