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

Which of the following is a line item required by Ind AS 1 to be presented in the profit or loss section of the Statement of Profit and Loss?

The share of profit or loss of associates and joint ventures accounted for using the equity method must be a separate line in the profit or loss section. Dividends and reserve transfers are equity movements, not profit or loss items.

  1. AShare of profit or loss of associates and joint ventures accounted for using the equity methodCorrect
  2. BDividends declared to shareholders
  3. CProposed transfer to general reserve
  4. DExtraordinary items shown separately

Explanation

Para 82 lists revenue, finance costs, impairment losses under Ind AS 109, share of profit or loss of equity-accounted associates and joint ventures, tax expense and a single amount for discontinued operations. Dividends and reserve transfers are changes in equity, not profit or loss items, and extraordinary items are not a required line.

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