📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Which is true about treatment of exchange differences on

      foreign currency monetary items under Ind AS 21?
      A All exchange differences go directly to equity always Correct Answer Incorrect Answer
      B Exchange differences on foreign currency borrowings used to finance a qualifying asset may be capitalised as part of borrowing cost to the extent they are regarded as an adjustment to interest cost Correct Answer Incorrect Answer
      C Exchange differences are never recognised in P&L Correct Answer Incorrect Answer
      D Exchange differences are always presented as OCI only Correct Answer Incorrect Answer

      Solution

      Ind AS 21 allows exchange differences on foreign currency borrowings to be treated as an adjustment to interest costs and capitalized as part of the cost of a qualifying asset, in specific circumstances.

      Practice Next
      More Accounts Questions
      ask-question