New Delhi, March 8 -- The accounting profession's self-regulator and rule-maker, the Institute of Chartered Accountants of India (ICAI), has backed audit watchdog National Financial Reporting Authority's (NFRA) proposal to revise reporting norms for foreign currency operations, saying it will bring more clarity.

The amendments are proposed to apply from annual reporting periods beginning on or after 1 April 2025, according to the NFRA.

NFRA's board had last month decided to recommend to the ministry of corporate affairs to notify amendments to accounting standard Ind AS 21 dealing with 'effects of changes in foreign exchange rates'. Under the provision, financial reporting of operations in countries with extreme economic conditions such...