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CA Final · Financial Reporting · Ind AS 34 Interim Financial Reporting

Sagar Textiles Ltd prepares quarterly results. A colleague says that Ind AS 34 lets an entity choose between presenting the statement of profit and loss in a single statement or in two separate statements, as IAS 34 allows. Which statement about Ind AS 34 is correct?

Ind AS 34 permits only the single statement approach for the statement of profit and loss, consistent with Ind AS 1. The option available under IAS 34 to use two statements has been removed in the Indian standard, so an entity cannot choose between the approaches.

  1. AInd AS 34 permits both the single statement and the two statement approaches, at the entity's option
  2. BInd AS 34 permits only the single statement approach, in line with Ind AS 1Correct
  3. CInd AS 34 requires the two statement approach for condensed interim reports only
  4. DInd AS 34 leaves the presentation approach to the audit committee

Explanation

The comparison with IAS 34 states that IAS 34 gives an option between single and two statement approaches, but Ind AS 34 allows only the single statement approach, as Ind AS 1 does. The IAS 34 option paragraphs 8A and 11A are deleted. The two-statement option is therefore not available.

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