CA Final · Financial Reporting · Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations
Meera Pharma Ltd. is preparing its statement of profit and loss for a year in which it has a discontinued operation. Under Ind AS 105, how is the presentation of discontinued operations affected by the removal of the two-statement approach in Ind AS 1?
Presentation is within the statement of profit and loss, because Ind AS 105 deletes the separate income statement requirement of paragraph 33A. This follows from Ind AS 1 removing the two-statement option, though the paragraph number is retained for consistency with IFRS 5.
- ADiscontinued operations are presented in a separate income statement under paragraph 33A
- BDiscontinued operations are presented only in the notes
- CThe separate income statement requirement of paragraph 33A is deleted, so presentation is within the statement of profit and lossCorrect
- DDiscontinued operations are presented in the statement of changes in equity
Explanation
The requirements about presenting discontinued operations in a separate income statement under paragraph 33A of IFRS 5 are deleted in Ind AS 105. This is consequential to Ind AS 1 requiring profit or loss and OCI components to be presented in the statement of profit and loss. The paragraph number 33A is retained for consistency.
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