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

Which of the following is an additional disclosure that Ind AS 21 requires, over and above what IAS 21 requires, when there is a change in the functional currency of the reporting entity or of a significant foreign operation?

Ind AS 21 additionally requires disclosure of the date of change in functional currency, besides the fact and the reason for the change that IAS 21 already requires. The other options are not additional disclosures under the standard.

  1. AThe date of change in functional currencyCorrect
  2. BThe average exchange rate for the preceding five years
  3. CThe name of the bank through which the conversion was undertaken
  4. DThe tax effect of the change on the foreign operation

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 change in functional currency. The other options are not disclosures prescribed in this comparison.

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