CA Final · Financial Reporting · Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations
Kaveri Industries Ltd presents its financial statements under Ind AS 1 and has a discontinued operation in the year. IFRS 5 permits, where a separate income statement is presented, the discontinued operation analysis to be shown in that separate statement. How does Ind AS 105 treat this?
Ind AS 105 deletes the requirements for a separate income statement, because Ind AS 1 removed the two-statement option. Components of profit or loss and other comprehensive income are presented within the single statement of profit and loss.
- AThe analysis may be given in a separate income statement at the entity's option
- BThe requirements for a separate income statement are deleted, as Ind AS 1 requires components of profit or loss and OCI in the single statement of profit and lossCorrect
- CThe discontinued operation analysis is shown only in the cash flow statement
- DThe discontinued operation is shown only in the balance sheet and not in the statement of profit and loss
Explanation
Ind AS 105 deletes the requirements on presenting discontinued operations in a separate income statement, consequent to removal of the two-statement option in Ind AS 1. Components of profit or loss and OCI are presented in the statement of profit and loss. Paragraph number 33A is retained only for consistency with IFRS 5.
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