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

Bharat Auto Components Ltd, an Ind AS reporter, discloses a discontinued operation in its statement of profit and loss. A director asks whether the entity may present the discontinued operation results in a separate income statement, as IFRS 5 allows when a two-statement approach is used. What does Ind AS 105 provide?

Ind AS 105 deletes the separate income statement requirements of IFRS 5 paragraph 33A. Because Ind AS 1 removed the two-statement approach and requires profit or loss and OCI components within the statement of profit and loss, no separate income statement is presented.

  1. AA separate income statement is allowed as an option for discontinued operations
  2. BA separate income statement is mandatory for discontinued operations
  3. CThe requirements for a separate income statement are deleted because Ind AS 1 requires profit or loss and OCI components in one statement of profit and lossCorrect
  4. DA separate income statement is allowed only for listed entities

Explanation

Ind AS 105 deletes the requirements on presenting discontinued operations in a separate income statement under paragraph 33A of IFRS 5. This follows from the removal of the two-statement option in Ind AS 1, which requires components of profit or loss and OCI in the statement of profit and loss. Paragraph number 33A is retained only for consistency with IFRS 5.

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