MCA amends Ind AS 21 to guide firms on using estimated exchange rates when currency exchangeability is lacking. Effective April 2025.
- The Ministry of Corporate Affairs (MCA) has amended Ind AS 21, effective April 2025, to help companies handle foreign currency transactions where exchangeability is missing.
- Under the new rules, firms can estimate the spot exchange rate when currencies can’t be exchanged freely—common in volatile or restricted markets. This aims to improve accuracy in financial statements.
- Experts say the move will enhance transparency and boost investor confidence, especially for export-driven firms and those with global operations.