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CA Final · Financial Reporting · Financial Instruments: Disclosures

Meera Auto Ltd presents a single statement of profit and loss under Ind AS 1, with components of profit or loss and of other comprehensive income shown in it. Its accountant asks why Ind AS 107 omits the IFRS 7 requirement to describe gains and losses presented in a separate income statement. What reason does Appendix 1 give?

Appendix 1 explains the deletion as consequential to Ind AS 1 removing the two-statement approach available in IAS 1. Because Ind AS 1 requires profit or loss and OCI components in one statement of profit and loss, the separate income statement disclosure requirement is not needed.

  1. AThe requirement was deleted as a consequence of removing the two-statement approach option in Ind AS 1 compared with IAS 1Correct
  2. BThe requirement was deleted because gains and losses on financial instruments are never disclosed under Ind AS
  3. CThe requirement was deleted because it applies only to banks
  4. DThe requirement was moved to Ind AS 101 as a transitional exemption

Explanation

Appendix 1 states that the requirement for describing gains and losses in a separate income statement was deleted, consequential to removal of the two-statement option in Ind AS 1. Ind AS 1 requires profit or loss and OCI components to be presented in the statement of profit and loss. The claim that such gains are never disclosed is wrong, since only the separate-statement wording was removed.

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