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CA Final · Financial Reporting · Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations

Which of the following correctly describes the terminology used in Ind AS 105 as compared with IFRS 5, according to the comparison given in the Standard's appendix?

Ind AS 105 uses 'balance sheet' and 'statement of profit and loss' rather than IFRS terms, and says 'approval of the financial statements for issue' instead of 'authorisation'. Only the option reflecting all these substitutions is correct.

  1. AIt uses 'statement of financial position' and 'statement of comprehensive income', same as IFRS 5
  2. BIt uses 'balance sheet' and 'statement of profit and loss', and 'approval of the financial statements for issue' instead of 'authorisation'Correct
  3. CIt uses 'balance sheet' but retains 'statement of comprehensive income'
  4. DIt uses 'authorisation of the financial statements for issue' and 'statement of profit and loss'

Explanation

The appendix states that Ind AS 105 uses 'balance sheet' instead of 'statement of financial position' and 'statement of profit and loss' instead of 'statement of comprehensive income'. It also uses 'approval of the financial statements for issue' instead of 'authorisation' in the events after the reporting period context. Only option B captures all of this.

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