Indian Accounting Standard (Ind AS) 1 Presentation of Financial Statements

Contents
OBJECTIVE SCOPE DEFI ITIO S FI A CIA! STATE"E TS Purpose o# #inancia$ state%ents Co%p$ete set o# #inancia$ state%ents &enera$ #eatures Presentation of True and Fair View and com !iance wit" #nd A$s %oin& 'oncern Accrua! (asis of Accountin& )ateria!it* and A&&re&ation ,ffsettin& Fre-uenc* of re ortin& 'om arati.e #nformation 'onsistenc* of Presentation ST'(CT('E A D CO TE T Introduction Identi#ication o# the #inancia$ state%ents Ba$ance Sheet #nformation to /e resented in t"e /a!ance s"eet 'urrent0non-current distinction 'urrent assets 'urrent !ia/i!ities #nformation to /e resented eit"er in /a!ance s"eet or in t"e notes State%ent o# pro#it and $oss #nformation to /e rofit and !oss resented in t"e statement of

Paragraphs
1 26 7-8A 9-46 9 10-14 15-46 15-24 25-26 27-28 29-+1 +2-+5 +6-+7 +8-44 45-46 47-1+8 47-48 49-5+ 54-80A 54-59 60-65 66-68 69-76 77-80A 81-105 82-87

Profit or !oss for t"e eriod ,t"er com re"ensi.e income for t"e eriod #nformation to /e resented in t"e statement of rofit and !oss or in t"e notes State%ent o# changes in e)uit* State%ent o# cash #$o+s otes $tructure 1isc!osure of accountin& o!icies $ources of estimation uncertaint* 'a ita! Putta/!e financia! instruments c!assified as e-uit* ,t"er disc!osures APPE DICES

88-89 90-96 97-105 106-110 111 112-1+8 112-116 117-124 125-1++ 1+4-1+6 1+6A 1+7-1+8

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

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! ur ose financia! statements to ensure com ara/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 ,t"er #nd A$s set out t"e reco&nition4 measurement and disc!osure re-uirements for s ecific transactions and ot"er e.ents3 T"is $tandard does not a !* to t"e structure and content of condensed interim financia! statements re ared in accordance wit" #nd A$ +4 Interim inancial !eporting3 5owe.er4 ara&ra "s 15+5 a !* to suc" financia! statements3 T"is $tandard a !ies e-ua!!* to a!! entities4 inc!udin& t"ose t"at resent conso!idated financia! statements and t"ose t"at resent se arate financia! statements as defined in #nd A$ 27 "onsolidated and Separate inancial Statements3 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 descri tions used for articu!ar !ine items in t"e financia! statements and for t"e financia! statements t"emse!.es3 $imi!ar!*4 entities w"ose s"are ca ita! is not e-uit* ma* need to ada t t"e financia! statement resentation of mem/ers2 interests3

3 4

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

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$dindi0idua$$* or co$$ecti0e$*- in#$uence the econo%ic decisions that users %a6e on the .asis o# the #inancia$ state%ents1 "ateria$it* depends on the si<e and nature o# the o%ission or %isstate%ent /udged in the surrounding circu%stances1 The si<e or nature o# the ite%- or a co%.ination o# .othcou$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 e8 ected 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 $oss as re)uired or per%itted .* other Ind ASs1 T"e com onents of ot"er com re"ensi.e income inc!ude9 :a; c"an&es in re.a!uation sur !us :see #nd A$ 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$its< :c; &ains and !osses arisin& from trans!atin& t"e financia! statements of a forei&n o eration :see #nd A$ 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 O ners 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

!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! com re"ensi.e income com rises a!! com onents of 6 rofit or !oss2 and of 6ot"er com re"ensi.e income23

=>efer to A

endi8 1;?

8A3 T"e fo!!owin& terms are descri/ed in #nd A$ +2 inancial Instruments( Presentation and are used in t"is $tandard wit" t"e meanin& s ecified in #nd A$ +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 im oses 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 re resentation 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; :c; :d; :e; :f; assets< e-uit*< income and e8 enses4 inc!udin& &ains and !osses< contri/utions /* and distri/utions to owners in t"eir ca acit* as owners< and cas" f!ows3 :/; !ia/i!ities<

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

Co%p$ete set o# #inancia$ state%ents

1= A co%p$ete set o# #inancia$ state%ents co%prises3 (a) (.) (c) (d) (e) (#) 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 $oss #or the period> ?'e#er to Appendi, 1 @> a state%ent o# cash #$o+s #or the period> 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 12

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 As er ara&ra " 814 an entit* s"a!! resent t"e com onents of rofit or !oss and com onents of ot"er com re"ensi.e income as art of a sin&!e statement of rofit and !oss3 )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 rinci a! uncertainties it faces3 $uc" a re ort ma* inc!ude a re.iew of9 :a; t"e main factors and inf!uences determinin& financia! erformance4 inc!udin& c"an&es in t"e en.ironment in w"ic" t"e entit* o erates4 t"e entit*2s res onse to t"ose c"an&es and t"eir effect4 and t"e entit*2s o!ic* for in.estment to maintain and en"ance financia! erformance4 inc!udin& its di.idend o!ic*< t"e entit*2s sources of fundin& and its tar&eted ratio of !ia/i!ities to e-uit*< and t"e entit*2s resources not reco&nised in t"e /a!ance s"eet in accordance wit" #nd A$s3

