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

Arjun Infra Ltd's finance team is drafting its first Ind AS financial statements. Staff propose using the titles 'Statement of financial position' and 'Statement of profit and loss and other comprehensive income', and describing the objective as 'fair presentation'. Which set of terms does Ind AS 1 prescribe instead?

Ind AS 1 prescribes the terms Balance sheet, Statement of Profit and Loss, and true and fair view. These replace IAS 1's statement of financial position, statement of profit or loss and other comprehensive income, and fair presentation. Entities cannot choose alternative titles.

  1. ABalance sheet; Statement of Profit and Loss; true and fair viewCorrect
  2. BBalance sheet; Statement of comprehensive income; fair presentation
  3. CStatement of financial position; Statement of Profit and Loss; true and fair view
  4. DStatement of financial position; Statement of comprehensive income; fair presentation

Explanation

The comparison with IAS 1 states that Ind AS 1 uses 'balance sheet' instead of 'statement of financial position', 'Statement of Profit and Loss' instead of the longer IAS title, and 'true and fair view' instead of 'fair presentation'. Ind AS 1 also removes the alternative titles IAS 1 allows, so one terminology applies to all entities.

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