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CA Final · Financial Reporting · Ind AS 1 Presentation of Financial Statements

Ananya Steels Ltd's board is reviewing its report on events after the reporting period. The draft says financial statements were 'authorised for issue' on the board meeting date and that they give a 'fair presentation'. Which wording corresponds to the terminology in Ind AS 1 as notified in India?

Ind AS 1 uses 'approval of the financial statements for issue' instead of IAS 1's 'authorisation for issue', and 'true and fair view' instead of 'fair presentation'. Both terminology changes apply together, so the draft report should use approval and true and fair view.

  1. A'Authorisation for issue' and 'fair presentation' are retained unchanged
  2. B'Approval for issue' and 'true and fair view'Correct
  3. C'Approval for issue' and 'fair presentation'
  4. D'Authorisation for issue' and 'true and fair view'

Explanation

Appendix 1 says the words 'approval of the financial statements for issue' are used instead of 'authorisation' in the context of events after the reporting period, and 'true and fair view' is used instead of 'fair presentation'. Both substitutions apply, so only the second option is fully correct.

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