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

While preparing its first set of financial statements under Ind AS, Kaveri Textiles Ltd. proposes to end its reporting period on the last Saturday of March each year, giving a 52-week year. Which statement is correct under Ind AS 1 as notified in India?

A 52-week reporting period is not permitted under Ind AS 1. IAS 1 allows it, but the Indian standard deleted the option and kept only the paragraph number for consistency, so disclosure, listing status or auditor approval cannot make it acceptable.

  1. AA 52-week reporting period is permitted if it is disclosed in the notes
  2. BA 52-week reporting period is permitted only for listed companies
  3. CA 52-week reporting period is not permitted, because Ind AS 1 does not permit it, unlike IAS 1Correct
  4. DA 52-week reporting period is permitted if approved by the auditor

Explanation

IAS 1 allows entities to report on a 52-week basis. Ind AS 1 removed this option, and the paragraph number 37 was retained only for consistency with IAS 1. Disclosure, listing status or auditor approval does not change this.

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