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

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

Ind AS 21 requires disclosure of the fact of the change in functional currency and the reason for it, as IAS 21 does, and additionally requires the date of the change. So the date of change is the extra Ind AS requirement.

  1. AThe date of change in functional currency, in addition to the fact of the change and the reason for itCorrect
  2. BOnly the fact of the change, with the reason omitted
  3. CThe reason for the change, but not the date of change
  4. DThe cumulative exchange difference recognised since inception, but not the date

Explanation

The comparison with IAS 21 states that IAS 21 requires disclosure of the fact and the reason for the change in functional currency. Ind AS 21 additionally requires disclosure of the date of change. The option that drops the date therefore does not follow Ind AS 21.

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