Skip to content

CA Final · Financial Reporting · Ind AS 1 Presentation of Financial Statements

Narmada Foods Ltd approves its financial statements on 20 May. A non-adjusting event occurs on 25 May, before the shareholders' meeting. A director asks which words Ind AS 1 context uses for the approval step in events after the reporting period. Which is correct per the differences from IAS 1?

The Ind AS wording is 'approval of the financial statements for issue'. Ind AS replaces the IAS 1 phrase 'authorisation of the financial statements for issue' with this wording in the context of events after the reporting period.

  1. A'Authorisation of the financial statements for issue'
  2. B'Approval of the financial statements for issue'Correct
  3. C'Ratification of the financial statements by members'
  4. D'Certification of the financial statements for issue'

Explanation

Appendix 1 states that the words 'approval of the financial statements for issue' are used instead of 'authorisation of the financial statements for issue' in the context of events after the reporting period. The 'authorisation' wording is the IAS 1 term.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 1 Presentation of Financial Statements shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 1 Presentation of Financial StatementsFree diagnostic mock

More Ind AS 1 Presentation of Financial Statements questions