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CA Final · Financial Reporting · Ind AS 33 Earnings per Share

Tungabhadra Foods Ltd presents a single statement of profit and loss as required by Ind AS 1. The accountant asks whether Ind AS 33 retains the IAS 33 provisions (paragraphs 4A, 67A, 68A and 73A) about presenting EPS using a reported component or discontinued-operations EPS in a separate income statement. Which statement is correct?

Those four paragraphs are deleted in Ind AS 33. This follows from Ind AS 1 removing the two-statement approach, because components of profit or loss are presented within the statement of profit and loss. The paragraph numbers are kept only to maintain consistency with IAS 33 numbering.

  1. AThey are retained and apply whenever a separate income statement is presented voluntarily
  2. BThey are retained only for discontinued operations
  3. CThey are replaced by paragraph 4, which now covers separate statements
  4. DThey are deleted as a consequence of removing the two-statement option in Ind AS 1, though paragraph numbers are retainedCorrect

Explanation

Appendix 1 states that the requirements under paragraphs 4A, 67A, 68A and 73A regarding the separate income statement were deleted in Ind AS 33. This is consequential to Ind AS 1 removing the two-statement approach, so components of profit or loss sit within one statement of profit and loss. The paragraph numbers are retained for consistency with IAS 33. Paragraph 4 deals with a different matter.

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