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

Kaveri Engineering Ltd, an Ind AS reporting company, wants to present its profit or loss in one statement and its other comprehensive income in a second, separate statement that begins with profit for the year, as IAS 1 permits. What is the position under Ind AS 1 as described in its comparison with IAS 1?

Only the single statement approach is allowed under Ind AS 1. IAS 1 gives an option between one statement and two statements, but Ind AS 1 removes that alternative and modified paragraph 10A, so Kaveri Engineering cannot present a separate statement of comprehensive income.

  1. AThe two-statement approach is allowed if the Board approves it
  2. BThe two-statement approach is allowed only for consolidated financial statements
  3. COnly the single statement approach is allowed, so the two-statement approach is not availableCorrect
  4. DEither approach is allowed, but the choice must be applied consistently

Explanation

IAS 1 offers a choice of a single statement or two statements. Ind AS 1 allows only the single statement approach, and paragraph 10A was modified accordingly. Hence the option allowing a choice, even if consistent, is wrong.

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