1+

:/; :c;

14

)an* entities a!so resent4 outside t"e financia! statements4 re orts and statements suc" as en.ironmenta! re orts 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 im ortant user &rou 3 >e orts and statements resented outside financia! statements are outside t"e sco e of #nd A$s3

&enera$ #eatures
Presentation o# True and Fair Vie+ and co%p$iance +ith Ind ASs

1:

Financia$ state%ents sha$$ present a true and #air 0ie+ o# the #inancia$ position- #inancia$ per#or%ance and cash #$o+s o# an entit*1 Presentation o# true and #air 0ie+ re)uires the #aith#u$ representation o# the e##ects o# transactions- other e0ents and conditions in accordance +ith the de#initions and recognition criteria #or assets- $ia.i$ities- inco%e and e,penses set out in the Frame or$1 The app$ication o# Ind ASs- +ith additiona$ disc$osure +hen necessar*- is presu%ed to resu$t in #inancia$ state%ents that present a true and #air 0ie+1 An entit* +hose #inancia$ state%ents co%p$* +ith Ind ASs sha$$ %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

1;

17 #n .irtua!!* a!! circumstances4 resentation of a true and fair .iew is ac"ie.ed /*

com !iance wit" a re-uires an entit*9 :a; !ica/!e #nd A$s3 Presentation of a true and fair .iew a!so

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 s ecifica!!* 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 com ara/!e and understanda/!e information3 :c; to ro.ide additiona! disc!osures w"en com !iance wit" t"e s ecific re-uirements in #nd A$s is insufficient to ena/!e users to understand t"e im act 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$1 In the e,tre%e$* 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 Frame or$- the entit* sha$$ depart #ro% that re)uire%ent in the %anner set out in paragraph 7= i# the re$e0ant regu$ator* #ra%e+or6 re)uires- or other+ise does not prohi.it- such a departure1 Bhen an entit* departs #ro% a re)uire%ent o# an Ind AS in accordance +ith paragraph 19- it sha$$ 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

19

7=

circu%stances that it +ou$d con#$ict +ith the o./ecti0e o# #inancia$ state%ents set out in the Frame or$- and the treat%ent adopted> and (d) #or each period presented- the #inancia$ 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$$ %a6e the disc$osures set out in paragraph 7=(c) and (d)1 Para&ra " 21 a !ies4 for e8am !e4 w"en an entit* de arted in a rior eriod from a re-uirement in an #nd A$ for t"e measurement of assets or !ia/i!ities and t"at de arture affects t"e measurement of c"an&es in assets and !ia/i!ities reco&nised in t"e current eriod2s financia! statements3 In the e,tre%e$* rare circu%stances in +hich %anage%ent conc$udes that co%p$iance +ith a re)uire%ent in an Ind AS +ou$d .e so %is$eading that it +ou$d con#$ict +ith the o./ecti0e o# #inancia$ state%ents set out in the Frame or$- .ut the re$e0ant regu$ator* #ra%e+or6 prohi.its departure #ro% the re)uire%ent- the entit* sha$$- to the %a,i%u% e,tent possi.$ereduce the percei0ed %is$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 Frame or$> and #or each period presented- the ad/ust%ents to each ite% in the #inancia$ state%ents that %anage%ent has conc$uded +ou$d .e necessar* to present a true and #air 0ie+1

22

78

(.)

24

For t"e ur ose 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 re resent fait"fu!!* t"e transactions4 ot"er e.ents and conditions t"at it eit"er ur orts to re resent or cou!d reasona/!* /e e8 ected to re resent 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 s ecific 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 resum tion 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

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 #n assessin& w"et"er t"e &oin& concern assum tion is a ro riate4 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 re ortin& eriod3 T"e de&ree of consideration de ends on t"e facts in eac" case3 A"en an entit* "as a "istor* of rofita/!e o erations and read* access to financia! resources4 t"e entit* ma* reac" a conc!usion t"at t"e &oin& concern /asis of accountin& is a ro riate 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 e8 ected rofita/i!it*4 de/t re a*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 a ro riate3

26

Accrua$ .asis o# accounting

72 28 An entit* sha$$ prepare its #inancia$ state%ents- e,cept #or cash #$o+ in#or%ation- using the accrua$ .asis o# accounting1 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 e8 enses :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 .* $a+1 Financia! statements resu!t from rocessin& !ar&e num/ers of transactions or ot"er e.ents t"at are a&&re&ated into c!asses accordin& to t"eir nature or function3 T"e fina! sta&e in t"e rocess of a&&re&ation and c!assification is t"e resentation of condensed and c!assified data4 w"ic" form !ine items in t"e financia! statements3 #f a !ine item is not indi.idua!!* materia!4 it is a&&re&ated wit" ot"er items eit"er in t"ose statements or in t"e notes3 An item t"at is not sufficient!* materia! to warrant se arate resentation in t"ose statements ma* warrant se arate resentation in t"e notes3 An entit* need not ro.ide a s ecific disc!osure re-uired /* an #nd A$ if t"e information is not materia! e8ce t w"en re-uired /* !aw3

