Ind AS 21 Amendments Clarify Currency Exchangeability Rules for Complex Financial Reporting Scenarios in 2025

The MCA issued the Companies (Indian Accounting Standards) Amendment Rules, 2025, modifying Ind AS 21 regarding currency exchangeability. Key amendments include defining currency exchangeability, establishing criteria for assessing when a currency can be exchanged, and providing guidance on estimating spot exchange rates when a currency is not exchangeable. The amendments introduce new disclosure requirements for entities dealing with non-exchangeable currencies, effective from 1 April 2025. Entities must assess currency exchangeability at measurement dates, considering factors like administrative delays, market mechanisms, and specific exchange purposes. The rules provide comprehensive guidance on translating foreign currency transactions and managing financial reporting challenges in complex currency environments. .....

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