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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 always closed its books on the Saturday nearest 31 March, so its years run to 52 or 53 weeks. The CFO proposes to present financial statements on this 52-week basis, as IAS 1 permits. Which statement is correct under Ind AS 1 as notified in India?

Ind AS 1 does not permit a 52-week reporting period. IAS 1 allows it, but the Indian standard deletes that paragraph and keeps only its number so that paragraph numbering stays consistent with IAS 1. Sunrise Textiles therefore cannot present statements on a 52-week basis.

  1. AInd AS 1 permits the 52-week reporting period, as IAS 1 does, if the entity discloses the reason
  2. BInd AS 1 does not permit the 52-week periodicity; the related IAS 1 paragraph is deleted, and its number is retained only to keep numbering consistent with IAS 1Correct
  3. CInd AS 1 permits a 52-week period only for entities that are listed
  4. DInd AS 1 permits the 52-week period only if the difference from a calendar year is under seven days

Explanation

IAS 1 allows a 52-week periodicity, but Ind AS 1 does not. The IAS 1 paragraph is deleted in Ind AS 1 and the paragraph number is retained to keep numbering consistent with IAS 1. Options permitting it on disclosure, listing or a seven-day difference have no support in Ind AS 1.

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