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

Kaveri Pharma Ltd's draft Ind AS financial statements are titled 'Statement of Financial Position' and 'Statement of Profit or Loss and Other Comprehensive Income', following its parent's IFRS group manual. Which comment is most consistent with Ind AS 1 as notified?

Kaveri Pharma should use the Ind AS terminology. Ind AS 1 removes IAS 1's option to use different titles and prescribes one set of terms for all entities: Balance Sheet and Statement of Profit and Loss, rather than Statement of Financial Position or Statement of Profit or Loss and Other Comprehensive Income.

  1. ABoth titles are acceptable since entities may choose their own titles
  2. BTitles may differ only for the Statement of Profit and Loss
  3. CInd AS 1 removes the alternatives and uses one terminology: 'Balance Sheet' and 'Statement of Profit and Loss'Correct
  4. DTitles may be chosen freely if the notes explain the choice

Explanation

IAS 1 lets entities use other titles for statements. Ind AS 1 removes this alternative and gives one terminology, using 'balance sheet' instead of 'statement of financial position' and 'Statement of Profit and Loss' instead of the longer IAS title. Paragraph 8 is retained only for numbering.

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