+0

+1

O##setting

87 ++

An entit* sha$$ not o##set assets and $ia.i$ities or inco%e and e,pensesun$ess re)uired or per%itted .* an Ind AS1 An entit* re orts se arate!* /ot" assets and !ia/i!ities4 and income and e8 enses3 ,ffsettin& in t"e statements of rofit and !oss or /a!ance s"eet4 e8ce t w"en offsettin& ref!ects t"e su/stance of t"e transaction or ot"er e.ent4 detracts from t"e a/i!it* of users /ot" to understand t"e transactions4 ot"er e.ents and conditions t"at "a.e occurred and to assess t"e entit*2s future cas" f!ows3 )easurin& assets net of .a!uation a!!owancesBfor e8am !e4 o/so!escence a!!owances on in.entories and dou/tfu! de/ts a!!owances on recei.a/!esBis not offsettin&3 #nd A$ 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 e8 enses arisin& on t"e same transaction3 For e8am !e9 :a; an entit* resents &ains and !osses on t"e dis osa! of non-current assets4 inc!udin& in.estments and o eratin& assets4 /* deductin& from t"e roceeds on dis osa! t"e carr*in& amount of t"e asset and re!ated se!!in& e8 enses< and an entit* ma* net e8 enditure 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

+4

:/;

+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 se arate!* 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 endi8 1?

+7

=>efer to A

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 An entit* disc!osin& com arati.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* retros ecti.e!* or ma7es a retros ecti.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; :/; :c; 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 t"e /e&innin& of t"e ear!iest com arati.e eriod3

+9

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! dis ute w"ose outcome was uncertain at t"e end of t"e immediate!* recedin& re ortin& 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& re ortin& eriod4 and a/out t"e ste s t"at "a.e /een ta7en durin& t"e eriod to reso!.e t"e uncertaint*3 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$ose3 (a) (.) (c) the nature o# the rec$assi#ication> the a%ount o# each ite% or c$ass o# ite%s that is rec$assi#ied> and the reason #or the rec$assi#ication1

C1

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 com ara/i!it* of information assists users in ma7in& economic decisions4 es ecia!!* /* a!!owin& t"e assessment of trends in financia! information for redicti.e ur oses3 #n some circumstances4 it is im ractica/!e to rec!assif* com arati.e information for a articu!ar rior eriod to ac"ie.e com ara/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 im ractica/!e to recreate t"e information3 44 #nd A$ 8 sets out t"e ad@ustments to com arati.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 dis osa!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 com ara/i!it* is not im aired3 A"en ma7in& suc" c"an&es in resentation4 an entit* rec!assifies its com arati.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 T"is $tandard sometimes uses t"e term 6disc!osure2 in a /road sense4 encom assin& items resented in t"e financia! statements3 1isc!osures are a!so re-uired /* ot"er #nd A$s3 Cn!ess s ecified 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

48

Identi#ication o# the #inancia$ state%ents

C9 50 An entit* sha$$ c$ear$* identi#* the #inancia$ state%ents and distinguish the% #ro% other in#or%ation in the sa%e pu.$ished docu%ent1 #nd A$s a !* on!* to financia! statements4 and not necessari!* to ot"er information resented in an annua! re ort4 a re&u!ator* fi!in&4 or anot"er document3 T"erefore4 it is im ortant t"at users can distin&uis" information t"at

12

is re ared 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& a ro riate "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 se arate 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 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 acce ta/!e as !on& as t"e entit* disc!oses t"e !e.e! of roundin& and does not omit materia! information3

5+

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) (.) (c) (d) (e) (#) (g) (h) propert*- p$ant and e)uip%ent> in0est%ent propert*> intangi.$e assets> #inancia$ assets (e,c$uding a%ounts sho+n under (e)- (h) and (i))> in0est%ents accounted #or using the e)uit* %ethod> .io$ogica$ assets> in0entories> 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$e in accordance +ith Ind AS 1=: Non%current Assets &eld for Sale and 'iscontinued Operations> trade and other pa*a.$es> pro0isions> #inancia$ $ia.i$ities (e,c$uding a%ounts sho+n under (6) and ($))> $ia.i$ities and assets #or current ta,- as de#ined in Ind AS 17 Income #a(es> de#erred ta, $ia.i$ities and de#erred ta, assets- as de#ined in Ind AS 17> $ia.i$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 issued capita$ and reser0es attri.uta.$e to o+ners o# the parent1

(6) ($) (%) (n) (o) (p) ()) (r)

