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

Bharat Pharma Ltd wants to present profit or loss in one statement and a separate, second statement beginning with profit or loss to show other comprehensive income, as IAS 1 allows. Which statement is correct under Ind AS 1?

Ind AS 1 allows only the single statement approach to presenting profit or loss and other comprehensive income. The IAS 1 option of two separate statements is removed by modifying paragraph 10A, so Bharat Pharma cannot present a second statement beginning with profit or loss.

  1. AEither the single-statement or the two-statement approach may be chosen by the entity
  2. BOnly the two-statement approach is allowed
  3. COnly the single-statement approach is allowed, so paragraph 10A of IAS 1 is modified in Ind AS 1Correct
  4. DThe two-statement approach is allowed only for consolidated financial statements

Explanation

IAS 1 gives an option between a single statement and two statements. Ind AS 1 allows only the single statement approach and modifies the IAS 1 paragraph 10A accordingly. The option to use two statements is therefore not available, even for consolidated statements.

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