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

Sundaram Textiles Ltd, an Ind AS reporting company, has historically closed its books on the last Saturday of March, giving a 52-week reporting period in some years and a 53-week period in others. The CFO proposes to present financial statements on this 52/53-week basis, as IAS 1 permits. What is the position under Ind AS 1?

The 52/53-week reporting period is not permitted. Ind AS 1 deletes the IAS 1 allowance for a 52-week periodicity and keeps paragraph 37 only as a placeholder to maintain numbering. Disclosure or Board approval does not make this basis acceptable for an Ind AS reporting company.

  1. APermitted, provided the difference from a calendar year is disclosed in the notes
  2. BPermitted only if the Board of Directors approves the 52-week period
  3. CNot permitted, because Ind AS 1 deletes the IAS 1 provision allowing a 52-week reporting periodCorrect
  4. DPermitted for interim reports but not for annual financial statements

Explanation

The comparison with IAS 1 states that IAS 1 permits a periodicity such as 52 weeks, but Ind AS 1 does not permit it and the text is deleted. Paragraph 37 is retained only to keep numbering consistent. So Sundaram cannot adopt the 52/53-week basis, and disclosure or Board approval does not cure this.

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