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 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 se arate 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 se arate resentation is re!e.ant to an understandin& of t"e entit*2s financia! osition< and :/; t"e descri tions 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 descri tions to ro.ide information t"at is re!e.ant to t"e o erations of a financia! institution3

:;

57

58

An entit* ma7es t"e @ud&ement a/out w"et"er to se arate!* 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

resent additiona! items

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 se arate !ine items3 For e8am !e4 different c!asses of ro ert*4 !ant and e-ui ment 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$$ assets and $ia.i$ities in order o# $i)uidit*1 Bhiche0er %ethod o# presentation is adopted- an entit* sha$$ 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) (.) 62 no %ore than t+e$0e %onths a#ter the reporting period- and %ore than t+e$0e %onths a#ter the reporting period1

;1

A"en an entit* su !ies &oods or ser.ices wit"in a c!ear!* identifia/!e o eratin& c*c!e4 se arate 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& ca ita! from t"ose used in t"e entit*2s !on&-term o erations3 #t a!so "i&"!i&"ts assets t"at are e8 ected to /e rea!ised wit"in t"e current o eratin& c*c!e4 and !ia/i!ities t"at are due for sett!ement wit"in t"e same eriod3 For some entities4 suc" as financia! !ia/i!ities in increasin& or decreasin& is re!ia/!e and more re!e.ant t"an a t"e entit* does not su !* &oods o eratin& c*c!e3 institutions4 a resentation of assets and order of !i-uidit* ro.ides information t"at current0non-current resentation /ecause or ser.ices wit"in a c!ear!* identifia/!e

6+

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 o erations3 #nformation a/out e8 ected 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 e8 ected date of reco.er* of non-monetar* assets suc" as in.entories and e8 ected 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 noncurrent3 For e8am !e4 an entit* disc!oses t"e amount of in.entories t"at are e8 ected to /e reco.ered more t"an twe!.e mont"s after t"e re ortin& eriod3

65

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 $tandard uses t"e term 6non-current2 to inc!ude tan&i/!e4 intan&i/!e and financia! assets of a !on&-term nature3 #t does not ro"i/it t"e use of a!ternati.e descri tions as !on& as t"e meanin& is c!ear3 T"e o eratin& c*c!e of an entit* is t"e time /etween t"e ac-uisition of assets for rocessin& and t"eir rea!isation in cas" or cas" e-ui.a!ents3 A"en t"e entit*2s norma! o eratin& c*c!e is not c!ear!* identifia/!e4 it is assumed to /e twe!.e mont"s3 'urrent assets inc!ude assets :suc" as in.entories and trade recei.a/!es; t"at are so!d4 consumed or rea!ised as art of t"e norma! o eratin& c*c!e e.en w"en t"e* are not e8 ected to /e rea!ised wit"in twe!.e mont"s after t"e re ortin& eriod3 'urrent assets a!so inc!ude assets "e!d rimari!* for t"e ur ose of tradin& :e8am !es inc!ude some financia! assets c!assified as "e!d for tradin& in accordance wit" #nd A$ +9; and t"e current ortion of non-current financia! assets3

68

Current $ia.i$ities
;9 An entit* sha$$ c$assi#* a $ia.i$it* as current +hen3 (a) (.) (c) (d) 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> the $ia.i$it* is due to .e sett$ed +ithin t+e$0e %onths a#ter the reporting period> or it does not ha0e an unconditiona$ 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 o eratin& costs4 are art of t"e wor7in& ca ita! used in t"e entit*2s norma! o eratin& c*c!e3 An entit* c!assifies suc" o eratin& 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 re ortin& eriod3 T"e same norma! o eratin& 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! o eratin& 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! o eratin& c*c!e4 /ut are due for sett!ement wit"in twe!.e mont"s after t"e re ortin& eriod or "e!d rimari!* for t"e ur ose 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& ca ita! used in t"e entit*2s norma! o eratin& c*c!e; and are not due for sett!ement wit"in twe!.e mont"s after t"e re ortin& eriod are non-current !ia/i!ities4 su/@ect to ara&ra "s 74 and 753 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 re ortin& 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 re ortin& eriod and /efore t"e financia! statements are a ro.ed for issue3

72

7+

#f an entit* e8 ects4 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 re ortin& 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 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 re ortin& 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 re ortin& eriod and /efore t"e a ro.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 re ortin& 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 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 re ortin& eriod to ro.ide a eriod of &race endin& at !east twe!.e mont"s after t"e re ortin& eriod4 wit"in w"ic" t"e entit* can rectif* t"e /reac" and durin& w"ic" t"e !ender cannot demand immediate re a*ment3 #n res ect of !oans c!assified as current !ia/i!ities4 if t"e fo!!owin& e.ents occur /etween t"e end of t"e re ortin& eriod and t"e date t"e financia! statements are a ro.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

