Indian Accounting Standard (Ind AS) 1

Presentation of Financial Statements

Contents Paragraphs
OBJECTIVE 1
SCOPE 2 6
DEFIITIOS 7-8A
FIACIA! STATE"ETS 9-46
Purpose o# #inancia$ state%ents 9
Co%p$ete set o# #inancia$ state%ents 10-14
&enera$ #eatures 15-46
Presentation of True and Fair View and com!iance
wit" #nd A$s
15-24
%oin& 'oncern 25-26
Accrua! (asis of Accountin& 27-28
)ateria!it* and A&&re&ation 29-+1
,ffsettin& +2-+5
Fre-uenc* of reortin& +6-+7
'omarati.e #nformation +8-44
'onsistenc* of Presentation 45-46
ST'(CT('E AD COTET 47-1+8
Introduction 47-48
Identi#ication o# the #inancia$ state%ents 49-5+
Ba$ance Sheet 54-80A
#nformation to /e resented in t"e /a!ance s"eet 54-59
'urrent0non-current distinction 60-65
'urrent assets 66-68
'urrent !ia/i!ities 69-76
#nformation to /e resented eit"er in /a!ance s"eet
or in t"e notes
77-80A
State%ent o# pro#it and $oss 81-105
#nformation to /e resented in t"e statement of
rofit and !oss
82-87
Profit or !oss for t"e eriod 88-89
,t"er comre"ensi.e income for t"e eriod 90-96
#nformation to /e resented in t"e statement of
rofit and !oss or in t"e notes
97-105
State%ent o# changes in e)uit* 106-110
State%ent o# cash #$o+s 111
otes 112-1+8
$tructure 112-116
1isc!osure of accountin& o!icies 117-124
$ources of estimation uncertaint* 125-1++
'aita!
Putta/!e financia! instruments c!assified as e-uit*
1+4-1+6
1+6A
,t"er disc!osures 1+7-1+8
APPEDICES
Appendi, A 'e#erences to %atters contained in other Indian
Accounting Standards (Ind ASs)
Appendi, 1 Co%parison +ith IAS 1- Presentation of Financial
Statements
2
Indian Accounting Standard (Ind AS) 1
Presentation of Financial Statements
(This Indian Accounting Standard includes paragraphs set in bold type and plain
type, which have equal authority. Paragraphs in bold type indicate the main
principles).
O./ecti0e
1 T"is $tandard rescri/es t"e /asis for resentation of &enera! urose financia!
statements to ensure comara/i!it* /ot" wit" t"e entit*2s financia! statements of
re.ious eriods and wit" t"e financia! statements of ot"er entities3 #t sets out
o.era!! re-uirements for t"e resentation of financia! statements4 &uide!ines for
t"eir structure and minimum re-uirements for t"eir content3
Scope
2 An entit* sha$$ app$* this Standard in preparing and presenting genera$
purpose #inancia$ state%ents in accordance +ith Indian Accounting
Standards (Ind ASs)1
3 ,t"er #nd A$s set out t"e reco&nition4 measurement and disc!osure re-uirements
for secific transactions and ot"er e.ents3
4 T"is $tandard does not a!* to t"e structure and content of condensed interim
financia! statements reared in accordance wit" #nd A$ +4 Interim inancial
!eporting3 5owe.er4 ara&ra"s 15+5 a!* to suc" financia! statements3 T"is
$tandard a!ies e-ua!!* to a!! entities4 inc!udin& t"ose t"at resent conso!idated
financia! statements and t"ose t"at resent searate financia! statements as
defined in #nd A$ 27 "onsolidated and Separate inancial Statements3
5 T"is $tandard uses termino!o&* t"at is suita/!e for rofit-oriented entities4
inc!udin& u/!ic sector /usiness entities3 #f entities wit" not-for-rofit acti.ities in
t"e ri.ate sector or t"e u/!ic sector a!* t"is $tandard4 t"e* ma* need to
amend t"e descritions used for articu!ar !ine items in t"e financia! statements
and for t"e financia! statements t"emse!.es3
6 $imi!ar!*4 entities w"ose s"are caita! is not e-uit* ma* need to adat t"e
financia! statement resentation of mem/ers2 interests3
De#initions
2 The #o$$o+ing ter%s are used in this Standard +ith the %eanings speci#ied3
General purpose financial statements (re#erred to as 4#inancia$ state%ents5)
are those intended to %eet the needs o# users +ho are not in a position to
re)uire an entit* to prepare reports tai$ored to their particu$ar in#or%ation
needs1
3
Impracticable App$*ing a re)uire%ent is i%practica.$e +hen the entit*
cannot app$* it a#ter %a6ing e0er* reasona.$e e##ort to do so1
Indian Accounting Standards (Ind ASs) are Standards prescri.ed under
Section 711(8C) o# the Co%panies Act- 19:;1
Material O%issions or %isstate%ents o# ite%s are %ateria$ i# the* cou$d-
indi0idua$$* or co$$ecti0e$*- in#$uence the econo%ic decisions that users
%a6e on the .asis o# the #inancia$ state%ents1 "ateria$it* depends on the
si<e and nature o# the o%ission or %isstate%ent /udged in the surrounding
circu%stances1 The si<e or nature o# the ite%- or a co%.ination o# .oth-
cou$d .e the deter%ining #actor1
Assessin& w"et"er an omission or misstatement cou!d inf!uence economic
decisions of users4 and so /e materia!4 re-uires consideration of t"e
c"aracteristics of t"ose users3 T"e ramewor# $or the Preparation and
Presentation o$ inancial Statements issued /* t"e #nstitute of '"artered
Accountants of #ndia states in ara&ra" 25 t"at 6users are assumed to "a.e a
reasona/!e 7now!ed&e of /usiness and economic acti.ities and accountin& and a
wi!!in&ness to stud* t"e information wit" reasona/!e di!i&ence32 T"erefore4 t"e
assessment needs to ta7e into account "ow users wit" suc" attri/utes cou!d
reasona/!* /e e8ected to /e inf!uenced in ma7in& economic decisions3
Notes contain in#or%ation in addition to that presented in the .a$ance sheet
(inc$uding state%ent o# changes in e)uit* +hich is a part o# the .a$ance
sheet)- state%ent o# pro#it and $oss and state%ent o# cash #$o+s1 otes
pro0ide narrati0e descriptions or disaggregations o# ite%s presented in
those state%ents and in#or%ation a.out ite%s that do not )ua$i#* #or
recognition in those state%ents1
Other comprehensive income co%prises ite%s o# inco%e and e,pense
(inc$uding rec$assi#ication ad/ust%ents) that are not recognised in pro#it or
$oss as re)uired or per%itted .* other Ind ASs1
T"e comonents of ot"er comre"ensi.e income inc!ude9
:a; c"an&es in re.a!uation sur!us :see #nd A$ 16 Property, Plant and %quipment
and #nd A$ +8; Intangible Assets)<
:/; actuaria! &ains and !osses on defined /enefit !ans reco&nised in accordance
wit" ara&ra" 92 and 129A of #nd A$ 19 %mployee &ene$its<
:c; &ains and !osses arisin& from trans!atin& t"e financia! statements of a forei&n
oeration :see #nd A$ 21 The %$$ects o$ "hanges in oreign %'change
!ates;<
:d; &ains and !osses on remeasurin& a.ai!a/!e-for-sa!e financia! assets :see #nd
A$ +9 inancial Instruments( !ecognition and )easurement;<
:e; t"e effecti.e ortion of &ains and !osses on "ed&in& instruments in a cas"
f!ow "ed&e :see #nd A$ +9;3
Oners are ho$ders o# instru%ents c$assi#ied as e)uit*1
Profit or loss is the tota$ o# inco%e $ess e,penses- e,c$uding the
co%ponents o# other co%prehensi0e inco%e1
4
!eclassification ad"ustments are a%ounts rec$assi#ied to pro#it or $oss in
the current period that +ere recognised in other co%prehensi0e inco%e in
the current or pre0ious periods1
#otal comprehensive income is the change in e)uit* during a period
resu$ting #ro% transactions and other e0ents- other than those changes
resu$ting #ro% transactions +ith o+ners in their capacit* as o+ners1
Tota! comre"ensi.e income comrises a!! comonents of 6rofit or !oss2 and of
6ot"er comre"ensi.e income23
8 =>efer to Aendi8 1;?
8A3 T"e fo!!owin& terms are descri/ed in #nd A$ +2 inancial Instruments(
Presentation and are used in t"is $tandard wit" t"e meanin& secified in #nd A$
+29
:a; utta/!e financia! instrument c!assified as an e-uit* instrument :descri/ed in
ara&ra"s 16A and 16( of #nd A$ +2;
(b) an instrument t"at imoses on t"e entit* an o/!i&ation to de!i.er to anot"er
art* a ro rata s"are of t"e net assets of t"e entit* on!* on !i-uidation and is
c!assified as an e-uit* instrument :descri/ed in ara&ra"s 16' and 161 of #nd A$
+2;3
Financia$ state%ents
Purpose o# #inancia$ state%ents
9 Financia! statements are a structured reresentation of t"e financia! osition and
financia! erformance of an entit*3 T"e o/@ecti.e of financia! statements is to
ro.ide information a/out t"e financia! osition4 financia! erformance and cas"
f!ows of an entit* t"at is usefu! to a wide ran&e of users in ma7in& economic
decisions3 Financia! statements a!so s"ow t"e resu!ts of t"e mana&ement2s
stewards"i of t"e resources entrusted to it3 To meet t"is o/@ecti.e4 financia!
