Carrying amount of a monetary item
How is the carrying amount of a monetary item determined on a valuation date for a foreign currency transaction?
The carrying amount of an item is determined in conjunction with other relevant Standards. For example, property, plant and equipment may be measured in terms of fair value or historical cost in accordance with Ind AS 16 ‘Property, Plant and Equipment’. Whether the carrying amount is determined on the basis of historical cost or on the basis of fair value, if the amount is determined in a foreign currency it is then translated into the functional currency in accordance with Ind AS 21 only. Where the carrying amount is determined by comparing two or more amounts, the carrying amount is the lower of cost and net realisable value in accordance with Ind AS 2 ‘Inventories’. Similarly, as per Ind AS 36 ‘Impairment of Assets’, the carrying amount of an asset for which there is an indication of impairment is the lower of its carrying amount before considering possible impairment losses and its recoverable amount
Foreign operations – Ind AS 21
Exchange differences on monetary items
Exchange differences from non-monetary items
Difference between monetary and non-monetary items
Treatment of exchange differences – Ind AS 21
Presentation Currency – Ind AS 21
Objectives, Scope & Benefits Ind AS 21
Functional Currency – Ind AS 21
Exchange differences from the presentation currency
Miscellaneous items – Ind AS 21
Transaction are covered by Ind AS 21
Recognition and measurement – Ind AS 21
Transaction are outside the scope of Ind AS 21
Financial statements presented in any currency
