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CMA Final · Corporate Financial Reporting · Income Taxes (Ind AS 12)

Why were the requirements on presenting tax expense in a separate income statement removed from Ind AS 12?

The requirements were deleted because Ind AS 1 removed the two-statement option and requires components of profit or loss and other comprehensive income in a single statement of profit and loss, making separate income statement requirements redundant.

  1. AInd AS 12 was amended to ban deferred tax presentation
  2. BThe removal of the option for the two-statement approach in Ind AS 1, which requires components of profit or loss and OCI in one statement of profit and lossCorrect
  3. CInd AS 101 requires a separate income statement only for first-time adopters
  4. DIFRIC 23 replaced the presentation requirements

Explanation

The deletion is consequential to Ind AS 1 removing the two-statement approach option. Ind AS 1 requires the components of profit or loss and OCI to appear in a single statement of profit and loss, so a separate income statement is not presented.

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