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CA Final · Financial Reporting · Ind AS 34 Interim Financial Reporting

Veda Textiles Ltd, a listed company, prepares its quarterly interim report under Ind AS 34. The finance head says the statement of profit and loss may be presented either as one statement or as two separate statements (a profit or loss statement followed by a statement of comprehensive income), as IAS 34 permits. Which statement is correct as per Ind AS 34 as notified in India?

Ind AS 34 permits only the single statement approach for the statement of profit and loss, consistent with Ind AS 1. The option in IAS 34 to present two statements has been removed in the Indian standard, so Veda Textiles cannot choose the two statement presentation.

  1. AInd AS 34 allows only the single statement approach, in line with Ind AS 1, unlike IAS 34 which gives an optionCorrect
  2. BInd AS 34 allows the two statement approach only for quarterly reports
  3. CInd AS 34 gives the same option as IAS 34, at the choice of the entity
  4. DInd AS 34 requires the two statement approach for interim periods and the single statement for annual reports

Explanation

The comparison with IAS 34 notes that IAS 34 gives an option between single and two statement approaches. Ind AS 34 allows only the single statement approach, consistent with Ind AS 1. The IAS 34 paragraphs giving the option are deleted. Hence the two statement approach is not available.

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