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

Kaveri Pharma Ltd is preparing its first set of financial statements under Ind AS and its finance team is following IAS 1 terminology, using 'Statement of financial position' and presenting profit or loss and OCI in two separate statements. Which view is consistent with Ind AS 1 as notified in India?

Ind AS 1 prescribes the titles 'balance sheet' and 'Statement of Profit and Loss' for everyone and permits only the single statement approach, with profit or loss and OCI presented together. The IAS 1 options for different titles or a two-statement presentation were removed in the Indian standard.

  1. AEntities may choose either title, and either single or two-statement approach, if applied consistently
  2. BInd AS 1 uses 'balance sheet' and 'Statement of Profit and Loss', and allows only the single statement approachCorrect
  3. CInd AS 1 requires the two-statement approach but allows the title 'Statement of financial position'
  4. DInd AS 1 allows the two-statement approach only for listed entities

Explanation

Appendix 1 states Ind AS 1 uses 'balance sheet' instead of 'Statement of financial position' and 'Statement of Profit and Loss' as the title, removing alternatives so all entities use one terminology. It also allows only the single statement approach, whereas IAS 1 offers a choice. The choice-based option reflects IAS 1, not Ind AS 1.

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