Exchange differences arising from long term foreign currency monetary items recognized in financial statements immediately before or after the beginning of the first Indian AS financial reporting period may qualify for an exemption. If the differences arose before the period, the exemption is available and the company can continue its previous exchange difference accounting policy. If the differences arose after the period, no exemption applies and the company cannot maintain its previous policy.

1. IND AS Transition
ALERT TOPIC-1
A-81,Ground Floor, Sector
4, Noida-201301.
team@ecapartners.in
Issue: Exchange differences arising from translation of long term foreign currency
monetary items recognized in the financial statements for the period ending:
Immediately before the beginning
of the first Indian AS financial
reporting period as per the
previous GAAP.
Immediately after the beginning of
the first Indian AS financial
reporting period as per the
previous GAAP
* Exemption under paragraph D13AA of
Indian AS 101 is available.
*Company can continue the policy adopted
for accounting exchange differences.
* Exemption under paragraph D13AA of
Indian AS 101 is not available.
*Company can not continue the policy
adopted for accounting exchange
differences.
Response
Situation