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CA Final · Financial Reporting · Ind AS 34 Interim Financial Reporting

Sunrise Textiles Ltd, an Indian listed company, is preparing its quarterly report under Ind AS 34. The finance head says the statement of profit and loss may be presented either as a single statement or as two separate statements, because IAS 34 allows both. Which statement is correct under Ind AS 34 as notified in India?

Ind AS 34 allows only the single statement approach for the statement of profit and loss, consistent with Ind AS 1. The option in IAS 34 to use two statements has been removed in the Indian standard, so Sunrise Textiles must present one statement.

  1. AInd AS 34 permits only the single statement approach, in line with Ind AS 1, so the two-statement option in IAS 34 is not availableCorrect
  2. BInd AS 34 permits both approaches, exactly like IAS 34
  3. CInd AS 34 permits only the two-statement approach for interim periods
  4. DInd AS 34 leaves the choice to the auditor of the entity

Explanation

The comparison with IAS 34 states that Ind AS 34 allows only the single statement approach, consistent with Ind AS 1. The IAS 34 paragraphs giving the option (8A and 11A) are deleted in Ind AS 34. The option allowing both approaches is wrong because that is the IAS 34 position, not the Indian one.

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