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CA Final · Financial Reporting · Financial Instruments: Disclosures

Meera Infra Ltd reports in its Ind AS financial statements. A trainee notes that IFRS 7 requires a description of gains and losses presented in a separate income statement where a separate income statement is presented, and asks why Ind AS 107 has no such requirement. What is the correct reason per the Ind AS 107 appendix?

The requirement was deleted because Ind AS 1 removed the two-statement option. Ind AS 1 requires the components of profit or loss and other comprehensive income to be presented within a single statement of profit and loss, so a separate income statement description is no longer needed.

  1. AInd AS 1 requires components of profit or loss and other comprehensive income to be presented in the single statement of profit and loss, so the two-statement option was removedCorrect
  2. BIndian law prohibits the disclosure of gains and losses on financial instruments
  3. CInd AS 107 requires such gains and losses to be shown only in the notes to accounts
  4. DThe requirement applies only to banks and was therefore deleted for corporates

Explanation

The appendix says the requirement was deleted as a consequence of removing the two-statement option available in IAS 1. Ind AS 1 requires components of profit or loss and OCI to be presented as part of the statement of profit and loss. The other reasons are not given in the standard.

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