statements ro.ide information a/out an entit*2s9
:a; assets<
:/; !ia/i!ities<
:c; e-uit*<
:d; income and e8enses4 inc!udin& &ains and !osses<
:e; contri/utions /* and distri/utions to owners in t"eir caacit* as owners<
and
:f; cas" f!ows3
T"is information4 a!on& wit" ot"er information in t"e notes4 assists users of
financia! statements in redictin& t"e entit*2s future cas" f!ows and4 in articu!ar4
t"eir timin& and certaint*3
5
Co%p$ete set o# #inancia$ state%ents
1= A co%p$ete set o# #inancia$ state%ents co%prises3
(a) a .a$ance sheet as at the end o# the period (inc$uding state%ent o#
changes in e)uit* +hich is presented as a part o# the .a$ance sheet)>
(.) a state%ent o# pro#it and $oss #or the period>
(c) ?'e#er to Appendi, 1 @>
(d) a state%ent o# cash #$o+s #or the period>
(e) notes- co%prising a su%%ar* o# signi#icant accounting po$icies and
other e,p$anator* in#or%ation> and
(#) a .a$ance sheet as at the .eginning o# the ear$iest co%parati0e period
+hen an entit* app$ies an accounting po$ic* retrospecti0e$* or %a6es
a retrospecti0e restate%ent o# ite%s in its #inancia$ state%ents- or
+hen it rec$assi#ies ite%s in its #inancia$ state%ents1
11 An entit* sha$$ present +ith e)ua$ pro%inence a$$ o# the #inancia$
state%ents in a co%p$ete set o# #inancia$ state%ents1
12 As er ara&ra" 814 an entit* s"a!! resent t"e comonents of rofit or !oss
and comonents of ot"er comre"ensi.e income as art of a sin&!e statement
of rofit and !oss3
1+ )an* entities resent4 outside t"e financia! statements4 a financia! re.iew /*
mana&ement t"at descri/es and e8!ains t"e main features of t"e entit*2s
financia! erformance and financia! osition4 and t"e rincia! uncertainties it
faces3 $uc" a reort ma* inc!ude a re.iew of9
:a; t"e main factors and inf!uences determinin& financia! erformance4
inc!udin& c"an&es in t"e en.ironment in w"ic" t"e entit* oerates4 t"e
entit*2s resonse to t"ose c"an&es and t"eir effect4 and t"e entit*2s o!ic*
for in.estment to maintain and en"ance financia! erformance4 inc!udin& its
di.idend o!ic*<
:/; t"e entit*2s sources of fundin& and its tar&eted ratio of !ia/i!ities to e-uit*<
and
:c; t"e entit*2s resources not reco&nised in t"e /a!ance s"eet in accordance
wit" #nd A$s3
14 )an* entities a!so resent4 outside t"e financia! statements4 reorts and
statements suc" as en.ironmenta! reorts and .a!ue added statements4
articu!ar!* in industries in w"ic" en.ironmenta! factors are si&nificant and w"en
em!o*ees are re&arded as an imortant user &rou3 >eorts and statements
resented outside financia! statements are outside t"e scoe of #nd A$s3
&enera$ #eatures
Presentation o# True and Fair Vie+ and co%p$iance +ith Ind ASs
6
1: Financia$ state%ents sha$$ present a true and #air 0ie+ o# the #inancia$
position- #inancia$ per#or%ance and cash #$o+s o# an entit*1 Presentation
o# true and #air 0ie+ re)uires the #aith#u$ representation o# the e##ects o#
transactions- other e0ents and conditions in accordance +ith the
de#initions and recognition criteria #or assets- $ia.i$ities- inco%e and
e,penses set out in the Frameor$1 The app$ication o# Ind ASs- +ith
additiona$ disc$osure +hen necessar*- is presu%ed to resu$t in #inancia$
state%ents that present a true and #air 0ie+1
1; An entit* +hose #inancia$ state%ents co%p$* +ith Ind ASs sha$$ %a6e an
e,p$icit and unreser0ed state%ent o# such co%p$iance in the notes1 An
entit* sha$$ not descri.e #inancia$ state%ents as co%p$*ing +ith Ind ASs
un$ess the* co%p$* +ith a$$ the re)uire%ents o# Ind ASs1
17 #n .irtua!!* a!! circumstances4 resentation of a true and fair .iew is ac"ie.ed /*
com!iance wit" a!ica/!e #nd A$s3 Presentation of a true and fair .iew a!so
re-uires an entit*9
:a; to se!ect and a!* accountin& o!icies in accordance wit" #nd A$ 8
Accounting Policies, "hanges in Accounting %stimates and %rrors3 #nd A$
8 sets out a "ierarc"* of aut"oritati.e &uidance t"at mana&ement considers
in t"e a/sence of an #nd A$ t"at secifica!!* a!ies to an item3
:/; to resent information4 inc!udin& accountin& o!icies4 in a manner t"at
ro.ides re!e.ant4 re!ia/!e4 comara/!e and understanda/!e information3
:c; to ro.ide additiona! disc!osures w"en com!iance wit" t"e secific
re-uirements in #nd A$s is insufficient to ena/!e users to understand t"e
imact of articu!ar transactions4 ot"er e.ents and conditions on t"e entit*2s
financia! osition and financia! erformance3
1A An entit* cannot recti#* inappropriate accounting po$icies either .*
disc$osure o# the accounting po$icies used or .* notes or e,p$anator*
%ateria$1
19 In the e,tre%e$* rare circu%stances in +hich %anage%ent conc$udes that
co%p$iance +ith a re)uire%ent in an Ind AS +ou$d .e so %is$eading that it
+ou$d con#$ict +ith the o./ecti0e o# #inancia$ state%ents set out in the
Frameor$- the entit* sha$$ depart #ro% that re)uire%ent in the %anner set
out in paragraph 7= i# the re$e0ant regu$ator* #ra%e+or6 re)uires- or
other+ise does not prohi.it- such a departure1
7= Bhen an entit* departs #ro% a re)uire%ent o# an Ind AS in accordance
+ith paragraph 19- it sha$$ disc$ose3
(a) that %anage%ent has conc$uded that the #inancia$ state%ents present
a true and #air 0ie+ o# the entit*5s #inancia$ position- #inancia$
per#or%ance and cash #$o+s>
(.) that it has co%p$ied +ith app$ica.$e Ind ASs- e,cept that it has
departed #ro% a particu$ar re)uire%ent to present a true and #air
0ie+>
(c) the tit$e o# the Ind AS #ro% +hich the entit* has departed- the nature
o# the departure- inc$uding the treat%ent that the Ind AS +ou$d
re)uire- the reason +h* that treat%ent +ou$d .e so %is$eading in the
7
circu%stances that it +ou$d con#$ict +ith the o./ecti0e o# #inancia$
state%ents set out in the Frameor$- and the treat%ent adopted> and
(d) #or each period presented- the #inancia$ e##ect o# the departure on
each ite% in the #inancia$ state%ents that +ou$d ha0e .een reported in
co%p$*ing +ith the re)uire%ent1
71 Bhen an entit* has departed #ro% a re)uire%ent o# an Ind AS in a prior
period- and that departure a##ects the a%ounts recognised in the #inancia$
state%ents #or the current period- it sha$$ %a6e the disc$osures set out in
paragraph 7=(c) and (d)1
22 Para&ra" 21 a!ies4 for e8am!e4 w"en an entit* dearted in a rior eriod
from a re-uirement in an #nd A$ for t"e measurement of assets or !ia/i!ities and
t"at dearture affects t"e measurement of c"an&es in assets and !ia/i!ities
reco&nised in t"e current eriod2s financia! statements3
78 In the e,tre%e$* rare circu%stances in +hich %anage%ent conc$udes that
co%p$iance +ith a re)uire%ent in an Ind AS +ou$d .e so %is$eading that it
+ou$d con#$ict +ith the o./ecti0e o# #inancia$ state%ents set out in the
Frameor$- .ut the re$e0ant regu$ator* #ra%e+or6 prohi.its departure
#ro% the re)uire%ent- the entit* sha$$- to the %a,i%u% e,tent possi.$e-
reduce the percei0ed %is$eading aspects o# co%p$iance .* disc$osing3
(a) the tit$e o# the Ind AS in )uestion- the nature o# the re)uire%ent- and
the reason +h* %anage%ent has conc$uded that co%p$*ing +ith that
re)uire%ent is so %is$eading in the circu%stances that it con#$icts
+ith the o./ecti0e o# #inancia$ state%ents set out in the Frameor$>
and
(.) #or each period presented- the ad/ust%ents to each ite% in the
#inancia$ state%ents that %anage%ent has conc$uded +ou$d .e
necessar* to present a true and #air 0ie+1
24 For t"e urose of ara&ra"s 192+4 an item of information wou!d conf!ict wit"
t"e o/@ecti.e of financia! statements w"en it does not reresent fait"fu!!* t"e
transactions4 ot"er e.ents and conditions t"at it eit"er urorts to reresent or
cou!d reasona/!* /e e8ected to reresent and4 conse-uent!*4 it wou!d /e !i7e!*
to inf!uence economic decisions made /* users of financia! statements3 A"en
assessin& w"et"er com!*in& wit" a secific re-uirement in an #nd A$ wou!d /e
so mis!eadin& t"at it wou!d conf!ict wit" t"e o/@ecti.e of financia! statements set
out in t"e ramewor#4 mana&ement considers9
:a; w"* t"e o/@ecti.e of financia! statements is not ac"ie.ed in t"e articu!ar
circumstances< and
:/; "ow t"e entit*2s circumstances differ from t"ose of ot"er entities t"at
com!* wit" t"e re-uirement3 #f ot"er entities in simi!ar circumstances
com!* wit" t"e re-uirement4 t"ere is a re/utta/!e resumtion t"at t"e
entit*2s com!iance wit" t"e re-uirement wou!d not /e so mis!eadin& t"at it
wou!d conf!ict wit" t"e o/@ecti.e of financia! statements set out in t"e
ramewor#3
&oing concern
8
7: Bhen preparing #inancia$ state%ents- %anage%ent sha$$ %a6e an
assess%ent o# an entit*5s a.i$it* to continue as a going concern1 An entit*
sha$$ prepare #inancia$ state%ents on a going concern .asis un$ess
%anage%ent either intends to $i)uidate the entit* or to cease trading- or
has no rea$istic a$ternati0e .ut to do so1 Bhen %anage%ent is a+are- in
%a6ing its assess%ent- o# %ateria$ uncertainties re$ated to e0ents or
conditions that %a* cast signi#icant dou.t upon the entit*5s a.i$it* to
continue as a going concern- the entit* sha$$ disc$ose those uncertainties1
Bhen an entit* does not prepare #inancia$ state%ents on a going concern
.asis- it sha$$ disc$ose that #act- together +ith the .asis on +hich it
prepared the #inancia$ state%ents and the reason +h* the entit* is not
regarded as a going concern1
26 #n assessin& w"et"er t"e &oin& concern assumtion is aroriate4
mana&ement ta7es into account a!! a.ai!a/!e information a/out t"e future4 w"ic"
is at !east4 /ut is not !imited to4 twe!.e mont"s from t"e end of t"e reortin&
eriod3 T"e de&ree of consideration deends on t"e facts in eac" case3 A"en
an entit* "as a "istor* of rofita/!e oerations and read* access to financia!
resources4 t"e entit* ma* reac" a conc!usion t"at t"e &oin& concern /asis of
accountin& is aroriate wit"out detai!ed ana!*sis3 #n ot"er cases4
mana&ement ma* need to consider a wide ran&e of factors re!atin& to current
and e8ected rofita/i!it*4 de/t rea*ment sc"edu!es and otentia! sources of
re!acement financin& /efore it can satisf* itse!f t"at t"e &oin& concern /asis is
aroriate3
Accrua$ .asis o# accounting
72 An entit* sha$$ prepare its #inancia$ state%ents- e,cept #or cash #$o+
in#or%ation- using the accrua$ .asis o# accounting1
28 A"en t"e accrua! /asis of accountin& is used4 an entit* reco&nises items as
assets4 !ia/i!ities4 e-uit*4 income and e8enses :t"e e!ements of financia!
