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CA Final · Financial Reporting · Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations

Kaveri Industries Ltd's Ind AS statement of profit and loss is being prepared. The accountant wants to present the results of a discontinued operation in a separate income statement as IFRS 5 allows under paragraph 33A when a separate income statement is presented. What does Ind AS 105 provide?

Ind AS 105 deletes the separate income statement requirements for discontinued operations. Ind AS 1 removed the two-statement option and requires components of profit or loss and OCI in one statement of profit and loss, so the paragraph 33A number is retained only for consistency.

  1. AA separate income statement is mandatory for discontinued operations
  2. BA separate income statement is optional and chosen by management
  3. CRequirements for a separate income statement are deleted because Ind AS 1 requires profit or loss and OCI components in one statement of profit and lossCorrect
  4. DDiscontinued operations are never presented in the statement of profit and loss

Explanation

The comparison states that the requirements for presenting discontinued operations in a separate income statement were deleted. This follows from removal of the two-statement option in Ind AS 1, which requires both profit or loss and OCI components in the statement of profit and loss. Paragraph number 33A is retained only for consistency.

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