Home › CA Final › financialreporting › Ind AS 21 — Foreign Currency Transactions: Functional Currency Determination, Scope, Definitions › Ind AS 21 does NOT apply to:
Ind AS 21 does NOT apply to:
AAll of the above
BHedge accounting for foreign currency items (Ind AS 109 applies)
CTranslation of cash flows of a foreign operation in the cash flow statement (Ind AS 7 applies)
DForeign currency derivatives covered by Ind AS 109
Answer & Solution
Correct answer: A. All of the above
Ind AS 21 paragraph 5: explicitly excludes Ind AS 109 derivatives, hedge accounting, and CF statement translation. Also long-term FX monetary items under Ind AS 101 first-time-adoption exemption.
Related questions
Long-term foreign-currency monetary items for which Ind AS 101 first-time-adoption EXEMPTIUnder Ind AS 21, MONETARY ITEMS are:An entity changes its FUNCTIONAL CURRENCY because the primary economic environment has subAn entity is undecided between two possible functional currencies. Per Ind AS 21, the secoIdentify the statement about functional vs presentation currency under Ind AS 21 that is IAdditional factors specific to a FOREIGN OPERATION (subsidiary, branch, associate, JV) in When the indicators are MIXED and functional currency is not obvious, Ind AS 21 requires mUnder Ind AS 21, the PRIMARY indicators for functional currency are: