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

Under Ind AS 1 as notified in India, how must an entity present its profit or loss and other comprehensive income for a period?

Ind AS 1 requires a single Statement of Profit and Loss with two sections, profit or loss first and other comprehensive income directly after. The two-statement option allowed by IAS 1 is not permitted in Ind AS.

  1. AIn a single Statement of Profit and Loss with profit or loss and OCI shown in two sections, profit or loss firstCorrect
  2. BIn two separate statements, a statement of profit or loss followed by a statement of comprehensive income
  3. CEither a single statement or two statements, at the entity's option
  4. DProfit or loss in the Statement of Profit and Loss and OCI only in the notes to accounts

Explanation

Ind AS 1 removes the two-statement option available in IAS 1. It allows only the single statement approach, in which profit or loss and OCI are two sections presented together, with the profit or loss section first and the OCI section directly after it. The two-statement and optional approaches are therefore wrong.

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