74

75

76

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 re ortin& 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 T"e detai! ro.ided in su/c!assifications de ends on t"e re-uirements of #nd A$s and on t"e siFe4 nature and function of t"e amounts in.o!.ed3 An entit* a!so uses t"e factors set out in ara&ra " 58 to decide t"e /asis of su/c!assification3 T"e disc!osures .ar* for eac" item4 for e8am !e9 :a; :/; items of ro ert*4 !ant and e-ui ment are disa&&re&ated into c!asses in accordance wit" #nd A$ 16< recei.a/!es are disa&&re&ated into amounts recei.a/!e from trade customers4 recei.a/!es from re!ated arties4 re a*ments and ot"er amounts< 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< ro.isions are disa&&re&ated into ot"er items< and ro.isions for em !o*ee /enefits and

78

:c;

:d; :e;

e-uit* ca ita! and reser.es are disa&&re&ated into .arious c!asses4 suc" as aid-in ca ita!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) (ii) (iii) (i0) (0) the nu%.er o# shares authorised> the nu%.er o# shares issued and #u$$* paid- and issued .ut not #u$$* paid> par 0a$ue per share- or that the shares ha0e no par 0a$ue> a reconci$iation o# the nu%.er o# shares outstanding at the .eginning and at the end o# the period> the rights- pre#erences and restrictions attaching to that c$ass inc$uding restrictions on the distri.ution o# di0idends and the repa*%ent o# capita$> shares in the entit* he$d .* the entit* or .* its su.sidiaries or associates> and

(0i)

(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 I# an entit* has rec$assi#ied (a) (.) a putta.$e #inancia$ instru%ent c$assi#ied as an e)uit* instru%entor an instru%ent that i%poses on the entit* an o.$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

A=A

.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) (.) (c) (d) (e) re0enue> #inance costs> share o# the pro#it or $oss o# associates and /oint 0entures accounted #or using the e)uit* %ethod> ta, e,pense> a sing$e a%ount co%prising the tota$ o#3 (i) (ii) the postDta, pro#it or $oss o# discontinued operations and 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>

(#) (g) (h) (i)

pro#it or $oss> each co%ponent o# other co%prehensi0e inco%e c$assi#ied .* nature (e,c$uding a%ounts in (h))> share o# the other co%prehensi0e inco%e o# associates and /oint 0entures accounted #or using the e)uit* %ethod> and tota$ 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$$ocations #or the period3 (a) pro#it or $oss #or the period attri.uta.$e to3 (i) (ii) (.) (i) (ii) nonDcontro$$ing interests- and o+ners o# the parent1 nonDcontro$$ing interests- and o+ners o# the parent1

tota$ co%prehensi0e inco%e #or the period attri.uta.$e to3

AC A:

?'e#er to Appendi, 1@ An entit* sha$$ present additiona$ $ine ite%s- headings and su.tota$s in the state%ent o# pro#it and $oss- +hen such presentation is re$e0ant to an understanding o# the entit*5s #inancia$ per#or%ance1 (ecause t"e effects of an entit*2s .arious acti.ities4 transactions and ot"er e.ents differ in fre-uenc*4 otentia! for &ain or !oss and redicta/i!it*4 disc!osin& t"e com onents of financia! erformance assists users in understandin& t"e financia! erformance ac"ie.ed and in ma7in& ro@ections of future financia! erformance3 An entit* inc!udes additiona! !ine items in t"e statement of rofit and !oss4 and it amends t"e descri tions used and t"e orderin& of items w"en t"is is necessar* to e8 !ain t"e e!ements of financia! erformance3 An entit* considers factors inc!udin& materia!it* and t"e nature and function of t"e items of income and e8 ense3 For e8am !e4 a financia! institution ma* amend t"e descri tions to ro.ide information t"at is re!e.ant to t"e o erations of a financia! institution3 An entit* does not offset income and e8 ense items un!ess t"e criteria in ara&ra " +2 are met3 An entit* sha$$ 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

86

A2

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 s ecif* circumstances w"en an entit* reco&nises articu!ar items outside rofit or !oss in t"e current eriod3 #nd A$ 8 s ecifies 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 com onents of ot"er com re"ensi.e income t"at meet t"e ramewor#2s definition of income or e8 ense 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 com onents of ot"er com re"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 com onents3

97 9+

An entit* sha$$ disc$ose rec$assi#ication co%ponents o# other co%prehensi0e inco%e1

