Skip to content

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

Ravi Foods Ltd's trainee notes that Ind AS 1 has gaps in paragraph numbering, for example paragraph 37 and paragraph 8 appear without full IAS 1 content. Why does Ind AS 1 retain these paragraph numbers?

Ind AS 1 retains the paragraph numbers, even where content was deleted or altered, to keep its numbering consistent with IAS 1. This lets users cross-refer between the two standards easily. It is not linked to future reinstatement or to listing status.

  1. ATo maintain consistency with paragraph numbers of IAS 1Correct
  2. BBecause the deleted content will be reinstated in the next amendment
  3. CBecause the paragraphs apply only to entities that are not listed
  4. DBecause the Companies Act requires the numbers to be sequential for audit reports

Explanation

The comparison with IAS 1 states that paragraph numbers 37 and 8 were retained, after the content was deleted or changed, to maintain consistency with the paragraph numbers of IAS 1. Other paragraphs, such as 139R, are retained for the same reason. There is no statement about reinstatement or listing status.

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