statements; w"en t"e* satisf* t"e definitions and reco&nition criteria for t"ose
e!ements in t"e ramewor#3
"ateria$it* and aggregation
79 An entit* sha$$ present separate$* each %ateria$ c$ass o# si%i$ar ite%s1 An
entit* sha$$ present separate$* ite%s o# a dissi%i$ar nature or #unction
un$ess the* are i%%ateria$ e,cept +hen re)uired .* $a+1
+0 Financia! statements resu!t from rocessin& !ar&e num/ers of transactions or
ot"er e.ents t"at are a&&re&ated into c!asses accordin& to t"eir nature or
function3 T"e fina! sta&e in t"e rocess of a&&re&ation and c!assification is t"e
resentation of condensed and c!assified data4 w"ic" form !ine items in t"e
financia! statements3 #f a !ine item is not indi.idua!!* materia!4 it is a&&re&ated
wit" ot"er items eit"er in t"ose statements or in t"e notes3 An item t"at is not
sufficient!* materia! to warrant searate resentation in t"ose statements ma*
warrant searate resentation in t"e notes3
+1 An entit* need not ro.ide a secific disc!osure re-uired /* an #nd A$ if t"e
information is not materia! e8cet w"en re-uired /* !aw3
O##setting
9
87 An entit* sha$$ not o##set assets and $ia.i$ities or inco%e and e,penses-
un$ess re)uired or per%itted .* an Ind AS1
++ An entit* reorts searate!* /ot" assets and !ia/i!ities4 and income and
e8enses3 ,ffsettin& in t"e statements of rofit and !oss or /a!ance s"eet4
e8cet w"en offsettin& ref!ects t"e su/stance of t"e transaction or ot"er e.ent4
detracts from t"e a/i!it* of users /ot" to understand t"e transactions4 ot"er
e.ents and conditions t"at "a.e occurred and to assess t"e entit*2s future cas"
f!ows3 )easurin& assets net of .a!uation a!!owancesBfor e8am!e4
o/so!escence a!!owances on in.entories and dou/tfu! de/ts a!!owances on
recei.a/!esBis not offsettin&3
+4 #nd A$ 18 !evenue defines re.enue and re-uires an entit* to measure it at t"e
fair .a!ue of t"e consideration recei.ed or recei.a/!e4 ta7in& into account t"e
amount of an* trade discounts and .o!ume re/ates t"e entit* a!!ows3 An entit*
underta7es4 in t"e course of its ordinar* acti.ities4 ot"er transactions t"at do not
&enerate re.enue /ut are incidenta! to t"e main re.enue-&eneratin& acti.ities3
An entit* resents t"e resu!ts of suc" transactions4 w"en t"is resentation
ref!ects t"e su/stance of t"e transaction or ot"er e.ent4 /* nettin& an* income
wit" re!ated e8enses arisin& on t"e same transaction3 For e8am!e9
:a; an entit* resents &ains and !osses on t"e disosa! of non-current assets4
inc!udin& in.estments and oeratin& assets4 /* deductin& from t"e
roceeds on disosa! t"e carr*in& amount of t"e asset and re!ated se!!in&
e8enses< and
:/; an entit* ma* net e8enditure re!ated to a ro.ision t"at is reco&nised in
accordance wit" #nd A$ +7 Provisions, "ontingent *iabilities and
"ontingent Assets and reim/ursed under a contractua! arran&ement wit"
a t"ird art* :for e8am!e4 a su!ier2s warrant* a&reement; a&ainst t"e
re!ated reim/ursement3
+5 #n addition4 an entit* resents on a net /asis &ains and !osses arisin& from a
&rou of simi!ar transactions4 for e8am!e4 forei&n e8c"an&e &ains and !osses or
&ains and !osses arisin& on financia! instruments "e!d for tradin&3 5owe.er4 an
entit* resents suc" &ains and !osses searate!* if t"e* are materia!3
Fre)uenc* o# reporting
8; An entit* sha$$ present a co%p$ete set o# #inancia$ state%ents (inc$uding
co%parati0e in#or%ation) at $east annua$$*1 Bhen an entit* changes the
end o# its reporting period and presents #inancia$ state%ents #or a period
$onger or shorter than one *ear- an entit* sha$$ disc$ose- in addition to the
period co0ered .* the #inancia$ state%ents3
(a) the reason #or using a $onger or shorter period- and
(.) the #act that a%ounts presented in the #inancia$ state%ents are not
entire$* co%para.$e1
+7 =>efer to Aendi8 1?
Co%parati0e in#or%ation
10
8A E,cept +hen Ind ASs per%it or re)uire other+ise- an entit* sha$$ disc$ose
co%parati0e in#or%ation in respect o# the pre0ious period #or a$$ a%ounts
reported in the current period5s #inancia$ state%ents1 An entit* sha$$
inc$ude co%parati0e in#or%ation #or narrati0e and descripti0e in#or%ation
+hen it is re$e0ant to an understanding o# the current period5s #inancia$
state%ents1
+9 An entit* disc!osin& comarati.e information s"a!! resent4 as a minimum4 two
/a!ance s"eets4 two of eac" of t"e ot"er statements4 and re!ated notes3 A"en
an entit* a!ies an accountin& o!ic* retrosecti.e!* or ma7es a retrosecti.e
restatement of items in its financia! statements or w"en it rec!assifies items in its
financia! statements4 it s"a!! resent4 as a minimum4 t"ree /a!ance s"eets4 two
of eac" of t"e ot"er statements4 and re!ated notes3 An entit* resents /a!ance
s"eets as at9
:a; t"e end of t"e current eriod4
:/; t"e end of t"e re.ious eriod :w"ic" is t"e same as t"e /e&innin& of t"e
current eriod;4 and
:c; t"e /e&innin& of t"e ear!iest comarati.e eriod3
40 #n some cases4 narrati.e information ro.ided in t"e financia! statements for t"e
re.ious eriod:s; continues to /e re!e.ant in t"e current eriod3 For e8am!e4
an entit* disc!oses in t"e current eriod detai!s of a !e&a! disute w"ose
outcome was uncertain at t"e end of t"e immediate!* recedin& reortin& eriod
and t"at is *et to /e reso!.ed3 Csers /enefit from information t"at t"e
uncertaint* e8isted at t"e end of t"e immediate!* recedin& reortin& eriod4
and a/out t"e stes t"at "a.e /een ta7en durin& t"e eriod to reso!.e t"e
uncertaint*3
C1 Bhen the entit* changes the presentation or c$assi#ication o# ite%s in its
#inancia$ state%ents- the entit* sha$$ rec$assi#* co%parati0e a%ounts
un$ess rec$assi#ication is i%practica.$e1 Bhen the entit* rec$assi#ies
co%parati0e a%ounts- the entit* sha$$ disc$ose3
(a) the nature o# the rec$assi#ication>
(.) the a%ount o# each ite% or c$ass o# ite%s that is rec$assi#ied> and
(c) the reason #or the rec$assi#ication1
C7 Bhen it is i%practica.$e to rec$assi#* co%parati0e a%ounts- an entit* sha$$
disc$ose3
(a) the reason #or not rec$assi#*ing the a%ounts- and
(.) the nature o# the ad/ust%ents that +ou$d ha0e .een %ade i# the
a%ounts had .een rec$assi#ied1
4+ Dn"ancin& t"e inter-eriod comara/i!it* of information assists users in ma7in&
economic decisions4 esecia!!* /* a!!owin& t"e assessment of trends in financia!
information for redicti.e uroses3 #n some circumstances4 it is imractica/!e
to rec!assif* comarati.e information for a articu!ar rior eriod to ac"ie.e
comara/i!it* wit" t"e current eriod3 For e8am!e4 an entit* ma* not "a.e
11
co!!ected data in t"e rior eriod:s; in a wa* t"at a!!ows rec!assification4 and it
ma* /e imractica/!e to recreate t"e information3
44 #nd A$ 8 sets out t"e ad@ustments to comarati.e information re-uired w"en an
entit* c"an&es an accountin& o!ic* or corrects an error3
Consistenc* o# presentation
C: An entit* sha$$ retain the presentation and c$assi#ication o# ite%s in the
#inancia$ state%ents #ro% one period to the ne,t un$ess3
(a) it is apparent- #o$$o+ing a signi#icant change in the nature o# the
entit*5s operations or a re0ie+ o# its #inancia$ state%ents- that another
presentation or c$assi#ication +ou$d .e %ore appropriate ha0ing
regard to the criteria #or the se$ection and app$ication o# accounting
po$icies in Ind AS A> or
(.) an Ind AS re)uires a change in presentation1
46 For e8am!e4 a si&nificant ac-uisition or disosa!4 or a re.iew of t"e
resentation of t"e financia! statements4 mi&"t su&&est t"at t"e financia!
statements need to /e resented different!*3 An entit* c"an&es t"e resentation
of its financia! statements on!* if t"e c"an&ed resentation ro.ides information
t"at is re!ia/!e and more re!e.ant to users of t"e financia! statements and t"e
re.ised structure is !i7e!* to continue4 so t"at comara/i!it* is not imaired3
A"en ma7in& suc" c"an&es in resentation4 an entit* rec!assifies its
comarati.e information in accordance wit" ara&ra"s 41 and 423
Structure and content
Introduction
47 T"is $tandard re-uires articu!ar disc!osures in t"e /a!ance s"eet :inc!udin&
statement of c"an&es in e-uit* w"ic" is a art of t"e /a!ance s"eet; or in t"e
statement of rofit and !oss and re-uires disc!osure of ot"er !ine items eit"er in
t"ose statements or in t"e notes3 #nd A$ 7 Statement o$ "ash lows sets out
re-uirements for t"e resentation of cas" f!ow information3
48 T"is $tandard sometimes uses t"e term 6disc!osure2 in a /road sense4
encomassin& items resented in t"e financia! statements3 1isc!osures are a!so
re-uired /* ot"er #nd A$s3 Cn!ess secified to t"e contrar* e!sew"ere in t"is
$tandard or in anot"er #nd A$4 suc" disc!osures ma* /e made in t"e financia!
