Under IAS 21 The Effects of Changes in Foreign Exchange Rates, an entity must disclose:
I. The amount of exchange differences included in profit or loss of the period.
II. The amount of the exchange difference included directly in share capital during the period.
III. Whether a change in the functional currency has occurred.
IV. The reason for using a presentation currency that is different from the functional currency.
A) I, II, III and IV;
B) II and III only;
C) I, III and IV only;
D) I and IV only.

Question

Under IAS 21 The Effects of Changes in Foreign Exchange Rates, an entity must disclose: 
I. The amount of exchange differences included in profit or loss of the period.
II. The amount of the exchange difference included directly in share capital during the period.
III. Whether a change in the functional currency has occurred.
IV. The reason for using a presentation currency that is different from the functional currency.
A) I, II, III and IV;
B) II and III only;
C) I, III and IV only;
D) I and IV only.

Quizplus · Accepted Answer

Under IAS 21, an entity must disclose the amount of exchange differences included in profit or loss of the period (I), whether a change in the functional currency has occurred (III), and the reason for using a presentation currency that is different from the functional currency (IV). However, disclosure of the amount of exchange difference included directly in share capital (II) is not required under IAS 21. Thus, the best choice is C, as it includes the required disclosures according to IAS 21.

Under IAS 21 the Effects of Changes in Foreign Exchange