Question

Which is true about treatment of exchange differences on foreign currency monetary items under Ind AS 21?

Q: Answer-Which is true about treatment of exchange differences on foreign currency monetary items under Ind A...

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.

A All exchange differences go directly to equity always

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

C Exchange differences are never recognised in P&L

D Exchange differences are always presented as OCI only

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