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CA Final · Financial Reporting · Financial Instruments: Disclosures

Anand Pharma Ltd's accountant is preparing the financial statements under Ind AS and, as in IFRS 7, intends to include a separate description of gains and losses presented in a separate income statement. Anand Pharma presents a single statement of profit and loss with components of OCI. According to Appendix 1 of Ind AS 107, what is the position?

The requirement to describe gains and losses in a separate income statement is deleted in Ind AS 107. This follows from Ind AS 1 removing the two-statement option, so components of profit or loss and other comprehensive income are presented together in the statement of profit and loss.

  1. AThe requirement is retained, since Ind AS 1 permits a two-statement approach
  2. BThe requirement is deleted because the option of the two-statement approach was removed in Ind AS 1, which requires profit or loss and OCI components in one statement of profit and lossCorrect
  3. CThe requirement is deleted because OCI items need not be presented under Ind AS
  4. DThe requirement is retained but applies only to listed companies

Explanation

Appendix 1 says the disclosure of description of gains and losses in a separate income statement has been deleted. This is consequential to removing the two-statement option in Ind AS 1, which requires both components in the statement of profit and loss. OCI is still presented, so the third option is wrong.

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