Question
Beta Ltd., an Indian company, operates a 100% subsidiary in the UAE. The subsidiary manufactures and sells products only in the Gulf region, incurs costs and revenues in AED, borrows locally in AED, and its management makes decisions independently of the parent. However, the parent prepares consolidated financials in INR. What should be the functional currency of the UAE subsidiary as per Ind AS 21?
More Foreign Exchange Questions
- If USD/INR = 83.00 and GBP/USD = 1.25, what is the GBP/INR cross rate?
- The theory that states the exchange rate between two currencies is determined by the relative price levels in the two countries is the:
- A firm in India has to pay €5 million in 3 months. They expect the rupee to depreciate against the euro. Which of the following hedging tools will best pro...
- The difference between the buying and selling rates quoted by a dealer is called:
- A company revalues its foreign currency receivable at the closing rate on balance sheet date. Under which Ind AS is this required?
- A company imports machinery payable in USD after 6 months. If the liability remains unpaid at year-end and the exchange rate has increased, how should the ...
- A foreign subsidiary reports its accounts in USD. On consolidation, the holding company translates the figures into INR. Which rate should be used for inco...
- It is essential to standardize the accounting principles and policies in order to ensure
- Covered Interest Arbitrage involves:
- An Indian company receives a large export order payable in USD after 6 months. The management fears rupee appreciation in this period. To hedge the risk, t...
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
- 200 Questions with Detailed Solutions
- Section-wise Coverage (GA, English, Quant & Reasoning)