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

Bharat Components Ltd is preparing its first Ind AS financial statements and its accountant, familiar with IFRS, proposes presenting profit or loss in one statement and total comprehensive income in a separate second statement immediately following it. What is the position under Ind AS 1?

The two-statement presentation is not allowed. Although IAS 1 gives a choice between one and two statements, Ind AS 1 permits only the single statement approach, and paragraph 10A was modified to reflect this. Listing status or the size of other comprehensive income does not create an exception.

  1. AAllowed, since the two-statement approach is available to all Ind AS entities
  2. BAllowed only if the company is unlisted
  3. CAllowed only if other comprehensive income exceeds profit or loss
  4. DNot allowed; Ind AS 1 permits only the single statement approach, presented as the Statement of Profit and LossCorrect

Explanation

IAS 1 offers a single-statement or two-statement approach. Ind AS 1 allows only the single statement approach and paragraph 10A was modified accordingly. Hence the proposed two-statement presentation is not permitted, regardless of listing status or relative size of OCI.

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