Framework
Ind AS 1- Presentation of Financial Statement
s
Objectives..............................................................................................................................1
Complete Set Of Financial Statements...............................................................................1
General Feature of Financial Statement............................................................................3
Structure and Content (Refer Division II of Schedule III)..............................................5
Framework
Chapter 1.3. Presentation of Financial Statements
Objectives
1. To ensure comparability between years and entities.
2. This standard does not apply to Interim financial statements prepared in accordance
with Ind AS 34
Complete Set Of Financial Statements
1. A Balance Sheet at the end of reporting period
2. A Statement of Profit and Loss for the period
3. Statement of changes in Equity for the period
4. A Statement of cash flows for the period
5. Notes, comprising significant accounting policies and other explanatory information
6. Comparative information in respect of preceding period
Framework
General Feature of Financial Statement
Going
Concern
Accrual
Fair
basis of
Presentation
accounting
Complianc Materiality
Financial
e with Ind and
ASs Statements aggregation
Comparative
Offsetting
Information
Consistency
of
presentation
An entity whose financial statements comply with Ind AS shall make an explicit and
unreserved statement of such compliance in the notes.
An entity cannot rectify inappropriate accounting policies either by disclosure of the
accounting policies used by notes or explanatory material.
1. Going concern
2. Accrual basis of Accounting
Framework
i. Financial statements, except for cash flow information, should be prepared using the
accrual basis
Assets, liabilities, equity, income and expenses recognised when the definitions and
recognition criteria in the Framework are met
3. Materiality and Aggregation
i. Separate presentation of material items of dissimilar nature
ii. Immaterial items need not be presented separately - Aggregate with amounts of
similar nature or function. If sufficiently material after aggregation, separate
presentation in notes required
4. Offsetting
i. Assets and liabilities should not be offset unless required or permitted by an Ind AS
ii. Items of income and expense should not be offset unless required or permitted by an
Ind AS or Gains, losses and related expenses arising from the same or similar items are
not material.
5. Consistency of presentation
i. Retain the same presentation and classification of items unless
ii. Change will result in more appropriate presentation. Change required by an Ind AS
6. Comparative information
i. Numerical comparative information for the previous period required narrative
comparative information required if relevant to understanding of current period
ii. Reclassify comparative amounts unless impracticable to change presentation or
classification
iii. Disclosure required
iv. When an entity applies an accounting policy retrospectively, corrects a prior year
error, or reclassifies items in its financial statements, it shall present, in addition a
statement of financial position as of the beginning of the earliest period presented, if
material.
7. Compliance with Ind AS
i. Explicit and unreserved statement of compliance
ii. Compliance with all Ind Ass
iii. Disclose application of Ind ASs before effective date
iv. Inappropriate accounting treatments cannot be rectified by disclosure
8. Fair presentation
i. Achieved by appropriate application of Ind As
ii. Requires faithful representation of effects of transactions, events and conditions in
accordance with recognition criteria set out in the framework.
If compliance with an Ind AS is misleading, departure from that standard requires
i. Comprehensive disclosure requirements
ii. Only if local regulator allows
iii. Extremely rare
Framework
9. Constraints on relevant and reliable information
- Timeliness
- Cost and its benefit comparison
- Balance between qualitative characteristic
Structure and Content (Refer Division II of Schedule III)
Format of Schedule III (Module 1)
1. General Instructions
2. Part I – Form of Balance Sheet
3. General Instructions for Preparation of Balance Sheet
4. Part II – Form of Statement of Profit and Loss
5.General Instructions for Preparation of Statement of Profit and Loss
(for Format and Explanation Refer Chapter 1: Introduction)
