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

Under Ind AS 21, when an entity changes the functional currency of the reporting entity or of a significant foreign operation, which disclosure requirement goes beyond the corresponding requirement in IAS 21?

Ind AS 21 requires disclosure of the date of change in functional currency, in addition to the fact and the reason for the change that IAS 21 already requires. The date is the extra Indian requirement; the other options are not prescribed.

  1. AThe date of change in functional currency, in addition to the fact and the reason for the changeCorrect
  2. BThe average exchange rate for the year in which the change occurred
  3. CThe tax effect of the change, shown separately
  4. DThe name of the auditor who approved the change

Explanation

IAS 21 requires disclosure of the fact of the change and the reason for it. Ind AS 21 adds a requirement to disclose the date of the change in functional currency. The other options are not disclosure requirements stated in this comparison.

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