Assertion (A): Under Ind AS 21, the functional currency of an entity is the currency of the primary economic environment in which the entity operates. Reason (R): The presentation currency can be different from the functional currency, and financial statements can be translated into any currency for presentation. Choose the correct option.
A. A is false but R is true
B. A is true but R is false
C. Both A and R are true and R is the correct explanation of A
D. Both A and R are true but R is NOT the correct explanation of A
Answer: Option D
Solution (By JKSSB Mock Tests)
Both statements are correct as per Ind AS 21. The functional currency is based on the primary economic environment. The presentation currency is just the currency in which the financials are displayed, and it can be different from the functional currency. R does not explain A; they are two separate concepts.
No comments yet. Be the first to start the discussion!