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    Question

    Which Income Computation and Disclosure Standard (ICDS)

    deals with "The Effects of Changes in Foreign Exchange Rates"?
    A ICDS I: Accounting Policies Correct Answer Incorrect Answer
    B ICDS II: Valuation of Inventories Correct Answer Incorrect Answer
    C ICDS V: Construction Contracts Correct Answer Incorrect Answer
    D ICDS VI: The Effects of Changes in Foreign Exchange Rates Correct Answer Incorrect Answer

    Solution

    ICDS VI: The Effects of Changes in Foreign Exchange Rates is the Income Computation and Disclosure Standard that deals with how to account for and disclose the effects of changes in foreign exchange rates on transactions and foreign currency monetary items. It provides guidelines for recognizing exchange differences in financial statements, including when and how to recognize gains or losses arising from foreign exchange rate fluctuations.

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