statements3
Identi#ication o# the #inancia$ state%ents
C9 An entit* sha$$ c$ear$* identi#* the #inancia$ state%ents and distinguish
the% #ro% other in#or%ation in the sa%e pu.$ished docu%ent1
50 #nd A$s a!* on!* to financia! statements4 and not necessari!* to ot"er
information resented in an annua! reort4 a re&u!ator* fi!in&4 or anot"er
document3 T"erefore4 it is imortant t"at users can distin&uis" information t"at
12
is reared usin& #nd A$s from ot"er information t"at ma* /e usefu! to users
/ut is not t"e su/@ect of t"ose re-uirements3
:1 An entit* sha$$ c$ear$* identi#* each #inancia$ state%ent and the notes1 In
addition- an entit* sha$$ disp$a* the #o$$o+ing in#or%ation pro%inent$*- and
repeat it +hen necessar* #or the in#or%ation presented to .e
understanda.$e3
(a)the na%e o# the reporting entit* or other %eans o# identi#ication- and
an* change in that in#or%ation #ro% the end o# the preceding
reporting period>
(.) +hether the #inancia$ state%ents are o# an indi0idua$ entit* or a group
o# entities>
(c)the date o# the end o# the reporting period or the period co0ered .* the
set o# #inancia$ state%ents or notes>
(d) the presentation currenc*- as de#ined in Ind AS 71> and
(e) the $e0e$ o# rounding used in presenting a%ounts in the #inancia$
state%ents1
52 An entit* meets t"e re-uirements in ara&ra" 51 /* resentin& aroriate
"eadin&s for a&es4 statements4 notes4 co!umns and t"e !i7e3 Eud&ement is
re-uired in determinin& t"e /est wa* of resentin& suc" information3 For
e8am!e4 w"en an entit* resents t"e financia! statements e!ectronica!!*4
searate a&es are not a!wa*s used< an entit* t"en resents t"e a/o.e items
to ensure t"at t"e information inc!uded in t"e financia! statements can /e
understood3
5+ An entit* often ma7es financia! statements more understanda/!e /* resentin&
information in t"ousands4 !a7"s4 mi!!ions or crores of units of t"e resentation
currenc*3 T"is is acceta/!e as !on& as t"e entit* disc!oses t"e !e.e! of
roundin& and does not omit materia! information3
Ba$ance Sheet
In#or%ation to .e presented in the .a$ance sheet
:C As a %ini%u%- the .a$ance sheet sha$$ inc$ude $ine ite%s that present the
#o$$o+ing a%ounts3
(a) propert*- p$ant and e)uip%ent>
(.) in0est%ent propert*>
(c) intangi.$e assets>
(d) #inancia$ assets (e,c$uding a%ounts sho+n under (e)- (h) and (i))>
(e) in0est%ents accounted #or using the e)uit* %ethod>
(#) .io$ogica$ assets>
(g) in0entories>
(h) trade and other recei0a.$es>
13
(i) cash and cash e)ui0a$ents>
(/) the tota$ o# assets c$assi#ied as he$d #or sa$e and assets inc$uded
in disposa$ groups c$assi#ied as he$d #or sa$e in accordance +ith
Ind AS 1=: Non%current Assets &eld for Sale and 'iscontinued
Operations>
(6) trade and other pa*a.$es>
($) pro0isions>
(%) #inancia$ $ia.i$ities (e,c$uding a%ounts sho+n under (6) and ($))>
(n) $ia.i$ities and assets #or current ta,- as de#ined in Ind AS 17
Income #a(es>
(o) de#erred ta, $ia.i$ities and de#erred ta, assets- as de#ined in Ind
AS 17>
(p) $ia.i$ities inc$uded in disposa$ groups c$assi#ied as he$d #or sa$e
in accordance +ith Ind AS 1=:>
()) nonDcontro$$ing interests- presented +ithin e)uit*> and
(r) issued capita$ and reser0es attri.uta.$e to o+ners o# the parent1
55 An entit* sha$$ present additiona$ $ine ite%s- headings and su.tota$s in the
.a$ance sheet +hen such presentation is re$e0ant to an understanding o#
the entit*5s #inancia$ position1
:; Bhen an entit* presents current and nonDcurrent assets- and current and
nonDcurrent $ia.i$ities- as separate c$assi#ications in its .a$ance sheet- it
sha$$ not c$assi#* de#erred ta, assets ($ia.i$ities) as current assets
($ia.i$ities)1
57 T"is $tandard does not rescri/e t"e order or format in w"ic" an entit* resents
items3 Para&ra" 54 sim!* !ists items t"at are sufficient!* different in nature or
function to warrant searate resentation in t"e /a!ance s"eet3 #n addition9
:a; !ine items are inc!uded w"en t"e siFe4 nature or function of an item or
a&&re&ation of simi!ar items is suc" t"at searate resentation is re!e.ant
to an understandin& of t"e entit*2s financia! osition< and
:/; t"e descritions used and t"e orderin& of items or a&&re&ation of simi!ar
items ma* /e amended accordin& to t"e nature of t"e entit* and its
transactions4 to ro.ide information t"at is re!e.ant to an understandin& of
t"e entit*2s financia! osition3 For e8am!e4 a financia! institution ma*
amend t"e a/o.e descritions to ro.ide information t"at is re!e.ant to t"e
oerations of a financia! institution3
58 An entit* ma7es t"e @ud&ement a/out w"et"er to resent additiona! items
searate!* on t"e /asis of an assessment of9
:a; t"e nature and !i-uidit* of assets<
:/; t"e function of assets wit"in t"e entit*< and
:c; t"e amounts4 nature and timin& of !ia/i!ities3
14
59 T"e use of different measurement /ases for different c!asses of assets
su&&ests t"at t"eir nature or function differs and4 t"erefore4 t"at an entit*
resents t"em as searate !ine items3 For e8am!e4 different c!asses of
roert*4 !ant and e-uiment can /e carried at cost or at re.a!ued amounts in
accordance wit" #nd A$ 163
CurrentEnonDcurrent distinction
;= An entit* sha$$ present current and nonDcurrent assets- and current and
nonDcurrent $ia.i$ities- as separate c$assi#ications in its .a$ance sheet in
accordance +ith paragraphs ;;F2; e,cept +hen a presentation .ased on
$i)uidit* pro0ides in#or%ation that is re$ia.$e and %ore re$e0ant1 Bhen that
e,ception app$ies- an entit* sha$$ present a$$ assets and $ia.i$ities in order
o# $i)uidit*1
;1 Bhiche0er %ethod o# presentation is adopted- an entit* sha$$ disc$ose the
a%ount e,pected to .e reco0ered or sett$ed a#ter %ore than t+e$0e
%onths #or each asset and $ia.i$it* $ine ite% that co%.ines a%ounts
e,pected to .e reco0ered or sett$ed3
(a) no %ore than t+e$0e %onths a#ter the reporting period- and
(.) %ore than t+e$0e %onths a#ter the reporting period1
62 A"en an entit* su!ies &oods or ser.ices wit"in a c!ear!* identifia/!e oeratin&
c*c!e4 searate c!assification of current and non-current assets and !ia/i!ities in
t"e /a!ance s"eet ro.ides usefu! information /* distin&uis"in& t"e net assets
t"at are continuous!* circu!atin& as wor7in& caita! from t"ose used in t"e
entit*2s !on&-term oerations3 #t a!so "i&"!i&"ts assets t"at are e8ected to /e
rea!ised wit"in t"e current oeratin& c*c!e4 and !ia/i!ities t"at are due for
sett!ement wit"in t"e same eriod3
6+ For some entities4 suc" as financia! institutions4 a resentation of assets and
!ia/i!ities in increasin& or decreasin& order of !i-uidit* ro.ides information t"at
is re!ia/!e and more re!e.ant t"an a current0non-current resentation /ecause
t"e entit* does not su!* &oods or ser.ices wit"in a c!ear!* identifia/!e
oeratin& c*c!e3
64 #n a!*in& ara&ra" 604 an entit* is ermitted to resent some of its assets
and !ia/i!ities usin& a current0non-current c!assification and ot"ers in order of
!i-uidit* w"en t"is ro.ides information t"at is re!ia/!e and more re!e.ant3 T"e
need for a mi8ed /asis of resentation mi&"t arise w"en an entit* "as di.erse
oerations3
65 #nformation a/out e8ected dates of rea!isation of assets and !ia/i!ities is usefu!
in assessin& t"e !i-uidit* and so!.enc* of an entit*3 #nd A$ 107 inancial
Instruments( +isclosures re-uires disc!osure of t"e maturit* dates of financia!
assets and financia! !ia/i!ities3 Financia! assets inc!ude trade and ot"er
recei.a/!es4 and financia! !ia/i!ities inc!ude trade and ot"er a*a/!es3
#nformation on t"e e8ected date of reco.er* of non-monetar* assets suc" as
in.entories and e8ected date of sett!ement for !ia/i!ities suc" as ro.isions is
a!so usefu!4 w"et"er assets and !ia/i!ities are c!assified as current or as non-
current3 For e8am!e4 an entit* disc!oses t"e amount of in.entories t"at are
e8ected to /e reco.ered more t"an twe!.e mont"s after t"e reortin& eriod3
15
Current assets
;; An entit* sha$$ c$assi#* an asset as current +hen3
(a) it e,pects to rea$ise the asset- or intends to se$$ or consu%e it- in its
nor%a$ operating c*c$e>
(.) it ho$ds the asset pri%ari$* #or the purpose o# trading>
(c) it e,pects to rea$ise the asset +ithin t+e$0e %onths a#ter the reporting
period> or
(d) the asset is cash or a cash e)ui0a$ent (as de#ined in Ind AS 2) un$ess
the asset is restricted #ro% .eing e,changed or used to sett$e a
$ia.i$it* #or at $east t+e$0e %onths a#ter the reporting period1
An entit* sha$$ c$assi#* a$$ other assets as nonDcurrent1
67 T"is $tandard uses t"e term 6non-current2 to inc!ude tan&i/!e4 intan&i/!e and
financia! assets of a !on&-term nature3 #t does not ro"i/it t"e use of a!ternati.e
descritions as !on& as t"e meanin& is c!ear3
68 T"e oeratin& c*c!e of an entit* is t"e time /etween t"e ac-uisition of assets for
rocessin& and t"eir rea!isation in cas" or cas" e-ui.a!ents3 A"en t"e entit*2s
norma! oeratin& c*c!e is not c!ear!* identifia/!e4 it is assumed to /e twe!.e
mont"s3 'urrent assets inc!ude assets :suc" as in.entories and trade
recei.a/!es; t"at are so!d4 consumed or rea!ised as art of t"e norma! oeratin&
c*c!e e.en w"en t"e* are not e8ected to /e rea!ised wit"in twe!.e mont"s after
t"e reortin& eriod3 'urrent assets a!so inc!ude assets "e!d rimari!* for t"e
urose of tradin& :e8am!es inc!ude some financia! assets c!assified as "e!d
for tradin& in accordance wit" #nd A$ +9; and t"e current ortion of non-current
financia! assets3
Current $ia.i$ities
;9 An entit* sha$$ c$assi#* a $ia.i$it* as current +hen3
(a) it e,pects to sett$e the $ia.i$it* in its nor%a$ operating c*c$e>
(.) it ho$ds the $ia.i$it* pri%ari$* #or the purpose o# trading>
(c) the $ia.i$it* is due to .e sett$ed +ithin t+e$0e %onths a#ter the
reporting period> or
(d) it does not ha0e an unconditiona$ right to de#er sett$e%ent o# the
$ia.i$it* #or at $east t+e$0e %onths a#ter the reporting period (see
paragraph 28)1 Ter%s o# a $ia.i$it* that cou$d- at the option o# the
counterpart*- resu$t in its sett$e%ent .* the issue o# e)uit*
instru%ents do not a##ect its c$assi#ication1
An entit* sha$$ c$assi#* a$$ other $ia.i$ities as nonDcurrent1
70 $ome current !ia/i!ities4 suc" as trade a*a/!es and some accrua!s for
em!o*ee and ot"er oeratin& costs4 are art of t"e wor7in& caita! used in t"e
entit*2s norma! oeratin& c*c!e3 An entit* c!assifies suc" oeratin& items as
current !ia/i!ities e.en if t"e* are due to /e sett!ed more t"an twe!.e mont"s
after t"e reortin& eriod3 T"e same norma! oeratin& c*c!e a!ies to t"e
16
c!assification of an entit*2s assets and !ia/i!ities3 A"en t"e entit*2s norma!