ad/ust%ents

re$ating

to

,t"er #nd A$s s ecif* w"et"er and w"en amounts re.ious!* reco&nised in ot"er com re"ensi.e income are rec!assified to rofit or !oss3 $uc" rec!assifications are referred to in t"is $tandard as rec!assification ad@ustments3 A rec!assification ad@ustment is inc!uded wit" t"e re!ated com onent of ot"er com re"ensi.e income in t"e eriod t"at t"e ad@ustment is rec!assified to rofit or !oss3 For e8am !e4 &ains rea!ised on t"e dis osa! of a.ai!a/!e-for-sa!e financia! assets are inc!uded in rofit or !oss of t"e current eriod3 T"ese amounts ma* "a.e /een reco&nised in ot"er com re"ensi.e income as unrea!ised &ains in t"e current or re.ious eriods3 T"ose unrea!ised &ains must /e deducted from ot"er com re"ensi.e income in t"e eriod in w"ic" t"e rea!ised &ains are rec!assified to rofit or !oss to a.oid inc!udin& t"em in tota! com re"ensi.e income twice3 An entit* ma* resent rec!assification ad@ustments in t"e statement of rofit and !oss or in t"e notes3 An entit* resentin& rec!assification ad@ustments in t"e notes resents t"e com onents of ot"er com re"ensi.e income after an* re!ated rec!assification ad@ustments3 >ec!assification ad@ustments arise4 for e8am !e4 on dis osa! of a forei&n o eration :see #nd A$ 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 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 com onents are reco&nised in ot"er com re"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 re orted in retained earnin&s in t"e eriod t"at t"e* are reco&nised as ot"er com re"ensi.e income :see #nd A$ 19;3

94

95

96 >ec!assification ad@ustments do not arise on c"an&es in re.a!uation sur !us

In#or%ation to .e presented in the state%ent o# pro#it and $oss or in the notes

92 98 Bhen ite%s o# inco%e or e,pense are %ateria$- an entit* sha$$ disc$ose their nature and a%ount separate$*1 'ircumstances t"at wou!d &i.e rise to t"e se arate disc!osure of items of income and e8 ense inc!ude9 :a; write-downs of in.entories to net rea!isa/!e .a!ue or of ro ert*4 !ant and e-ui ment to reco.era/!e amount4 as we!! as re.ersa!s of suc" writedowns<

21

:/; :c; :d; :e; :f; :&;

restructurin&s of t"e acti.ities of an entit* and re.ersa!s of an* ro.isions for t"e costs of restructurin&< dis osa!s of items of ro ert*4 !ant and e-ui ment< dis osa!s of in.estments<

discontinued o erations< !iti&ation sett!ements< and ot"er re.ersa!s of ro.isions3 99 100 101 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 Dntities are encoura&ed to statement of rofit and !oss3 resent t"e ana!*sis in ara&ra " 99 in t"e

D8 enses are su/c!assified to "i&"!i&"t com onents 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 #n t"e ana!*sis /ased on t"e 6nature of e8 ense2 met"od4 an entit* a&&re&ates e8 enses wit"in rofit or !oss accordin& to t"eir nature :for e8am !e4 de reciation4 urc"ases of materia!s4 trans ort 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 e8 enses to functiona! c!assifications are necessar*3 An e8am !e of a c!assification usin& t"e nature of e8 ense met"od is as fo!!ows9 >e.enue ,t"er income '"an&es in in.entories of finis"ed &oods and wor7 in ro&ress >aw materia!s and consuma/!es used Dm !o*ee /enefits e8 ense 1e reciation and amortisation e8 ense ,t"er e8 enses Tota! e8 enses Profit /efore ta8 G G G G G G G :G; G

102

10+ 104 105

=>efer to A =>efer to A =>efer to A

endi8 1? endi8 1?3 endi8 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$ated a%ount o# di0idends per share1 #n ara&ra " 1064 t"e com onents of e-uit* inc!ude4 for e8am !e4 eac" c!ass of contri/uted e-uit*4 t"e accumu!ated /a!ance of eac" c!ass of ot"er com re"ensi.e income and retained earnin&s3 '"an&es in an entit*2s e-uit* /etween t"e /e&innin& and t"e end of t"e re ortin& eriod ref!ect t"e increase or decrease in its net assets durin& t"e eriod3 D8ce t for c"an&es resu!tin& from transactions wit" owners in t"eir ca acit* as owners :suc" as e-uit* contri/utions4 reac-uisitions of t"e entit*2s own e-uit* instruments and di.idends; and transaction costs direct!* re!ated to suc" transactions4 t"e o.era!! c"an&e in e-uit* durin& a eriod re resents t"e tota! amount of income and e8 ense4 inc!udin& &ains and !osses4 &enerated /* t"e entit*2s acti.ities durin& t"at eriod3 #nd A$ 8 re-uires retros ecti.e ad@ustments to effect c"an&es in accountin& o!icies4 to t"e e8tent ractica/!e4 e8ce t 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 retros ecti.e!*4 to t"e e8tent ractica/!e3 >etros ecti.e ad@ustments and retros ecti.e restatements are not c"an&es in

108

109

110

23

e-uit* /ut t"e* are ad@ustments to t"e o enin& /a!ance of retained earnin&s4 e8ce t w"en an #nd A$ re-uires retros ecti.e ad@ustment of anot"er com onent 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" com onent of e-uit* resu!tin& from c"an&es in accountin& o!icies and4 se arate!*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 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

(.) (c)

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$ated in#or%ation in the notes1 An entit* norma!!* resents notes in t"e fo!!owin& order4 to assist users to understand t"e financia! statements and to com are t"em wit" financia! statements of ot"er entities9 :a; :/; :c; statement of com !iance wit" #nd A$s :see ara&ra " 16;< summar* of si&nificant accountin& 117;< o!icies a !ied :see ara&ra "

