Changes in Indian Accounting Standards Rules for Companies – 2025

MCA Updates Foreign Exchange Accounting Rules for 2025
 

The Ministry of Corporate Affairs has updated Ind AS 21, focusing on foreign exchange rate changes. Effective from April 1, 2025, companies must assess if a currency is exchangeable. If not, they should estimate a suitable exchange rate based on current market conditions. This change aims to enhance clarity in financial statements involving foreign currencies.

These changes in Indian Accounting Standards Rules for companies—2025—require detailed disclosures when currencies aren't exchangeable. Companies must explain the nature of the issue, estimation methods, and related risks. The initial application doesn't require restating past data; adjustments go to retained earnings. This move aligns Indian standards with global practices, promoting transparency and consistency.


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