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

Sunrise Textiles Ltd, which reports under Ind AS, has traditionally closed its books on the last Saturday of March, giving a 52-week year in some years and a 53-week year in others. Its finance head proposes continuing this approach in its Ind AS financial statements, as IAS 1 allows it. Which statement is correct as per the comparison of Ind AS 1 with IAS 1?

Ind AS 1 does not permit a 52-week reporting period. Although IAS 1 allows it, the Indian standard deletes that permission and retains only the paragraph number for consistency, so Sunrise Textiles cannot use a 52-week year in its Ind AS financial statements.

  1. AInd AS 1 permits a 52-week reporting period, provided the fact is disclosed
  2. BInd AS 1 does not permit a 52-week reporting period; the paragraph permitting it was deletedCorrect
  3. CInd AS 1 permits a 52-week period only for entities that are not listed
  4. DInd AS 1 permits a 52-week period only if the difference from a calendar year is immaterial

Explanation

IAS 1 permits reporting on a 52-week basis, but Ind AS 1 does not. The relevant paragraph (37) was deleted and its number retained only to keep numbering consistent with IAS 1. The distractors wrongly assume a conditional or disclosure-based permission that does not exist.

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