114

su ortin& 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 ot"er disc!osures4 inc!udin&9 :i; contin&ent !ia/i!ities :see #nd A$ +7; and unreco&nised contractua! commitments4 and

:d;

24

:ii;

non-financia! disc!osures4 e& t"e entit*2s financia! mana&ement o/@ecti.es and o!icies :see #nd A$ 107;3

ris7

115

#n some circumstances4 it ma* /e necessar* or desira/!e to .ar* t"e order of s ecific 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 An entit* ma* resent notes ro.idin& information a/out t"e /asis of re aration of t"e financia! statements and s ecific accountin& o!icies as a se arate section of t"e financia! statements3

116

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 im ortant 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* re ares 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 #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 re orted financia! erformance and financia! osition3 1isc!osure of articu!ar accountin& o!icies is es ecia!!* usefu! to users w"en t"ose o!icies are se!ected from a!ternati.es a!!owed in #nd A$s3 An e8am !e is disc!osure of w"et"er a .enturer reco&nises its interest in a @oint!* contro!!ed entit* usin& ro ortionate conso!idation or t"e e-uit* met"od :see #nd A$ +1 Interests in ,oint -entures;3 $ome #nd A$s s ecifica!!* 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 ro ert*4 !ant and e-ui ment3 Dac" entit* considers t"e nature of its o erations and t"e o!icies t"at t"e users of its financia! statements wou!d e8 ect to /e disc!osed for t"at t* e of entit*3 For e8am !e4 users wou!d e8 ect 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 o erations or transactions in forei&n currencies4 users wou!d e8 ect disc!osure

119

120

25

of accountin& !osses3 121

o!icies for t"e reco&nition of forei&n e8c"an&e &ains and

An accountin& o!ic* ma* /e si&nificant /ecause of t"e nature of t"e entit*2s o erations e.en if amounts for current and rior eriods are not materia!3 #t is a!so a ro riate to disc!ose eac" si&nificant accountin& o!ic* t"at is not s ecifica!!* re-uired /* #nd A$s /ut t"e entit* se!ects and a !ies in accordance wit" #nd A$ 83 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 #n t"e rocess of a !*in& t"e entit*2s accountin& o!icies4 mana&ement ma7es .arious @ud&ements4 a art 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; :/; :c; :d; 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< 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 w"et"er t"e su/stance of t"e re!ations"i /etween t"e entit* and a s ecia! ur ose entit* indicates t"at t"e entit* contro!s t"e s ecia! ur ose entit*3

177

12+

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 res ect 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!o ed /* t"e entit* to distin&uis" in.estment ro ert* from owneroccu ied ro ert* and from ro ert* "e!d for sa!e in t"e ordinar* course of /usiness4 w"en c!assification of t"e ro ert* is difficu!t3

Sources o# esti%ation uncertaint*

17: An entit* sha$$ disc$ose in#or%ation a.out the assu%ptions it %a6es a.out the #uture- and other %a/or sources o# esti%ation uncertaint* at the end o# the reporting period- that ha0e a signi#icant ris6 o# resu$ting in a %ateria$ ad/ust%ent to the carr*ing a%ounts o# assets and $ia.i$ities +ithin the ne,t #inancia$ *ear1 In respect o# those assets and $ia.i$itiesthe notes sha$$ 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 re ortin& 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 ro ert*4 !ant and e-ui ment4 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 assum tions 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 T"e assum tions 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 assum tions 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 re ortin& 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 assum tions or ot"er sources of estimation uncertaint* at t"e end of t"e re ortin& eriod3 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 assum tion 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 assum tion or ot"er estimation uncertaint*< t"e sensiti.it* of carr*in& amounts to t"e met"ods4 assum tions and estimates under!*in& t"eir ca!cu!ation4 inc!udin& t"e reasons for t"e sensiti.it*< t"e e8 ected reso!ution of an uncertaint* and t"e ran&e of reasona/!* ossi/!e outcomes wit"in t"e ne8t financia! *ear in res ect of t"e carr*in& amounts of t"e assets and !ia/i!ities affected< and an e8 !anation of c"an&es made to ast assum tions concernin& t"ose assets and !ia/i!ities4 if t"e uncertaint* remains unreso!.ed3

127

129

:c;

:d;

1+0 1+1

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 $ometimes it is im ractica/!e to disc!ose t"e e8tent of t"e ossi/!e effects of an assum tion or anot"er source of estimation uncertaint* at t"e end of t"e re ortin& 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 assum tion 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 s ecific asset or !ia/i!it* :or c!ass of assets or !ia/i!ities; affected /* t"e assum tion3 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 ,t"er #nd A$s re-uire t"e disc!osure of some of t"e assum tions t"at wou!d ot"erwise /e re-uired in accordance wit" ara&ra " 1253 For e8am !e4 #nd A$ +7 re-uires disc!osure4 in s ecified circumstances4 of ma@or assum tions concernin& future e.ents affectin& c!asses of ro.isions3 #nd A$ 107re-uires disc!osure of si&nificant assum tions 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 assum tions t"at t"e entit* uses in estimatin& t"e fair .a!ues of re.a!ued items of ro ert*4 !ant and e-ui ment3

