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CMA Intermediate · Corporate Accounting and Auditing · Statement of Profit and Loss and Balance Sheet (Schedule III of Companies Act, 2013)

As reproduced in the official text, how does Ind AS 1 treat the analysis of expenses referred to in paragraph 99 in relation to the statement of profit and loss?

Ind AS 1 paragraph 100 encourages entities to present the paragraph 99 analysis in the statement of profit and loss itself. It is an encouragement rather than a prohibition, and it is not limited to the notes or to foreign companies.

  1. AEntities are encouraged to present the analysis in the statement of profit and lossCorrect
  2. BIt is prohibited in the statement of profit and loss and must appear only in the notes
  3. CIt must be presented only in the directors' report
  4. DIt is required only for foreign companies

Explanation

Paragraph 100 says entities are encouraged to present the analysis in paragraph 99 in the statement of profit and loss. It is therefore neither prohibited nor restricted to the directors' report.

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