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

Sunrise Textiles Ltd, an Indian company reporting under Ind AS, has a 52-week reporting cycle and wants to present financial statements for a 52-week period ending on the Saturday nearest 31 March, as IAS 1 allows in certain cases. Which statement is correct as per Ind AS 1?

Ind AS 1 does not allow a 52-week reporting period. The IAS 1 option for such periodicity was deleted when Ind AS 1 was formulated, and only the paragraph number 37 has been retained so that numbering stays consistent with IAS 1. No disclosure, listing status or auditor approval changes this.

  1. AInd AS 1 does not permit a 52-week reporting period; this IAS 1 option has been deleted, though the paragraph number 37 is retainedCorrect
  2. BInd AS 1 permits a 52-week period if the difference from a calendar year is disclosed
  3. CInd AS 1 permits a 52-week period only for listed companies
  4. DInd AS 1 permits a 52-week period if the auditor approves it

Explanation

The Ind AS 1 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 number 37 is retained only to keep numbering consistent with IAS 1. The other options invent conditions that do not exist.

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