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

Under Ind AS 21, which additional disclosure does Ind AS require, compared with IAS 21, when the functional currency of the reporting entity or of a significant foreign operation changes?

Ind AS 21 requires the date of change in functional currency to be disclosed, in addition to the fact of the change and the reason for it. IAS 21 asks only for the fact and the reason, so the date is the extra Ind AS requirement.

  1. AThe date of change in functional currency, along with the fact of the change and the reason for itCorrect
  2. BOnly the fact of the change and the reason for it
  3. CThe cumulative exchange difference recognised in profit or loss since incorporation
  4. DThe average exchange rate for the last five years

Explanation

The Appendix 1 comparison with IAS 21 says IAS 21 requires disclosure of the fact of the change and its reason. Ind AS 21 additionally requires disclosure of the date of change in functional currency. The option mentioning only fact and reason describes IAS 21, not Ind AS 21.

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