oeratin& c*c!e is not c!ear!* identifia/!e4 it is assumed to /e twe!.e mont"s3
71 ,t"er current !ia/i!ities are not sett!ed as art of t"e norma! oeratin& c*c!e4 /ut
are due for sett!ement wit"in twe!.e mont"s after t"e reortin& eriod or "e!d
rimari!* for t"e urose of tradin&3 D8am!es are some financia! !ia/i!ities
c!assified as "e!d for tradin& in accordance wit" #nd A$ +94 /an7 o.erdrafts4 and
t"e current ortion of non-current financia! !ia/i!ities4 di.idends a*a/!e4 income
ta8es and ot"er non-trade a*a/!es3 Financia! !ia/i!ities t"at ro.ide financin&
on a !on&-term /asis :ie are not art of t"e wor7in& caita! used in t"e entit*2s
norma! oeratin& c*c!e; and are not due for sett!ement wit"in twe!.e mont"s
after t"e reortin& eriod are non-current !ia/i!ities4 su/@ect to ara&ra"s 74
and 753
72 An entit* c!assifies its financia! !ia/i!ities as current w"en t"e* are due to /e
sett!ed wit"in twe!.e mont"s after t"e reortin& eriod4 e.en if9
:a; t"e ori&ina! term was for a eriod !on&er t"an twe!.e mont"s4 and
:/; an a&reement to refinance4 or to resc"edu!e a*ments4 on a !on&-term
/asis is com!eted after t"e reortin& eriod and /efore t"e financia!
statements are aro.ed for issue3
7+ #f an entit* e8ects4 and "as t"e discretion4 to refinance or ro!! o.er an o/!i&ation
for at !east twe!.e mont"s after t"e reortin& eriod under an e8istin& !oan
faci!it*4 it c!assifies t"e o/!i&ation as non-current4 e.en if it wou!d ot"erwise /e
due wit"in a s"orter eriod3 5owe.er4 w"en refinancin& or ro!!in& o.er t"e
o/!i&ation is not at t"e discretion of t"e entit* :for e8am!e4 t"ere is no
arran&ement for refinancin&;4 t"e entit* does not consider t"e otentia! to
refinance t"e o/!i&ation and c!assifies t"e o/!i&ation as current3
74 A"en an entit* /reac"es a ro.ision of a !on&-term !oan arran&ement on or
/efore t"e end of t"e reortin& eriod wit" t"e effect t"at t"e !ia/i!it* /ecomes
a*a/!e on demand4 it c!assifies t"e !ia/i!it* as current4 e.en if t"e !ender
a&reed4 after t"e reortin& eriod and /efore t"e aro.a! of t"e financia!
statements for issue4 not to demand a*ment as a conse-uence of t"e /reac"3
An entit* c!assifies t"e !ia/i!it* as current /ecause4 at t"e end of t"e reortin&
eriod4 it does not "a.e an unconditiona! ri&"t to defer its sett!ement for at !east
twe!.e mont"s after t"at date3
75 5owe.er4 an entit* c!assifies t"e !ia/i!it* as non-current if t"e !ender a&reed /*
t"e end of t"e reortin& eriod to ro.ide a eriod of &race endin& at !east
twe!.e mont"s after t"e reortin& eriod4 wit"in w"ic" t"e entit* can rectif* t"e
/reac" and durin& w"ic" t"e !ender cannot demand immediate rea*ment3
76 #n resect of !oans c!assified as current !ia/i!ities4 if t"e fo!!owin& e.ents occur
/etween t"e end of t"e reortin& eriod and t"e date t"e financia! statements
are aro.ed for issue4 t"ose e.ents are disc!osed as non-ad@ustin& e.ents in
accordance wit" #nd A$ 10 %vents a$ter the !eporting Period9
:a; refinancin& on a !on&-term /asis<
:/; rectification of a /reac" of a !on&-term !oan arran&ement< and
17
:c; t"e &rantin& /* t"e !ender of a eriod of &race to rectif* a /reac" of a !on&-
term !oan arran&ement endin& at !east twe!.e mont"s after t"e reortin&
eriod3
In#or%ation to .e presented either in the .a$ance sheet or in the
notes
22 An entit* sha$$ disc$ose- either in the .a$ance sheet or in the notes- #urther
su.c$assi#ications o# the $ine ite%s presented- c$assi#ied in a %anner
appropriate to the entit*5s operations1
78 T"e detai! ro.ided in su/c!assifications deends on t"e re-uirements of #nd
A$s and on t"e siFe4 nature and function of t"e amounts in.o!.ed3 An entit* a!so
uses t"e factors set out in ara&ra" 58 to decide t"e /asis of su/c!assification3
T"e disc!osures .ar* for eac" item4 for e8am!e9
:a; items of roert*4 !ant and e-uiment are disa&&re&ated into c!asses in
accordance wit" #nd A$ 16<
:/; recei.a/!es are disa&&re&ated into amounts recei.a/!e from trade
customers4 recei.a/!es from re!ated arties4 rea*ments and ot"er
amounts<
:c; in.entories are disa&&re&ated4 in accordance wit" #nd A$ 2 Inventories4
into c!assifications suc" as merc"andise4 roduction su!ies4 materia!s4
wor7 in ro&ress and finis"ed &oods<
:d; ro.isions are disa&&re&ated into ro.isions for em!o*ee /enefits and
ot"er items< and
:e; e-uit* caita! and reser.es are disa&&re&ated into .arious c!asses4 suc" as
aid-in caita!4 s"are remium and reser.es3
29 An entit* sha$$ disc$ose the #o$$o+ing- either in the .a$ance sheet or in the
state%ent o# changes in e)uit* +hich is part o# the .a$ance sheet- or in
the notes3
(a) #or each c$ass o# share capita$3
(i) the nu%.er o# shares authorised>
(ii) the nu%.er o# shares issued and #u$$* paid- and issued .ut not
#u$$* paid>
(iii) par 0a$ue per share- or that the shares ha0e no par 0a$ue>
(i0) a reconci$iation o# the nu%.er o# shares outstanding at the
.eginning and at the end o# the period>
(0) the rights- pre#erences and restrictions attaching to that c$ass
inc$uding restrictions on the distri.ution o# di0idends and the
repa*%ent o# capita$>
(0i) shares in the entit* he$d .* the entit* or .* its su.sidiaries or
associates> and
(0ii) shares reser0ed #or issue under options and contracts #or the
sa$e o# shares- inc$uding ter%s and a%ounts> and
(.) a description o# the nature and purpose o# each reser0e1
18
A= An entit* +hose capita$ is not $i%ited .* shares e1g1- a co%pan* $i%ited
.* guarantee- sha$$ disc$ose in#or%ation e)ui0a$ent to that re)uired .*
paragraph 29(a)- sho+ing changes during the period in each categor* o#
e)uit* interest- and the rights- pre#erences and restrictions attaching to
each categor* o# e)uit* interest1
A=A I# an entit* has rec$assi#ied
(a) a putta.$e #inancia$ instru%ent c$assi#ied as an e)uit* instru%ent-
or
(.) an instru%ent that i%poses on the entit* an o.$igation to de$i0er to
another part* a pro rata share o# the net assets o# the entit* on$*
on $i)uidation and is c$assi#ied as an e)uit* instru%ent
.et+een #inancia$ $ia.i$ities and e)uit*- it sha$$ disc$ose the a%ount
rec$assi#ied into and out o# each categor* (#inancia$ $ia.i$ities or e)uit*)-
and the ti%ing and reason #or that rec$assi#ication1
State%ent o# Pro#it and !oss
A1 An entit* sha$$ present a$$ ite%s o# inco%e and e,pense inc$uding
co%ponents o# other co%prehensi0e inco%e recognised in a period in a
sing$e state%ent o# pro#it and $oss1
In#or%ation to .e presented in the state%ent o# pro#it and $oss
A7 As a %ini%u%- the state%ent o# pro#it and $oss sha$$ inc$ude $ine ite%s
that present the #o$$o+ing a%ounts #or the period3
(a) re0enue>
(.) #inance costs>
(c) share o# the pro#it or $oss o# associates and /oint 0entures
accounted #or using the e)uit* %ethod>
(d) ta, e,pense>
(e) a sing$e a%ount co%prising the tota$ o#3
(i) the postDta, pro#it or $oss o# discontinued operations and
(ii) the postDta, gain or $oss recognised on the %easure%ent
to #air 0a$ue $ess costs to se$$ or on the disposa$ o# the
assets or disposa$ group(s) constituting the discontinued
operation>
(#) pro#it or $oss>
(g) each co%ponent o# other co%prehensi0e inco%e c$assi#ied .*
nature (e,c$uding a%ounts in (h))>
(h) share o# the other co%prehensi0e inco%e o# associates and /oint
0entures accounted #or using the e)uit* %ethod> and
(i) tota$ co%prehensi0e inco%e1
19
A8 An entit* sha$$ disc$ose the #o$$o+ing ite%s in the state%ent o# pro#it and
$oss as a$$ocations #or the period3
(a) pro#it or $oss #or the period attri.uta.$e to3
(i) nonDcontro$$ing interests- and
(ii) o+ners o# the parent1
(.) tota$ co%prehensi0e inco%e #or the period attri.uta.$e to3
(i) nonDcontro$$ing interests- and
(ii) o+ners o# the parent1
AC ?'e#er to Appendi, 1@
A: An entit* sha$$ present additiona$ $ine ite%s- headings and su.tota$s in the
state%ent o# pro#it and $oss- +hen such presentation is re$e0ant to an
understanding o# the entit*5s #inancia$ per#or%ance1
86 (ecause t"e effects of an entit*2s .arious acti.ities4 transactions and ot"er
e.ents differ in fre-uenc*4 otentia! for &ain or !oss and redicta/i!it*4 disc!osin&
t"e comonents of financia! erformance assists users in understandin& t"e
financia! erformance ac"ie.ed and in ma7in& ro@ections of future financia!
erformance3 An entit* inc!udes additiona! !ine items in t"e statement of rofit
and !oss4 and it amends t"e descritions used and t"e orderin& of items w"en
t"is is necessar* to e8!ain t"e e!ements of financia! erformance3 An entit*
considers factors inc!udin& materia!it* and t"e nature and function of t"e items
of income and e8ense3 For e8am!e4 a financia! institution ma* amend t"e
descritions to ro.ide information t"at is re!e.ant to t"e oerations of a
financia! institution3 An entit* does not offset income and e8ense items un!ess
t"e criteria in ara&ra" +2 are met3
A2 An entit* sha$$ not present an* ite%s o# inco%e or e,pense as
e,traordinar* ite%s- in the state%ent o# pro#it and $oss or in the notes1
Pro#it or $oss #or the period
AA1 An entit* sha$$ recognise a$$ ite%s o# inco%e and e,pense in a period in
pro#it or $oss un$ess an Ind AS re)uires or per%its other+ise1
89 $ome #nd A$s secif* circumstances w"en an entit* reco&nises articu!ar items
outside rofit or !oss in t"e current eriod3 #nd A$ 8 secifies two suc"
circumstances9 t"e correction of errors and t"e effect of c"an&es in accountin&
o!icies3 ,t"er #nd A$s re-uire or ermit comonents of ot"er comre"ensi.e
income t"at meet t"e ramewor#2s definition of income or e8ense to /e
e8c!uded from rofit or !oss :see ara&ra" 7;3
Other co%prehensi0e inco%e #or the period
9= An entit* sha$$ disc$ose the a%ount o# inco%e ta, re$ating to each
co%ponent o# other co%prehensi0e inco%e- inc$uding rec$assi#ication
ad/ust%ents- either in the state%ent o# pro#it and $oss or in the notes1
20
91 An entit* ma* resent comonents of ot"er comre"ensi.e income eit"er9
:a; net of re!ated ta8 effects4 or
:/; /efore re!ated ta8 effects wit" one amount s"own for t"e a&&re&ate amount
of income ta8 re!atin& to t"ose comonents3
97 An entit* sha$$ disc$ose rec$assi#ication ad/ust%ents re$ating to
co%ponents o# other co%prehensi0e inco%e1
9+ ,t"er #nd A$s secif* w"et"er and w"en amounts re.ious!* reco&nised in
ot"er comre"ensi.e income are rec!assified to rofit or !oss3 $uc"
rec!assifications are referred to in t"is $tandard as rec!assification ad@ustments3
A rec!assification ad@ustment is inc!uded wit" t"e re!ated comonent of ot"er
comre"ensi.e income in t"e eriod t"at t"e ad@ustment is rec!assified to rofit
or !oss3 For e8am!e4 &ains rea!ised on t"e disosa! of a.ai!a/!e-for-sa!e
financia! assets are inc!uded in rofit or !oss of t"e current eriod3 T"ese
amounts ma* "a.e /een reco&nised in ot"er comre"ensi.e income as
unrea!ised &ains in t"e current or re.ious eriods3 T"ose unrea!ised &ains
must /e deducted from ot"er comre"ensi.e income in t"e eriod in w"ic" t"e
rea!ised &ains are rec!assified to rofit or !oss to a.oid inc!udin& t"em in tota!
