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

Sundaram Textiles Ltd, an Indian company, has historically closed its books on the last Saturday of March, giving a reporting period of 52 or 53 weeks. The CFO proposes to continue this practice in its first Ind AS financial statements, citing that IAS 1 permits it. Which statement is correct under Ind AS 1 as notified in India?

Ind AS 1 does not allow a 52-week reporting periodicity. IAS 1 permits it in paragraph 37, but the Indian standard deleted that permission and merely retained the paragraph number for consistency. Sundaram Textiles therefore cannot use a 52 or 53 week period under Ind AS.

  1. AInd AS 1 permits a 52-week reporting period if the entity discloses the fact in the notes
  2. BInd AS 1 does not permit a 52-week periodicity; this IAS 1 option was deleted, though paragraph number 37 is retainedCorrect
  3. CInd AS 1 permits a 52-week period only for entities that are subsidiaries of foreign parents
  4. DInd AS 1 permits a 52-week period only if the difference from a calendar year is under one week

Explanation

The Comparison with IAS 1 states that IAS 1 paragraph 37 allows a 52-week periodicity, but Ind AS 1 does not permit it, so the text was deleted. Paragraph number 37 is retained only to keep numbering consistent with IAS 1. The disclosure-based and parent-based options invent exceptions that Ind AS 1 does not contain.

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