1++

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 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& ca ita!4 inc!udin&9 :i; :ii; a descri tion of w"at it mana&es as ca ita!< w"en an entit* is su/@ect to e8terna!!* im osed ca ita! re-uirements4 t"e nature of t"ose re-uirements and "ow t"ose re-uirements are incor orated into t"e mana&ement of ca ita!< and "ow it is meetin& its o/@ecti.es for mana&in& ca ita!3

1+5

:iii; :/;

summar* -uantitati.e data a/out w"at it mana&es as ca ita!3 $ome entities re&ard some financia! !ia/i!ities :e& some forms of su/ordinated de/t; as art of ca ita!3 ,t"er entities re&ard ca ita! as e8c!udin& some com onents of e-uit* :e& com onents arisin& from cas" f!ow "ed&es;3 an* c"an&es in :a; and :/; from t"e re.ious eriod3 w"et"er durin& t"e eriod it com !ied wit" an* e8terna!!* im osed ca ita! re-uirements to w"ic" it is su/@ect3 w"en t"e entit* "as not com !ied wit" suc" e8terna!!* im osed ca ita! re-uirements4 t"e conse-uences of suc" non-com !iance3

:c; :d; :e;

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 ca ita! in a num/er of wa*s and /e su/@ect to a num/er of different ca ita! 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* o erate in se.era! @urisdictions3 A"en an a&&re&ate disc!osure of ca ita! re-uirements and "ow ca ita! is mana&ed wou!d not ro.ide usefu!

28

information or distorts a financia! statement user2s understandin& of an entit*2s ca ita! resources4 t"e entit* s"a!! disc!ose se arate information for eac" ca ita! 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> the e,pected cash out#$o+ on rede%ption or repurchase o# that c$ass o# #inancia$ instru%ents> and in#or%ation a.out ho+ the e,pected cash out#$o+ on rede%ption or repurchase +as deter%ined1

(c) (d)

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> the na%e o# the parent and the u$ti%ate parent o# the group> and i# it is a $i%ited $i#e entit*- in#or%ation regarding the $ength o# its $i#e1

(.) (c) (d)

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 a endi8 !ists t"e different a endices w"ic" are t"e Accountin& $tandards and ma7e reference to #nd A$ 19 art of ot"er #ndian

1.

A endi8 A +istributions o$ /on0cash Assets to 1wners contained in Ind AS .2 %vents a$ter the !eporting Period

2.

A endi8 A "hanges in %'isting +ecommissioning, !estoration and Similar *iabilities contained in #nd A$ 164 Property, Plant and %quipment

3.

A endi8 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.

A endi8 A Intangible Assets45eb Site "osts contained in #nd A$ +84 Intangible Assets

5.

A endi8 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 re aration of $tatement of rofit and !oss4 #nternationa! Accountin& $tandard :#A$; 14 Presentation o$ inancial Statements4 ro.ides an o tion eit"er to fo!!ow t"e sin&!e statement a roac" or to fo!!ow t"e two statement a roac"3 A"i!e in t"e sin&!e statement a roac"4 a!! items of income and e8 ense are reco&nised in t"e statement of rofit and !oss4 in t"e two statements a roac"4 two statements are re ared4 one dis !a*in& com onents of rofit or !oss :se arate income statement; and t"e ot"er /e&innin& wit" rofit or !oss and dis !a*in& com onents of ot"er com re"ensi.e income3 #nd A$ 1 a!!ows on!* t"e sin&!e statement a roac"3 Para&ra " 84 of #A$ 1 is wit" reference to t"e two statement a roac"3 As #nd A$ 1 does not a!!ow t"e aforesaid o tion4 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 #A$ 1 re-uires re aration of a $tatement of '"an&es in D-uit* as a se arate statement3 #nd A$ 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 se arate 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 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$tatement of com re"ensi.e income23 T"e words 6a ro.a! of t"e financia! statements for issue2 "a.e /een used instead of 6aut"orisation of t"e financia! statements for issue2 in t"e conte8t of financia! statements considered for t"e ur ose of e.ents after t"e re ortin& eriod3 Para&ra " 8 of #A$ 1 &i.es t"e o tion 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 Para&ra " +7 of #A$ 1 ermits t"e eriodicit*4 for e8am !e4 of 52 wee7s for re aration 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

Para&ra " 99 of #A$ 1 re-uires an entit* to resent an ana!*sis of e8 enses 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 e8 enses3 #n #A$ 1 t"e fo!!owin& ara&ra "s are wit" reference to functionwise c!assification of e8 ense3 #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

#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 $c"edu!e V# to t"e 'om anies Act4 19563 Para&ra " num/er 106:c; a ears as 61e!eted 6in #A$ 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 '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$19 as com ared to #A$ 193

33