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

Kaveri Engineering Ltd's finance team notes that its auditor's Ind AS 1 checklist says an entity may adopt a 52-week reporting period, as is permitted under IAS 1. Kaveri's year-end would otherwise fall on a different weekday each year. How should Kaveri respond under Ind AS 1 as notified?

Kaveri cannot use a 52-week reporting period. IAS 1 allows such periodicity, but Ind AS 1 does not permit it, and the corresponding paragraph 37 content was deleted, with only the number retained to keep numbering consistent with IAS 1.

  1. AAdopt the 52-week period because Ind AS 1 retains the IAS 1 option
  2. BAdopt it only if the period varies by at most a few days from the year-end
  3. CAdopt it only with Board approval and disclosure
  4. DNot adopt it, because Ind AS 1 does not permit a 52-week periodicity and the related paragraph was deletedCorrect

Explanation

The comparison with IAS 1 states that IAS 1 permits a periodicity such as 52 weeks, but Ind AS 1 does not permit it and the text of paragraph 37 is deleted. Only the paragraph number is retained for consistency. Board approval or disclosure cannot restore a deleted option.

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