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

Sundaram Textiles Ltd, an Ind AS reporter, has traditionally closed its books on the last Saturday of March, producing a 52-week reporting period in some years. The CFO wants to continue this practice and cites IAS 1 as support. Which statement is correct under Ind AS 1 as notified in India?

Ind AS 1 does not allow the 52-week reporting periodicity that IAS 1 permits. The relevant text was deleted in the Indian standard, with only the paragraph number retained for consistency. Sundaram Textiles therefore cannot rely on IAS 1 to justify a 52-week period.

  1. AInd AS 1 permits a 52-week reporting period, provided the difference from a calendar year is disclosed
  2. BInd AS 1 does not permit the 52-week periodicity that IAS 1 allows, so the entity cannot adopt itCorrect
  3. CInd AS 1 permits a 52-week period only if the entity is listed
  4. DInd AS 1 permits a 52-week period only with Ministry approval for each year

Explanation

The Ind AS 1 comparison with IAS 1 notes that IAS 1 permits a periodicity such as 52 weeks, but Ind AS 1 does not permit it and the text was deleted. Paragraph number 37 is retained only for consistency. Hence the 52-week practice cannot be followed, and disclosure does not cure it.

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