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CA Final · Financial Reporting · Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations

A student comparing Ind AS 105 with IFRS 5 notes that Ind AS 105 deletes the requirement to present discontinued operations in a separate income statement under paragraph 33A of IFRS 5. What is the reason given for this deletion?

The deletion is consequential to Ind AS 1 removing the option of a two-statement approach. Ind AS 1 requires components of profit or loss and other comprehensive income to be presented within a single statement of profit and loss, so a separate income statement is not applicable.

  1. AInd AS 105 prohibits any disclosure of discontinued operations in the statement of profit and loss
  2. BIt is consequential to the removal in Ind AS 1 of the option of a two-statement approach, so components of profit or loss and OCI are presented in the statement of profit and lossCorrect
  3. CDiscontinued operations are not recognised at all under Ind AS
  4. DSeparate income statements are permitted only for listed entities in India

Explanation

The Ind AS 105 comparison with IFRS 5 states that the deletion is consequential to Ind AS 1 removing the two-statement option; profit or loss and OCI components are presented in one statement of profit and loss. Paragraph number 33A is retained for consistency. The first option wrongly claims disclosure is prohibited.

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