comre"ensi.e income twice3
94 An entit* ma* resent rec!assification ad@ustments in t"e statement of rofit and
!oss or in t"e notes3 An entit* resentin& rec!assification ad@ustments in t"e
notes resents t"e comonents of ot"er comre"ensi.e income after an*
re!ated rec!assification ad@ustments3
95 >ec!assification ad@ustments arise4 for e8am!e4 on disosa! of a forei&n
oeration :see #nd A$ 21;4 on dereco&nition of a.ai!a/!e-for-sa!e financia!
assets :see #nd A$ +9; and w"en a "ed&ed forecast transaction affects rofit or
!oss :see ara&ra" 100 of #nd A$ +9 in re!ation to cas" f!ow "ed&es;3
96 >ec!assification ad@ustments do not arise on c"an&es in re.a!uation sur!us
reco&nised in accordance wit" #nd A$ 16 or #nd A$ +8 or on actuaria! &ains and
!osses on defined /enefit !ans reco&nised in accordance wit" ara&ra"s 92
and 129A of #nd A$ 193 T"ese comonents are reco&nised in ot"er
comre"ensi.e income and are not rec!assified to rofit or !oss in su/se-uent
eriods3 '"an&es in re.a!uation sur!us ma* /e transferred to retained earnin&s
in su/se-uent eriods as t"e asset is used or w"en it is dereco&nised :see #nd
A$ 16 and #nd A$ +8;3 Actuaria! &ains and !osses are reorted in retained
earnin&s in t"e eriod t"at t"e* are reco&nised as ot"er comre"ensi.e income
:see #nd A$ 19;3
In#or%ation to .e presented in the state%ent o# pro#it and $oss or in
the notes
92 Bhen ite%s o# inco%e or e,pense are %ateria$- an entit* sha$$ disc$ose
their nature and a%ount separate$*1
98 'ircumstances t"at wou!d &i.e rise to t"e searate disc!osure of items of
income and e8ense inc!ude9
:a; write-downs of in.entories to net rea!isa/!e .a!ue or of roert*4 !ant and
e-uiment to reco.era/!e amount4 as we!! as re.ersa!s of suc" write-
downs<
21
:/; restructurin&s of t"e acti.ities of an entit* and re.ersa!s of an* ro.isions
for t"e costs of restructurin&<
:c; disosa!s of items of roert*4 !ant and e-uiment<
:d; disosa!s of in.estments<
:e; discontinued oerations<
:f; !iti&ation sett!ements< and
:&; ot"er re.ersa!s of ro.isions3
99 An entit* sha$$ present an ana$*sis o# e,penses recognised in pro#it or
$oss using a c$assi#ication .ased on the nature o# e,pense %ethod1
100 Dntities are encoura&ed to resent t"e ana!*sis in ara&ra" 99 in t"e
statement of rofit and !oss3
101 D8enses are su/c!assified to "i&"!i&"t comonents of financia! erformance
t"at ma* differ in terms of fre-uenc*4 otentia! for &ain or !oss and
redicta/i!it*3 T"is ana!*sis is ro.ided in t"e form as descri/ed in ara&ra"
1023
102 #n t"e ana!*sis /ased on t"e 6nature of e8ense2 met"od4 an entit* a&&re&ates
e8enses wit"in rofit or !oss accordin& to t"eir nature :for e8am!e4
dereciation4 urc"ases of materia!s4 transort costs4 em!o*ee /enefits and
ad.ertisin& costs;4 and does not rea!!ocate t"em amon& functions wit"in t"e
entit*3 T"is met"od is sim!e to a!* /ecause no a!!ocations of e8enses to
functiona! c!assifications are necessar*3 An e8am!e of a c!assification usin&
t"e nature of e8ense met"od is as fo!!ows9
>e.enue G
,t"er income G
'"an&es in in.entories of finis"ed &oods and wor7
in ro&ress G
>aw materia!s and consuma/!es used G
Dm!o*ee /enefits e8ense G
1ereciation and amortisation e8ense G
,t"er e8enses G
Tota! e8enses :G;
Profit /efore ta8 G
10+ =>efer to Aendi8 1?
104 =>efer to Aendi8 1?3
105 =>efer to Aendi8 1?3
State%ent o# changes in e)uit*
1=; An entit* sha$$ present a state%ent o# changes in e)uit* as a part o#
.a$ance sheet as re)uired .* paragraph 1=1 The state%ent o# changes in
e)uit* inc$udes the #o$$o+ing in#or%ation3
22
(a) tota$ co%prehensi0e inco%e #or the period- sho+ing separate$* the
tota$ a%ounts attri.uta.$e to o+ners o# the parent and to nonD
contro$$ing interests>
(.) #or each co%ponent o# e)uit*- the e##ects o# retrospecti0e app$ication
or retrospecti0e restate%ent recognised in accordance +ith Ind AS A>
(c) ?'e#er to Appendi, 1@
(d) #or each co%ponent o# e)uit*- a reconci$iation .et+een the carr*ing
a%ount at the .eginning and the end o# the period- separate$*
disc$osing each changes resu$ting #ro%3
(i) pro#it or $oss>
(ii) each ite% o# other co%prehensi0e inco%e>
(iii) transactions +ith o+ners in their capacit* as o+ners- sho+ing
separate$* contri.utions .* and distri.utions to o+ners and
changes in o+nership interests in su.sidiaries that do not resu$t
in a $oss o# contro$> and
(i0) an* ite% recognised direct$* in e)uit* such as a%ount
recognised direct$* in e)uit* as capita$ reser0e +ith paragraph
8;A o# Ind AS 1=81
In#or%ation to .e presented in the state%ent o# changes in e)uit*
+hich is a part o# the .a$ance sheet or in the notes
1=;A For each co%ponent o# e)uit* an entit* sha$$ present- either in the
state%ent o# changes in e)uit* or in the notes- an ana$*sis o# other
co%prehensi0e inco%e .* ite% (see paragraph 1=; (d) (ii))1
1=2 An entit* sha$$ present- either in the state%ent o# changes in e)uit* or in
the notes- the a%ount o# di0idends recognised as distri.utions to o+ners
during the period- and the re$ated a%ount o# di0idends per share1
108 #n ara&ra" 1064 t"e comonents of e-uit* inc!ude4 for e8am!e4 eac" c!ass
of contri/uted e-uit*4 t"e accumu!ated /a!ance of eac" c!ass of ot"er
comre"ensi.e income and retained earnin&s3
109 '"an&es in an entit*2s e-uit* /etween t"e /e&innin& and t"e end of t"e
reortin& eriod ref!ect t"e increase or decrease in its net assets durin& t"e
eriod3 D8cet for c"an&es resu!tin& from transactions wit" owners in t"eir
caacit* as owners :suc" as e-uit* contri/utions4 reac-uisitions of t"e entit*2s
own e-uit* instruments and di.idends; and transaction costs direct!* re!ated to
suc" transactions4 t"e o.era!! c"an&e in e-uit* durin& a eriod reresents t"e
tota! amount of income and e8ense4 inc!udin& &ains and !osses4 &enerated /*
t"e entit*2s acti.ities durin& t"at eriod3
110 #nd A$ 8 re-uires retrosecti.e ad@ustments to effect c"an&es in accountin&
o!icies4 to t"e e8tent ractica/!e4 e8cet w"en t"e transition ro.isions in
anot"er #nd A$ re-uire ot"erwise3 #nd A$ 8 a!so re-uires restatements to
correct errors to /e made retrosecti.e!*4 to t"e e8tent ractica/!e3
>etrosecti.e ad@ustments and retrosecti.e restatements are not c"an&es in
23
e-uit* /ut t"e* are ad@ustments to t"e oenin& /a!ance of retained earnin&s4
e8cet w"en an #nd A$ re-uires retrosecti.e ad@ustment of anot"er
comonent of e-uit*3 Para&ra" 106:/; re-uires disc!osure in t"e statement of
c"an&es in e-uit* of t"e tota! ad@ustment to eac" comonent of e-uit* resu!tin&
from c"an&es in accountin& o!icies and4 searate!*4 from corrections of
errors3 T"ese ad@ustments are disc!osed for eac" rior eriod and t"e
/e&innin& of t"e eriod3
State%ent o# cash #$o+s
111 'as" f!ow information ro.ides users of financia! statements wit" a /asis to
assess t"e a/i!it* of t"e entit* to &enerate cas" and cas" e-ui.a!ents and t"e
needs of t"e entit* to uti!ise t"ose cas" f!ows3 #nd A$ 7 sets out re-uirements
for t"e resentation and disc!osure of cas" f!ow information3
otes
Structure
117 The notes sha$$3
(a) present in#or%ation a.out the .asis o# preparation o# the
#inancia$ state%ents and the speci#ic accounting po$icies used in
accordance +ith paragraphs 112F17C>
(.) disc$ose the in#or%ation re)uired .* Ind ASs that is not
presented e$se+here in the #inancia$ state%ents> and
(c) pro0ide in#or%ation that is not presented e$se+here in the
#inancia$ state%ents- .ut is re$e0ant to an understanding o# an*
o# the%1
118 An entit* sha$$ present notes in a s*ste%atic %anner1 An entit* sha$$
crossDre#erence each ite% in the .a$ance sheet- in the state%ent o#
changes in e)uit* +hich is a part o# the .a$ance sheet and in the
state%ent o# pro#it and $oss- and state%ent o# cash #$o+s to an* re$ated
in#or%ation in the notes1
114 An entit* norma!!* resents notes in t"e fo!!owin& order4 to assist users to
understand t"e financia! statements and to comare t"em wit" financia!
