NFRA approves Ind AS 21 changes for cross-border financial reporting

Companies that do business in different countries use different kinds of money.

Sometimes a country's money loses value very quickly because of very high inflation.

That makes it hard for a company in India to report money from its overseas business.

Rules for changing foreign money numbers into Indian money numbers were not always clear.

The National Financial Reporting Authority, a group that watches over financial reports in India, approved new rules to fix this.

The new rules match rules made by a worldwide group called the International Accounting Standards Board.

The changes will help Indian companies with businesses in countries where money loses value fast.

The new rules will start for financial years beginning in April 2027.

This helps companies report their money the same way everywhere in the world.