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

Tarang Ltd's accountant makes four statements about the differences between Ind AS 21 and IAS 21. (i) Ind AS 21 adds a disclosure of the date of change in functional currency. (ii) Ind AS 21 uses 'balance sheet' rather than 'statement of financial position'. (iii) Ind AS 21 carries its own transitional provisions replacing those in IAS 21. (iv) Ind AS 21 includes paragraph 7AA scoping out certain long-term foreign currency monetary items. Which statements are correct?

Statements (i), (ii) and (iv) are correct: the date of change disclosure, the 'balance sheet' terminology and paragraph 7AA. Statement (iii) is wrong because transitional provisions are not in Ind AS 21 but in Ind AS 101.

  1. A(i), (ii) and (iii) only
  2. B(i), (ii) and (iv) onlyCorrect
  3. C(ii), (iii) and (iv) only
  4. D(i), (iii) and (iv) only

Explanation

Statement (i) is correct as Ind AS 21 requires the date of change. (ii) is correct as terminology differs. (iv) is correct as paragraph 7AA was inserted for the D13AA exemption. (iii) is wrong because IAS 21 transitional provisions are not given in Ind AS 21; they sit in Ind AS 101.

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