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CA Final · Financial Reporting · Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations

Meghna Pharma Ltd discontinued its API division this year. The CFO asks whether Ind AS 105 permits the discontinued operation to be shown in a separate income statement, as paragraph 33A of IFRS 5 allows when a separate income statement is presented. What does Ind AS 105 provide?

Ind AS 105 deletes the requirements on presenting discontinued operations in a separate income statement, because Ind AS 1 removed the two-statement option and requires profit or loss and OCI components within the statement of profit and loss. Paragraph number 33A is retained only for numbering consistency.

  1. AThe requirements for a separate income statement are deleted because Ind AS 1 requires components of profit or loss and OCI to be presented in the statement of profit and lossCorrect
  2. BA separate income statement is mandatory for all discontinued operations
  3. CA separate income statement is allowed if the board approves it
  4. DDiscontinued operations need not be presented anywhere in the statement of profit and loss

Explanation

Ind AS 105 deletes the presentation requirements linked to a separate income statement, a consequence of the removal of the two-statement option in Ind AS 1. Components of profit or loss and OCI form part of the statement of profit and loss. Paragraph 33A is retained only to keep numbering consistent with IFRS 5.

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