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CA Final · Financial Reporting · Financial Instruments: Disclosures

Ind AS 107 differs from IFRS 7 in terminology. Mehta Industries Ltd's accountant drafts disclosure notes using IFRS 7 words. Which replacement of terminology is consistent with Ind AS 107 as stated in its comparison with IFRS 7?

Ind AS 107 uses the term balance sheet instead of statement of financial position, and Statement of profit and loss instead of statement of comprehensive income, to match terminology used in existing Indian laws. It also uses 'approved for issue' instead of 'authorised for issue'.

  1. A'Statement of financial position' becomes 'balance sheet' and 'Statement of comprehensive income' becomes 'Statement of profit and loss'Correct
  2. B'Balance sheet' becomes 'statement of financial position' and 'Statement of profit and loss' becomes 'income statement'
  3. C'Authorised for issue' becomes 'approved for issue' and 'balance sheet' stays unchanged
  4. D'Statement of comprehensive income' is retained and 'Statement of profit and loss' is dropped

Explanation

Ind AS 107 uses 'balance sheet' instead of 'statement of financial position' and 'Statement of profit and loss' instead of 'statement of comprehensive income', reflecting existing Indian laws. Option 3 is wrong because the balance sheet term does change.

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