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CA Final · Financial Reporting · Ind AS 34 Interim Financial Reporting

Kaveri Auto Ltd reports quarterly under Ind AS. A finance trainee notes that IAS 34 lets an entity present the statement of profit and loss either as a single statement or as two statements. For the Ind AS 34 interim report of Kaveri Auto Ltd, which is correct?

Only the single-statement approach to the statement of profit and loss is allowed under Ind AS 34, consistent with Ind AS 1. The IAS 34 option of two statements was removed in the Ind AS version, with paragraph numbers retained for consistency.

  1. AEither approach is allowed, at the choice of the entity
  2. BOnly the two-statement approach is allowed for interim reports
  3. COnly the single-statement approach is allowed, consistent with Ind AS 1Correct
  4. DThe statement of profit and loss may be omitted if cash flows are presented

Explanation

Ind AS 34 allows only the single statement approach, in line with Ind AS 1. The IAS 34 option in paragraphs 8A and 11A is deleted in Ind AS 34, though the paragraph numbers are retained. The two-statement option is therefore not available.

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