Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Presentation of Financial Statements (Ind AS 1)

In FY 2025-26, Kaveri Engineering Ltd departed from an Ind AS measurement requirement and made full departure disclosures. In FY 2026-27 it complies with the Ind AS, but the earlier departure still affects the carrying amount of an asset and so the current year's depreciation. What does Ind AS 1 require in FY 2026-27?

Kaveri must make the paragraph 20(c) and (d) disclosures for the prior-period departure, because it still affects amounts recognised in the current period. These cover the Ind AS title, nature, reason and treatment adopted, and the financial effect on each item for each period presented.

  1. ANo disclosure, since the departure is not made in the current period
  2. BDisclosures in paragraph 20(c) and (d) concerning that prior-period departureCorrect
  3. COnly a statement that management concluded the statements present a true and fair view
  4. DRestatement of the prior period without any disclosure

Explanation

Paragraph 21 applies when a prior-period departure affects amounts recognised in the current period, and requires the disclosures in paragraph 20(c) and (d). Paragraph 22 gives the example of a measurement departure affecting changes in assets and liabilities. So disclosure is needed even though the current year complies.

Did you get it right without looking?

One question tells you little. A timed set on Presentation of Financial Statements (Ind AS 1) shows your real accuracy, how long you take and where you lose marks.

Practise Presentation of Financial Statements (Ind AS 1)Free diagnostic mock

More Presentation of Financial Statements (Ind AS 1) questions