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

Practice Next

More Accounts Questions

What does SAP stand for?
How is working capital provided by banks calculated under the Turnover Method?
On Jan 1, 2017 the position of V. Mathur was as follows: Inventory in hand Rs. 2400; Bills payable Rs. 400; Cash at Bank Rs. 1800; Plant and machinery ...
Which of the following is an example of “tangible assets”?
ABC Ltd. has fixed operating costs of ₹50 lakh and interest cost of ₹20 lakh. It earned EBIT of ₹80 lakh on sales of ₹200 lakh. Calculate the operating and...
A software company enters into a ₹10 lakh contract including installation and training. Installation is ₹8 lakh and training ₹2 lakh. Installation complete...
If a firm’s interest coverage ratio falls from 6x to 2x over a year, it indicates:
An audit which is authorized, governed and made compulsory under law is known as:
Under Ind AS 116, which of the following is true for lessees?
The National Trade Portal (NTP) for issuance of bills and trade documentation was designed to facilitate:

Hey! Ask a query

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

Detailed Solution

More Accounts Questions

Hey! Ask a query

Please Register/Login