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TMI BlogComparison Chart of ICDS-IV, AS-11 & IndAS-21X X X X Extracts X X X X X X X X Extracts X X X X ..... ar to Indian GAAP Functional and presentation Currency "Foreign currency" is a currency other than the reporting currency. "Reporting currency" means Indian currency except for foreign operations where it shall mean currency of the country where the operations are carried out. Foreign currency is a currency other than the reporting currency which is the currency in which financial statements are presented. There is no concept of functional currency Functional currency is the currency of the primary economic environment in which the entity operates. Foreign currency is a currency other than the functional currency. Presentation currency is the currency in which the financial statements are presented. Conversion at period- end for non- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irrevocable option for corporate entities to capitalise exchange differences on long-term foreign currency monetary items incurred for acquisition of depreciable capital assets and to amortise exchange differences on other long-term foreign currency monetary items over the life of such items but not beyond the stipulated date. Exchange differences on monetary items, that in substance, form part of net investment in a non integral foreign operation, are accumulated in a foreign currency translation reserve in the enterprise's financial statements until the disposal of the net investment, at which time they should be recognised as income or as expenses. Same as ICDS. Exchange differences arising on translation or settlement of foreign curr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and rule 115 of the Rules. Integral Foreign Operations. Translation of financial statements of a foreign operation to the reporting currency of the parent/investor depends on the classification of that operation as integral or non-integral. In the case of an integral foreign operation, monetary assets are translated at closing rate. Non-monetary items are translated at historical rate if they are valued at cost. Non-monetary items which are carried at fair value or other similar valuation are reported using the exchange rates that existed when the values were determined. Income and expense items are translated at historical/average rate. Exchange differences are taken to the statement of profit and loss. For non-integral foreign ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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