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

Bharat Components Ltd has a discontinued operation and prepares its financial statements under Ind AS. Which presentation approach for the results of the discontinued operation is consistent with Ind AS 105 as it differs from IFRS 5?

The results are presented within the statement of profit and loss. Ind AS 105 deletes the separate income statement presentation of IFRS 5 paragraph 33A, because Ind AS 1 removed the two-statement option and requires profit or loss components in the statement of profit and loss.

  1. APresent the discontinued operation's results in a separate income statement displayed apart from the statement of profit and loss
  2. BPresent only the net result of discontinued operations in the notes, without disclosure in the statement of profit and loss
  3. CPresent the discontinued operation's results within the statement of profit and loss, since the separate income statement option is not availableCorrect
  4. DPresent the results in a separate statement of comprehensive income at the entity's choice

Explanation

Ind AS 105 deletes the requirements for presenting discontinued operations in a separate income statement under IFRS 5 paragraph 33A. This follows from Ind AS 1 requiring components of profit or loss and OCI to be presented as part of the statement of profit and loss. Hence a separate income statement is not available.

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