Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Presentation of Financial Statements (Ind AS 1)

Tapti Engineering Ltd. prepares general purpose financial statements in accordance with Indian Accounting Standards. A trainee says the 'balance sheet' must be renamed 'Statement of financial position' to comply with Ind AS 1. What is the correct position?

The trainee is wrong. Ind AS 1 uses the term 'balance sheet' and removes IAS 1's option to choose different titles, so every entity applying Ind AS uses the same terminology and no renaming to 'Statement of financial position' is required.

  1. ARenaming is mandatory for entities applying Ind AS
  2. BEither title may be used, since Ind AS 1 leaves the choice to the entity
  3. CStatement of financial position is used only for consolidated statements
  4. DThe term 'balance sheet' is used, because Ind AS 1 gives one terminology for all entitiesCorrect

Explanation

Ind AS 1 uses 'balance sheet' instead of 'Statement of financial position' and removes the option IAS 1 gives entities to choose different titles. So no renaming is needed, and no choice exists between titles.

Did you get it right without looking?

One question tells you little. A timed set on Presentation of Financial Statements (Ind AS 1) shows your real accuracy, how long you take and where you lose marks.

Practise Presentation of Financial Statements (Ind AS 1)Free diagnostic mock

More Presentation of Financial Statements (Ind AS 1) questions