Transaction are outside the scope of Ind AS 21

Transaction are outside the scope of Ind AS 21

What type of transaction are outside the scope of Ind AS 21?

  • Derivative transactions and balances that are within the scope of Ind AS 109 ‘Financial Instruments’.
  • Ind AS 109 applies to many foreign currency derivatives and, accordingly, these are excluded from the scope of this Standard. However, those foreign currency derivatives that are not within the scope of Ind AS 109 (eg some foreign currency derivatives that are embedded in other contracts) are within the scope of this Standard. In addition, this Standard applies when an entity translates amounts relating to derivatives from its functional currency to its presentation currency.
  • Does not apply to hedge accounting for foreign currency items, including the hedging of a net investment in a foreign operation. Ind AS 109 applies to hedge accounting.
  • Does not apply to the presentation in a statement of cash flows of the cash flows arising from transactions in a foreign currency, or to the translation of cash flows of a foreign operation.
  • Does not also apply to long-term foreign currency monetary items for which an entity has opted for the exemption given in paragraph D13AA of Appendix D to Ind AS 101. Such an entity may continue to apply the accounting policy so opted for such long-term foreign currency monetary items.

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

Exchange differences from the presentation currency

Miscellaneous items – Ind AS 21

Transaction are covered by Ind AS 21

Recognition and measurement – 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