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 true but R is false
B.Both A and R are true but R is NOT the correct explanation of A
C.A is false but R is true
D.Both A and R are true and R is the correct explanation of A
Explanation:
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.
Explanation:
Marginal cost represents the total variable cost of production, which is the sum of prime cost (direct material, labor, expenses) and variable overheads.
S1: Ind AS 115 uses a five-step model for revenue recognition. S2: The five steps include identifying the contract, performance obligations, transaction price, allocating price, and recognizing revenue. Which statement(s) is/are correct?
Explanation:
Ind AS 115 prescribes a five-step model for revenue recognition. The steps are exactly as listed: identify contract, identify performance obligations, determine transaction price, allocate price, and recognize revenue when obligations are satisfied. Both are correct.
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