statements of ot"er entities9
:a; statement of com!iance wit" #nd A$s :see ara&ra" 16;<
:/; summar* of si&nificant accountin& o!icies a!ied :see ara&ra"
117;<
:c; suortin& information for items resented in t"e /a!ance s"eet4 in
t"e statement of c"an&es in e-uit* w"ic" is a art of t"e /a!ance
s"eet4 in t"e statement of rofit and !oss4 and statement cas" f!ows4 in
t"e order in w"ic" eac" statement and eac" !ine item is resented<
and
:d; ot"er disc!osures4 inc!udin&9
:i; contin&ent !ia/i!ities :see #nd A$ +7; and unreco&nised
contractua! commitments4 and
24
:ii; non-financia! disc!osures4 e& t"e entit*2s financia! ris7
mana&ement o/@ecti.es and o!icies :see #nd A$ 107;3
115 #n some circumstances4 it ma* /e necessar* or desira/!e to .ar* t"e order of
secific items wit"in t"e notes3 For e8am!e4 an entit* ma* com/ine
information on c"an&es in fair .a!ue reco&nised in rofit or !oss wit"
information on maturities of financia! instruments4 a!t"ou&" t"e former
disc!osures re!ate to t"e statement of rofit and !oss and t"e !atter re!ate to t"e
/a!ance s"eet3 He.ert"e!ess4 an entit* retains a s*stematic structure for t"e
notes as far as ractica/!e3
116 An entit* ma* resent notes ro.idin& information a/out t"e /asis of
rearation of t"e financia! statements and secific accountin& o!icies as a
searate section of t"e financia! statements3
Disc$osure o# accounting po$icies
112 An entit* sha$$ disc$ose in the su%%ar* o# signi#icant accounting
po$icies3
(a) the %easure%ent .asis (or .ases) used in preparing the #inancia$
state%ents- and
(.) the other accounting po$icies used that are re$e0ant to an
understanding o# the #inancia$ state%ents1
118 #t is imortant for an entit* to inform users of t"e measurement /asis or /ases
used in t"e financia! statements :for e8am!e4 "istorica! cost4 current cost4 net
rea!isa/!e .a!ue4 fair .a!ue or reco.era/!e amount; /ecause t"e /asis on w"ic"
an entit* reares t"e financia! statements si&nificant!* affects users2 ana!*sis3
A"en an entit* uses more t"an one measurement /asis in t"e financia!
statements4 for e8am!e w"en articu!ar c!asses of assets are re.a!ued4 it is
sufficient to ro.ide an indication of t"e cate&ories of assets and !ia/i!ities to
w"ic" eac" measurement /asis is a!ied3
119 #n decidin& w"et"er a articu!ar accountin& o!ic* s"ou!d /e disc!osed4
mana&ement considers w"et"er disc!osure wou!d assist users in
understandin& "ow transactions4 ot"er e.ents and conditions are ref!ected in
reorted financia! erformance and financia! osition3 1isc!osure of articu!ar
accountin& o!icies is esecia!!* usefu! to users w"en t"ose o!icies are
se!ected from a!ternati.es a!!owed in #nd A$s3 An e8am!e is disc!osure of
w"et"er a .enturer reco&nises its interest in a @oint!* contro!!ed entit* usin&
roortionate conso!idation or t"e e-uit* met"od :see #nd A$ +1 Interests in
,oint -entures;3 $ome #nd A$s secifica!!* re-uire disc!osure of articu!ar
accountin& o!icies4 inc!udin& c"oices made /* mana&ement /etween different
o!icies t"e* a!!ow3 For e8am!e4 #nd A$ 16 re-uires disc!osure of t"e
measurement /ases used for c!asses of roert*4 !ant and e-uiment3
120 Dac" entit* considers t"e nature of its oerations and t"e o!icies t"at t"e
users of its financia! statements wou!d e8ect to /e disc!osed for t"at t*e of
entit*3 For e8am!e4 users wou!d e8ect an entit* su/@ect to income ta8es to
disc!ose its accountin& o!icies for income ta8es4 inc!udin& t"ose a!ica/!e to
deferred ta8 !ia/i!ities and assets3 A"en an entit* "as si&nificant forei&n
oerations or transactions in forei&n currencies4 users wou!d e8ect disc!osure
25
of accountin& o!icies for t"e reco&nition of forei&n e8c"an&e &ains and
!osses3
121 An accountin& o!ic* ma* /e si&nificant /ecause of t"e nature of t"e entit*2s
oerations e.en if amounts for current and rior eriods are not materia!3 #t is
a!so aroriate to disc!ose eac" si&nificant accountin& o!ic* t"at is not
secifica!!* re-uired /* #nd A$s /ut t"e entit* se!ects and a!ies in
accordance wit" #nd A$ 83
177 An entit* sha$$ disc$ose- in the su%%ar* o# signi#icant accounting
po$icies or other notes- the /udge%ents- apart #ro% those in0o$0ing
esti%ations (see paragraph 17:)- that %anage%ent has %ade in the
process o# app$*ing the entit*5s accounting po$icies and that ha0e the
%ost signi#icant e##ect on the a%ounts recognised in the #inancia$
state%ents1
12+ #n t"e rocess of a!*in& t"e entit*2s accountin& o!icies4 mana&ement ma7es
.arious @ud&ements4 aart from t"ose in.o!.in& estimations4 t"at can
si&nificant!* affect t"e amounts it reco&nises in t"e financia! statements3 For
e8am!e4 mana&ement ma7es @ud&ements in determinin&9
:a; w"et"er financia! assets are "e!d-to-maturit* in.estments<
:/; w"en su/stantia!!* a!! t"e si&nificant ris7s and rewards of owners"i of
financia! assets and !ease assets are transferred to ot"er entities<
:c; w"et"er4 in su/stance4 articu!ar sa!es of &oods are financin&
arran&ements and t"erefore do not &i.e rise to re.enue< and
:d; w"et"er t"e su/stance of t"e re!ations"i /etween t"e entit* and a
secia! urose entit* indicates t"at t"e entit* contro!s t"e secia!
urose entit*3
124 $ome of t"e disc!osures made in accordance wit" ara&ra" 122 are re-uired
/* ot"er #nd A$s3 For e8am!e4 #nd A$ 27 re-uires an entit* to disc!ose t"e
reasons w"* t"e entit*2s owners"i interest does not constitute contro!4 in
resect of an in.estee t"at is not a su/sidiar* e.en t"ou&" more t"an "a!f of its
.otin& or otentia! .otin& ower is owned direct!* or indirect!* t"rou&"
su/sidiaries3 #nd A$ 40 Investment Property re-uires disc!osure of t"e criteria
de.e!oed /* t"e entit* to distin&uis" in.estment roert* from owner-
occuied roert* and from roert* "e!d for sa!e in t"e ordinar* course of
/usiness4 w"en c!assification of t"e roert* is difficu!t3
Sources o# esti%ation uncertaint*
17: An entit* sha$$ disc$ose in#or%ation a.out the assu%ptions it %a6es
a.out the #uture- and other %a/or sources o# esti%ation uncertaint* at
the end o# the reporting period- that ha0e a signi#icant ris6 o# resu$ting in
a %ateria$ ad/ust%ent to the carr*ing a%ounts o# assets and $ia.i$ities
+ithin the ne,t #inancia$ *ear1 In respect o# those assets and $ia.i$ities-
the notes sha$$ inc$ude detai$s o#3
(a) their nature- and
(.) their carr*ing a%ount as at the end o# the reporting period1
26
126 1eterminin& t"e carr*in& amounts of some assets and !ia/i!ities re-uires
estimation of t"e effects of uncertain future e.ents on t"ose assets and !ia/i!ities at
t"e end of t"e reortin& eriod3 For e8am!e4 in t"e a/sence of recent!* o/ser.ed
mar7et rices4 future-oriented estimates are necessar* to measure t"e reco.era/!e
amount of c!asses of roert*4 !ant and e-uiment4 t"e effect of tec"no!o&ica!
o/so!escence on in.entories4 ro.isions su/@ect to t"e future outcome of !iti&ation in
ro&ress4 and !on&-term em!o*ee /enefit !ia/i!ities suc" as ension o/!i&ations3
T"ese estimates in.o!.e assumtions a/out suc" items as t"e ris7 ad@ustment to
cas" f!ows or discount rates4 future c"an&es in sa!aries and future c"an&es in rices
affectin& ot"er costs3
127 T"e assumtions and ot"er sources of estimation uncertaint* disc!osed in
accordance wit" ara&ra" 125 re!ate to t"e estimates t"at re-uire mana&ement2s
most difficu!t4 su/@ecti.e or com!e8 @ud&ements3 As t"e num/er of .aria/!es and
assumtions affectin& t"e ossi/!e future reso!ution of t"e uncertainties increases4
t"ose @ud&ements /ecome more su/@ecti.e and com!e84 and t"e otentia! for a
conse-uentia! materia! ad@ustment to t"e carr*in& amounts of assets and !ia/i!ities
norma!!* increases accordin&!*3
128 T"e disc!osures in ara&ra" 125 are not re-uired for assets and !ia/i!ities
wit" a si&nificant ris7 t"at t"eir carr*in& amounts mi&"t c"an&e materia!!*
wit"in t"e ne8t financia! *ear if4 at t"e end of t"e reortin& eriod4 t"e* are
measured at fair .a!ue /ased on recent!* o/ser.ed mar7et rices3 $uc" fair
.a!ues mi&"t c"an&e materia!!* wit"in t"e ne8t financia! *ear /ut t"ese
c"an&es wou!d not arise from assumtions or ot"er sources of estimation
uncertaint* at t"e end of t"e reortin& eriod3
129 An entit* resents t"e disc!osures in ara&ra" 125 in a manner t"at "e!s
users of financia! statements to understand t"e @ud&ements t"at mana&ement
ma7es a/out t"e future and a/out ot"er sources of estimation uncertaint*3
T"e nature and e8tent of t"e information ro.ided .ar* accordin& to t"e
nature of t"e assumtion and ot"er circumstances3 D8am!es of t"e t*es of
disc!osures an entit* ma7es are9
:a; t"e nature of t"e assumtion or ot"er estimation uncertaint*<
:/; t"e sensiti.it* of carr*in& amounts to t"e met"ods4 assumtions and
estimates under!*in& t"eir ca!cu!ation4 inc!udin& t"e reasons for t"e
sensiti.it*<
:c; t"e e8ected reso!ution of an uncertaint* and t"e ran&e of reasona/!*
ossi/!e outcomes wit"in t"e ne8t financia! *ear in resect of t"e
carr*in& amounts of t"e assets and !ia/i!ities affected< and
:d; an e8!anation of c"an&es made to ast assumtions concernin&
t"ose assets and !ia/i!ities4 if t"e uncertaint* remains unreso!.ed3
1+0 T"is $tandard does not re-uire an entit* to disc!ose /ud&et information or
forecasts in ma7in& t"e disc!osures in ara&ra" 1253
1+1 $ometimes it is imractica/!e to disc!ose t"e e8tent of t"e ossi/!e effects of
an assumtion or anot"er source of estimation uncertaint* at t"e end of t"e
reortin& eriod3 #n suc" cases4 t"e entit* disc!oses t"at it is reasona/!*
ossi/!e4 on t"e /asis of e8istin& 7now!ed&e4 t"at outcomes wit"in t"e ne8t
financia! *ear t"at are different from t"e assumtion cou!d re-uire a materia!
