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CA Final · Financial Reporting · Financial Instruments: Disclosures

Ind AS 107 does not require separate disclosure of the description of gains and losses presented in a separate income statement. What reason does Appendix 1 give for this?

The requirement was deleted because Ind AS 1 removed the two statement approach. Ind AS 1 requires components of profit or loss and of other comprehensive income to be presented as part of the statement of profit and loss, so a separate income statement description is unnecessary.

  1. AInd AS 1 requires components of profit or loss and other comprehensive income to be presented as part of one statement of profit and loss, removing the two statement optionCorrect
  2. BGains and losses on financial instruments are no longer recognised in Ind AS
  3. CThe disclosure is covered by Ind AS 113
  4. DIndian companies are not permitted to present other comprehensive income

Explanation

Appendix 1 says the requirement was deleted as a consequence of removing the two statement approach in Ind AS 1, which requires profit or loss and OCI components in the statement of profit and loss. Other options contradict the text.

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