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Long-term foreign-currency monetary items for which Ind AS 101 first-time-adoption EXEMPTION has been availed are:
ARestated at first-time adoption only
BRequired to be re-translated each period under Ind AS 21
COUTSIDE the scope of Ind AS 21 — the entity may continue to apply the previously chosen accounting policy under the exemption
DWithin the scope of Ind AS 21
Answer & Solution
Correct answer: C. OUTSIDE the scope of Ind AS 21 — the entity may continue to apply the previously chosen accounting policy under the exemption
Ind AS 21 paragraph 5(c) explicitly excludes long-term FX monetary items where the Ind AS 101 first-time-adoption exemption has been claimed. The entity continues the previously chosen treatment (e.g. amortisation of FX differences to retained earnings over the life of the item).
Related questions
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