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

Ranjit Industries Ltd's compliance team notices that Ind AS 21 numbering skips content that IAS 21 carries for effective date and transition (paragraphs 58-60J). Which statement best explains the treatment in Ind AS 21?

Paragraphs 58-60J of IAS 21 deal with effective date and transition and are not included in Ind AS 21. However, the paragraph numbers are retained so that Ind AS 21 numbering stays consistent with IAS 21, so later paragraphs are not renumbered.

  1. AThose paragraphs are not included, but the numbers are retained to stay consistent with IAS 21 paragraph numberingCorrect
  2. BThose paragraphs are included fully but renumbered
  3. CThose paragraphs are deleted and later paragraphs renumbered sequentially
  4. DThose paragraphs are replaced by identical text in Ind AS 1

Explanation

Paragraphs 58-60J of IAS 21 relate to effective date and transition and are not included in Ind AS 21. Their numbers are retained so that paragraph numbering stays consistent with IAS 21. Renumbering is therefore not done.

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