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

Which statement correctly describes how Ind AS 21 differs from IAS 21 in its treatment of transitional provisions?

Ind AS 21 does not contain IAS 21's transitional provisions. All transitional provisions relating to Indian Accounting Standards, where considered appropriate, are in Ind AS 101, First-time Adoption of Indian Accounting Standards, which corresponds to IFRS 1.

  1. AInd AS 21 reproduces all IAS 21 transitional provisions word for word
  2. BInd AS 21 omits them because all transitional provisions for Ind AS are placed in Ind AS 101, First-time Adoption of Indian Accounting StandardsCorrect
  3. CInd AS 21 omits them because no transition is permitted to Ind AS
  4. DInd AS 21 moves them to Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors

Explanation

The comparison with IAS 21 states that transitional provisions are not given in Ind AS 21. All transitional provisions for Ind AS, where considered appropriate, are included in Ind AS 101, which corresponds to IFRS 1. Ind AS 8 is not named as the home for these provisions.

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