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

Kaveri Pharma Ltd, an Ind AS reporting company, wants to follow the IAS 1 option of presenting a separate statement of profit or loss, followed immediately by a second statement beginning with profit and showing other comprehensive income. Which statement is correct under Ind AS 1?

Only the single statement approach is permitted. Ind AS 1 removes the IAS 1 option of presenting a separate statement of profit or loss followed by a statement of comprehensive income, and the statement is titled Statement of Profit and Loss, so Kaveri Pharma must use one statement.

  1. AThe two-statement approach is allowed if the entity discloses the reason for choosing it
  2. BOnly the single statement approach is allowed, titled Statement of Profit and LossCorrect
  3. CEither approach is allowed, but the choice must be applied consistently for three years
  4. DThe two-statement approach is mandatory for listed entities

Explanation

IAS 1 gives an option of a single statement or two statements. Ind AS 1 removes the alternative and allows only the single statement approach, with paragraph 10A modified accordingly. The statement is called the Statement of Profit and Loss. Disclosing reasons or consistency does not create a choice.

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