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CMA Intermediate · Corporate Accounting and Auditing · Statement of Profit and Loss and Balance Sheet (Schedule III of Companies Act, 2013)

Under Schedule III (Division II, Ind AS) of the Companies Act, 2013, which of the following is a complete set of financial statements for a company that follows Ind AS?

A complete set under Division II of Schedule III comprises the Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes in Equity, the Statement of Cash Flows and the notes, because Ind AS 1 requires all these components.

  1. ABalance Sheet and Statement of Profit and Loss only
  2. BBalance Sheet, Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity, Statement of Cash Flows and notesCorrect
  3. CBalance Sheet, Statement of Profit and Loss and Directors' Report only
  4. DTrial Balance, Balance Sheet and Statement of Profit and Loss

Explanation

Division II follows Ind AS 1. The financial statements consist of the Balance Sheet, the Statement of Profit and Loss with Other Comprehensive Income, the Statement of Changes in Equity, the Statement of Cash Flows and notes. Option A omits components. The Directors' Report is not a financial statement.

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