ad@ustment to t"e carr*in& amount of t"e asset or !ia/i!it* affected3 #n a!! cases4
27
t"e entit* disc!oses t"e nature and carr*in& amount of t"e secific asset or
!ia/i!it* :or c!ass of assets or !ia/i!ities; affected /* t"e assumtion3
1+2 T"e disc!osures in ara&ra" 122 of articu!ar @ud&ements t"at mana&ement
made in t"e rocess of a!*in& t"e entit*2s accountin& o!icies do not re!ate to
t"e disc!osures of sources of estimation uncertaint* in ara&ra" 1253
1++ ,t"er #nd A$s re-uire t"e disc!osure of some of t"e assumtions t"at wou!d
ot"erwise /e re-uired in accordance wit" ara&ra" 1253 For e8am!e4 #nd A$
+7 re-uires disc!osure4 in secified circumstances4 of ma@or assumtions
concernin& future e.ents affectin& c!asses of ro.isions3 #nd A$ 107re-uires
disc!osure of si&nificant assumtions t"e entit* uses in estimatin& t"e fair
.a!ues of financia! assets and financia! !ia/i!ities t"at are carried at fair .a!ue3
#nd A$ 16 re-uires disc!osure of si&nificant assumtions t"at t"e entit* uses in
estimatin& t"e fair .a!ues of re.a!ued items of roert*4 !ant and e-uiment3
Capita$
18C An entit* sha$$ disc$ose in#or%ation that ena.$es users o# its #inancia$
state%ents to e0a$uate the entit*5s o./ecti0es- po$icies and processes #or
%anaging capita$1
1+5 To com!* wit" ara&ra" 1+44 t"e entit* disc!oses t"e fo!!owin&9
:a; -ua!itati.e information a/out its o/@ecti.es4 o!icies and rocesses for
mana&in& caita!4 inc!udin&9
:i; a descrition of w"at it mana&es as caita!<
:ii; w"en an entit* is su/@ect to e8terna!!* imosed caita!
re-uirements4 t"e nature of t"ose re-uirements and "ow t"ose
re-uirements are incororated into t"e mana&ement of caita!<
and
:iii; "ow it is meetin& its o/@ecti.es for mana&in& caita!3
:/; summar* -uantitati.e data a/out w"at it mana&es as caita!3 $ome
entities re&ard some financia! !ia/i!ities :e& some forms of
su/ordinated de/t; as art of caita!3 ,t"er entities re&ard caita! as
e8c!udin& some comonents of e-uit* :e& comonents arisin& from
cas" f!ow "ed&es;3
:c; an* c"an&es in :a; and :/; from t"e re.ious eriod3
:d; w"et"er durin& t"e eriod it com!ied wit" an* e8terna!!* imosed
caita! re-uirements to w"ic" it is su/@ect3
:e; w"en t"e entit* "as not com!ied wit" suc" e8terna!!* imosed caita!
re-uirements4 t"e conse-uences of suc" non-com!iance3
T"e entit* /ases t"ese disc!osures on t"e information ro.ided interna!!* to 7e*
mana&ement ersonne!3
1+6 An entit* ma* mana&e caita! in a num/er of wa*s and /e su/@ect to a num/er
of different caita! re-uirements3 For e8am!e4 a con&!omerate ma* inc!ude
entities t"at underta7e insurance acti.ities and /an7in& acti.ities and t"ose
entities ma* oerate in se.era! @urisdictions3 A"en an a&&re&ate disc!osure of
caita! re-uirements and "ow caita! is mana&ed wou!d not ro.ide usefu!
28
information or distorts a financia! statement user2s understandin& of an entit*2s
caita! resources4 t"e entit* s"a!! disc!ose searate information for eac" caita!
re-uirement to w"ic" t"e entit* is su/@ect3
Putta.$e #inancia$ instru%ents c$assi#ied as e)uit*
18;A For putta.$e #inancia$ instru%ents c$assi#ied as e)uit* instru%ents- an
entit* sha$$ disc$ose (to the e,tent not disc$osed e$se+here)3
(a) su%%ar* )uantitati0e data a.out the a%ount c$assi#ied as e)uit*>
(.) its o./ecti0es- po$icies and processes #or %anaging its o.$igation
to repurchase or redee% the instru%ents +hen re)uired to do so
.* the instru%ent ho$ders- inc$uding an* changes #ro% the
pre0ious period>
(c) the e,pected cash out#$o+ on rede%ption or repurchase o# that
c$ass o# #inancia$ instru%ents> and
(d) in#or%ation a.out ho+ the e,pected cash out#$o+ on rede%ption
or repurchase +as deter%ined1
Other disc$osures
182 An entit* sha$$ disc$ose in the notes3
(a) the a%ount o# di0idends proposed or dec$ared .e#ore the
#inancia$ state%ents +ere appro0ed #or issue .ut not recognised
as a distri.ution to o+ners during the period- and the re$ated
a%ount per share> and
(.) the a%ount o# an* cu%u$ati0e pre#erence di0idends not
recognised1
18A An entit* sha$$ disc$ose the #o$$o+ing- i# not disc$osed e$se+here in
in#or%ation pu.$ished +ith the #inancia$ state%ents3
(a) the do%ici$e and $ega$ #or% o# the entit*- its countr* o#
incorporation and the address o# its registered o##ice (or principa$
p$ace o# .usiness- i# di##erent #ro% the registered o##ice)>
(.) a description o# the nature o# the entit*5s operations and its
principa$ acti0ities>
(c) the na%e o# the parent and the u$ti%ate parent o# the group> and
(d) i# it is a $i%ited $i#e entit*- in#or%ation regarding the $ength o# its
$i#e1
29
30
Appendi, A
'e#erences to %atters contained in other Indian
Accounting Standards
This Appendi' is an integral part o$ Indian Accounting Standard (Ind AS) .3
T"is aendi8 !ists t"e different aendices w"ic" are t"e art of ot"er #ndian
Accountin& $tandards and ma7e reference to #nd A$ 19
1. Aendi8 A +istributions o$ /on0cash Assets to 1wners
contained in Ind AS .2 %vents a$ter the !eporting Period


2. Aendi8 A "hanges in %'isting +ecommissioning,
!estoration and Similar *iabilities contained in #nd A$ 164 Property, Plant and
%quipment
3. Aendi8 A IAS .34The *imit on a +e$ined &ene$it Asset,
)inimum unding !equirements and their Interaction contained in #nd A$ 19
%mployee &ene$its
4. Aendi8 A Intangible Assets45eb Site "osts contained in
#nd A$ +84 Intangible Assets
5. Aendi8 D %'tinguishing inancial *iabilities with %quity
Instruments contained in Ind AS 63 inancial Instruments( !ecognition and
)easurement.
31
Appendi, 1
/ote( This Appendi' is not a part o$ the Indian Accounting Standard. The purpose
o$ this Appendi' is only to bring out the di$$erences, i$ any, between Indian
Accounting Standard (Ind AS) . and the corresponding International Accounting
Standard (IAS) ., Presentation o$ inancial Statements.
Co%parison +ith IAS 1- Presentation of Financial Statements
1 Ait" re&ard to rearation of $tatement of rofit and !oss4 #nternationa!
Accountin& $tandard :#A$; 14 Presentation o$ inancial Statements4 ro.ides
an otion eit"er to fo!!ow t"e sin&!e statement aroac" or to fo!!ow t"e two
statement aroac"3 A"i!e in t"e sin&!e statement aroac"4 a!! items of
income and e8ense are reco&nised in t"e statement of rofit and !oss4 in t"e
two statements aroac"4 two statements are reared4 one dis!a*in&
comonents of rofit or !oss :searate income statement; and t"e ot"er
/e&innin& wit" rofit or !oss and dis!a*in& comonents of ot"er
comre"ensi.e income3 #nd A$ 1 a!!ows on!* t"e sin&!e statement aroac"3
Para&ra" 84 of #A$ 1 is wit" reference to t"e two statement aroac"3 As #nd
A$ 1 does not a!!ow t"e aforesaid otion4 t"e ara&ra" 84 is de!eted3
5owe.er4 ara&ra" num/er 84 "as /een retained in #nd A$ 1 to maintain
consistenc* wit" ara&ra" num/ers of #A$ 13
2 #A$ 1 re-uires rearation of a $tatement of '"an&es in D-uit* as a searate
statement3 #nd A$ 1 re-uires t"e statement of c"an&es in e-uit* to /e s"own
as a art of t"e /a!ance s"eet3 Para&ra" 10:c; of #A$ 1 is wit" reference to
t"e searate statement of c"an&es in e-uit*3 3 As #nd A$ 1 does not re-uire it4
t"e same is de!eted3 5owe.er4 ara&ra" num/er 10:c; "as /een retained in
#nd A$ 1 to maintain consistenc* wit" ara&ra" num/ers of #A$ 1
3 1ifferent termino!o&* is used in #nd A$ 1 e3&34 t"e term 4/a!ance s"eet2 is used
instead of 6$tatement of financia! osition2 and 6$tatement of Profit and Ioss2 is
used instead of 6$tatement of comre"ensi.e income23 T"e words 6aro.a! of
t"e financia! statements for issue2 "a.e /een used instead of 6aut"orisation of
t"e financia! statements for issue2 in t"e conte8t of financia! statements
considered for t"e urose of e.ents after t"e reortin& eriod3
4 Para&ra" 8 of #A$ 1 &i.es t"e otion to indi.idua! entities to fo!!ow different
termino!o&* for t"e tit!es of financia! statements3 #nd A$ 1 is c"an&ed to
remo.e a!ternati.es /* &i.in& one termino!o&* to /e used /* a!! entities3
5owe.er4 ara&ra" num/er 8 "as /een retained in #nd A$ 1 to maintain
consistenc* wit" ara&ra" num/ers of #A$ 13
5 Para&ra" +7 of #A$ 1 ermits t"e eriodicit*4 for e8am!e4 of 52 wee7s for
rearation of financia! statements3 As #nd A$ 1 does not ermit it4t"e same is
de!eted3 5owe.er4 ara&ra" num/er +7 "as /een retained in #nd A$ 1 to
maintain consistenc* wit" ara&ra" num/ers of #A$ 13

6 Para&ra" 99 of #A$ 1 re-uires an entit* to resent an ana!*sis of e8enses
reco&nised in rofit or !oss usin& a c!assification /ased on eit"er t"eir nature or
t"eir function wit"in t"e e-uit*3 #nd A$ 1 re-uires on!* nature-wise c!assification
of e8enses3 #n #A$ 1 t"e fo!!owin& ara&ra"s are wit" reference to function-
wise c!assification of e8ense3 #n order to maintain consistenc* wit" ara&ra"
num/ers of #A$ 14 t"e ara&ra" num/ers are retained in #nd A$ 1 9
:i; Para&ra" 10+
:ii; Para&ra" 104
:iii; Para&ra" 105

7 #A$ 1 contains #m!ementation %uidance3 #nd A$ 1 does not inc!ude t"e same
/ecause .arious enactments "a.e rescri/ed formats4 e3&34 $c"edu!e V# to t"e
'omanies Act4 19563
8 Para&ra" num/er 106:c; aears as 61e!eted 6in #A$ 13 #n order to maintain
consistenc* wit" ara&ra" num/ers of #A$ 14 t"e ara&ra" num/er is
retained in #nd A$ 13
9 'ross-reference to ara&ra" 9+A of of #A$ 19 "as /een modified as cross
reference to ara&ra"s 92 and 129A of #nd A$ 19 as a resu!t of certain
c"an&es in #nd A$19 as comared to #A$ 193
33