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CMA Intermediate · Corporate Accounting and Auditing · Presentation of Financial Statements (Ind AS 1)

Meghna Pharma Ltd. is finalising its Ind AS financial statements. Which title should it give to the statement showing its profit or loss and other comprehensive income for the year?

The statement should be titled 'Statement of Profit and Loss'. Ind AS 1 prescribes this single title in place of IAS 1's longer title and removes the freedom to choose other names, so all entities must use the same terminology.

  1. AStatement of Profit and LossCorrect
  2. BStatement of financial position
  3. CStatement of comprehensive income
  4. DIncome and Expenditure Account

Explanation

Ind AS 1 removes the alternative titles available under IAS 1 and prescribes one terminology for all entities. It uses 'Statement of Profit and Loss' instead of 'Statement of profit and loss and other comprehensive income'. 'Statement of financial position' is the IAS term for the balance sheet.

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