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CA Final Ind AS 21 The Effects of Changes in Foreign Exchange Rates — practice questions — page 2

Explore 63 free Ind AS 21 The Effects of Changes in Foreign Exchange Rates questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 21 The Effects of Changes in Foreign Exchange Rates questions and exercises with answers

Showing questions 31–60 of 63.

When indicators are mixed, which indicators get priority?Read the answer and worked solution →A branch sells only parent goods and remits cash. This suggests:Read the answer and worked solution →If the functional currency is of a hyperinflationary economy, the statements are restated under which standard?Read the answer and worked solution →Can adopting the parent's functional currency avoid Ind AS 29 restatement?Read the answer and worked solution →In which currency may an entity present its financial statements?Read the answer and worked solution →Translating to presentation currency: assets and liabilities use which rate?Read the answer and worked solution →Translation differences into a presentation currency go where?Read the answer and worked solution →A subsidiary has assets FC 1,000, liabilities FC 400; closing rate FC 1 = Rs 60. Net assets in rupees?Read the answer and worked solution →A subsidiary earned FC 500 evenly; average rate was FC 1 = Rs 58. Translated income?Read the answer and worked solution →Why are translation differences kept out of profit or loss?Read the answer and worked solution →Where are cumulative translation differences held until disposal?Read the answer and worked solution →Translation differences for minority holders go where?Read the answer and worked solution →Hyperinflationary currency: all amounts are translated at which rate?Read the answer and worked solution →Can an intragroup monetary balance be eliminated hiding currency effects?Read the answer and worked solution →A foreign operation's reporting date may differ from the parent's by no more than what?Read the answer and worked solution →Goodwill on a foreign operation is in which currency, at what rate?Read the answer and worked solution →On disposal of a foreign operation, cumulative translation differences are reclassified to what?Read the answer and worked solution →A write-down of a foreign operation triggers what reclassification?Read the answer and worked solution →Which event is accounted for as a disposal of a foreign operation?Read the answer and worked solution →Partial disposal keeping control: OCI exchange differences go to whom?Read the answer and worked solution →Tax effects of exchange differences are dealt with under which Ind AS?Read the answer and worked solution →Which profit or loss exchange difference disclosure is required?Read the answer and worked solution →For OCI exchange differences held in equity, what must be disclosed?Read the answer and worked solution →If presentation and functional currencies differ, what must be stated?Read the answer and worked solution →Which area does Ind AS 21 leave to Ind AS 109?Read the answer and worked solution →Which standard covers presenting foreign currency cash flows?Read the answer and worked solution →What are the two principal issues in Ind AS 21?Read the answer and worked solution →An exchange difference arises from translating currency units at what?Read the answer and worked solution →How does Ind AS 21 define an exchange rate?Read the answer and worked solution →If a currency is not exchangeable, what must the entity do?Read the answer and worked solution →

Worked practice questions

When indicators are mixed, which indicators get priority?

  1. Financing indicators
  2. Retained receipts
  3. Price and cost indicators
  4. Parent dependence
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Correct answer: C. Price and cost indicators

Management uses judgement but ranks the primary price and cost indicators above the supporting ones.

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A branch sells only parent goods and remits cash. This suggests:

  1. Significant autonomy
  2. Local-currency finance
  3. An extension of the parent
  4. Local currency adoption
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Correct answer: C. An extension of the parent

A branch that merely sells parent goods and sends cash back is an extension of the parent, pointing towards the parent's functional currency.

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If the functional currency is of a hyperinflationary economy, the statements are restated under which standard?

  1. Ind AS 8
  2. Ind AS 16
  3. Ind AS 12
  4. Ind AS 29
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Correct answer: D. Ind AS 29

Ind AS 29 covers financial reporting in hyperinflationary economies and must be applied first.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property