F Ltd. is a first-time adopter of Ind AS. The date of transition is 1 st April, 20X1. On 1 st April, 20X0, it obtained a 7 year US $1,00,000 loan.…
CA Final · Financial Reporting · MTP · May 2024
F Ltd. is a first-time adopter of Ind AS. The date of transition is 1 st April, 20X1. On 1 st April, 20X0, it obtained a 7 year US $1,00,000 loan. It has been exercising the option provided in paras 46/46A of AS 11 and has been amortising the exchange differences in respect of this loan over the balance period of such loan. On the date of transition, the company intends to continue the same accounting policy with regard to amortisation of exchange differences. State which of the following true with respect to the above transaction:
Suggested Answer and Working Notes:
Correct Answer: Option (A)
F Ltd. can continue following the existing accounting policy of amortising the exchange differences in respect of loan over the balance period of such long-term liability routed through statement of profit and loss for the period
Topics: Ind AS 38
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