Exchange differences from the presentation currency

Exchange differences from the presentation currency

How are the exchange differences arising from the presentation currency dealt with?

  • Exchange differences are recognised in other comprehensive income.
  • These exchange differences are not recognised as income or expenses for the period because the changes in exchange rates have little or no direct effect on the present and future cash flows from the entity’s operations.
  • The cumulative amount of the exchange differences is presented in a separate component of equity until disposal of the foreign operation.
  • When the exchange differences relate to a foreign operation that is consolidated but not wholly-owned, accumulated exchange differences arising from translation and attributable to non-controlling interests are allocated to, and recognised as part of, non-controlling interests in the consolidated statement of financial position.

Ind AS Accounting Standards

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

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

Difference between FX translation and FX revaluation

Carrying amount of a monetary item

Carrying amount of a non-monetary item