Financial Statements
The Standard requires an entity to present a complete set of financial statements at least annually, with comparative amounts for the preceding year (including comparative amounts in the notes). A complete set of financial statements comprises:
a balance sheet as at the end of the period ;a statement of profit and loss for the period;Statement of changes in equity for the period;a statement of cash flows for the period;notes, comprising significant accounting policies and other explanatory information; andcomparative information in respect of the preceding period; anda balance sheet as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial
The Standard requires an entity to present, in a statement of changes in equity, all owner changes in equity. All non-owner changes in equity (i.e., comprehensive income) are required to be presented in single statement of profit and loss, with profit or loss and other comprehensive income presented in two sections. The sections shall be presented together, with the profit or loss section presented first followed directly by the other comprehensive income section. The Standard requires that an entity whose financial statements comply wi th Ind AS must make an explicit and unreserved statement of such compliance in the notes. An entity must not describe financial statements as complying with Ind AS unless they comply with all the requirements of Ind AS. The application of Ind AS, with additional disclosure when necessary, is presumed to result in financial statements that achieve a presentation of true and fair view. The Standard also deals with going concern issues, offsetting and changes in presentation or classification.
Structure and Content
The Standard requires that an entity shall clearly identify the financial statements and distinguish them from other information in the same published document. The Standard requires some line items to be presented in the balance sheet. It also prescribes the information to be presented in statement of profit and loss, other comprehensive income section and statement of changes in equity.
Other Comprehensive Income
Other comprehensive income comprises items of income and expenses (including reclassification adjustments) that are not recognised in profit or loss as required or permitted by other Ind AS. The Standard requires an entity to disclose reclassification adjustments and income tax relating to each component of other comprehensive income. Reclassification adjustments are the amounts reclassified to profit or loss in the current period that were previously recognised in other comprehensive income. The other comprehensive income section shall present line items for amounts for the period of:
items of other comprehensive income (excluding amounts in paragraph (b)), classified by nature and grouped into those that, in accordance with other Ind AS: will not be reclassified subsequently to profit or loss; and will be reclassified subsequently to profit or loss when specific conditions are the share of the other comprehensive income of associates and joint
ventures accounted for using the equity method, separated into the share of items that in accordance with other Ind AS:
will not be reclassified subsequently to profit or loss; andwill be reclassified subsequently to profit or loss when specific conditions are
Current / non-current distinction
The Standard requires that an entity shall present current and non-current assets, and current and non-current liabilities, as separate classifications in its balance sheet except when a presentation based on liquidity provides information that is reliable and more relevant. When that exception applies, an entity shall present all assets and liabilities in order of liquidity. The Standard also requires that whichever method of presentation is adopted, an entity shall disclose the amount expected to be recovered or settled after more than twelve months for each asset and liability line item that combines amounts expected to be recovered or settled:
no more than twelve months after the reporting period, andmore than twelve months after the reporting period. The Standard, among other things, requires that:An entity shall disclose, along with its significant accounting policies or other notes, the judgements, apart from those involving estimations, that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognised in the financialAn entity shall disclose information about the assumptions it makes about the future, and other major sources of estimation uncertainty at the end of the reporting period, that have a significant risk of resultin g in a material adjustment to the carrying amounts of assets and liabilities within the next financial
An entity shall disclose information that enables users of its financial statements to evaluate the entity’s objectives, policies and processes for managing capital. An entity shall also provide additional disclosures on puttable financial instruments classified as equity instruments.
Difference Between Ind AS 1 and AS 1
Recommended Articles The first part displays the various components of the profit or loss for the period (Just like profit and loss account) The second part displays the various components of “Other comprehensive Income” for the period, which includes Items like unrealised gains and losses (gains on revaluation of fixed assets, actuarial gains and losses on employee benefits, etc.)
Ind AS 40 Investment PropertyIndian Accounting Standard (IndAS 2)IND AS 36 Impairment of AssetsIndAS 1 Presentation of Financial StatementIndAS 106 Exploration & Evaluation of Mineral ResourcesIndAS 7 Statement of Cash FlowsIndAS 10 Event Occurring After the Reporting PeriodIndAS 8 Accounting Policies
