Ministry of Corporate Affairs (“MCA”) vide notification no. G.S.R. 291 (E) dated 7th May, 2025 made amendments in the Companies (Indian Accounting Standards) Rules, 2015.
The notification amended paragraphs 8 and 26, and added paragraphs 8A–8B, 19A, 57A–57B and Appendix A of Ind AS 21 “The effects of changes in foreign exchange rates”. An entity shall apply the amendments for annual reporting periods beginning on or after 1 April 2025. The date of initial application is the beginning of the annual reporting period in which an entity first applies those amendments.
The notification explains the following:
- Exchangeable definition
- Estimating the spot exchange rate when a currency is not exchangeable into another currency.
- Disclosures requirements when an entity estimates a spot exchange rate because a currency is not exchangeable into another currency
- Recognition of effect of initially applying the amendments
Paragraph 31C and point (b) of Paragraph D27 of Appendix D of Ind AS 101 are amended and Paragraph 39AI is inserted in Ind AS 101.
For details, please refer MCA notification no. G.S.R. 291 (E ) dated 7th May, 2025: https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=NTM0OTE2NzU5&docCategory=Notifications&type=open
PDF version is attached: https://www.dpncindia.com/wp-content/uploads/2025/05/Audit-update.pdf
