IND AS 1 - Anil

IND AS 1
 Presentation of Financial Statements

SCHEME OF PRESENTATION
 Part A : Objective & Scope
 Part B : General Features
 Part C : Financial Statements
 Part D : Notes & Disclosure
 Part E : Differences between Ind AS 1 and AS 1
 Part F : Comparison with IAS -1
 Part G : Some FAQ’s

Ind AS 1 : Presentation of Financial Statements
The Supreme Industries Ltd.
Ind AS 1 Presentation of Financial Statements
AS 1 Disclosure of Accounting Policies
IAS 1 Presentation of Financial Statements

Objective:
 This Standard prescribes the basis for presentation of
 General purpose financial statements
 with the financial statements of other entities.
 entity’s financial statements of previous periods and
 to ensure comparability both with the
It sets out overall requirements for the presentation of financial statements,
guidelines for their structure and minimum requirements for their content.
Scope:
 An entity shall apply this Standard
 in preparing and presenting General purpose financial statements
 Other Ind ASs set out the recognition, measurement and disclosure
requirements for specific transactions and other events.
 Does not apply to the structure and content of condensed interim financial statements
prepared in accordance with Ind AS 34 Interim Financial Reporting

General Features
 Presentation of true and fair view and compliance with Ind As’s
 Going Concern
 Accrual Basis of Accounting
 Materiality and Aggregation
 Offsetting
Assets and liabilities, and income and expenses, may not be offset
unless required or permitted by an Ind AS.
 Frequency of Reporting
An entity should present a complete set of financial statements
(including comparative information) at least annually.
 Comparative Information
 Consistency of Presentation

Financial Statements
 Financial statements are
a structured representation
of the financial position and financial performance
of an entity.
 Financial statements provide information about an entity’s:
a)Assets.
b)Liabilities.
c) Equity.
d)Income and expenses, including gains and losses.
e)Contributions by and distributions to owners in their capacity as owners.
f) Cash flows.

Complete set Of Financial Statements
A Balance Sheet as at the beginning of the earliest comparative period when an entity
applies an accounting policy Retrospectively or makes a retrospective Restatements of
items in its financial statements, or when it Reclassifies items in its financial statements.

Balance Sheet
 This Standard does not prescribe the order or format for presentation.
 Minimum line items to be included in the balance sheet:
a) Property, plant and equipment.
b) Investment property.
c) Intangible assets.
d) Financial assets (excluding amounts shown under (e), (h), and (i)).
e) Investments accounted for using the equity method.
f) Biological assets.
g) Inventories.
h) Trade and other receivables.
i) Cash and cash equivalents.
j) The total of assets classified as held for sale and assets included in disposal groups
k) Trade and other payables.
l) Provisions.
m) Financial liabilities (excluding amounts shown under (k) and (l)).
n) Liabilities and assets for current tax, as defined in Ind AS 12.
o) Deferred tax liabilities and deferred tax assets, as defined in Ind AS 12.
p) Liabilities included in disposal groups classified as held for sale in accordance with Ind AS 105.
q) Non-controlling interests, presented within equity.
r) Issued capital and reserves attributable to owners of the parent.

Current/Non-Current distinction
An entity should present current and non-current assets, and current and non-current
liabilities, as separate classifications in its balance sheet except when a presentation
based on liquidity provides information that is reliable and more relevant.
Current Assets Current Liabilities
 Expects to realise the asset, or intends to sell
or consume it, in its normal operating cycle.
 Holds the asset primarily for the purpose
of trading .
 Expects to realise the asset within twelve
months after the reporting period.
 Asset is cash or a cash equivalent.
All other assets shall be classified as
Non-Current.
 Expects to settle the liability in its normal
operating cycle.
 Holds the liability primarily for the purpose
of trading.
 Liability is due to be settled within twelve
months after the reporting period.
 Does not have an unconditional right to
defer settlement of the liability for at least
twelve months after the reporting period.
All other Liabilities shall be classified as
Non-Current.

Share Capital and Reserve
Entity shall disclose the following, either in the balance sheet or in the
statement of changes in equity which is part of the balance sheet, or in the
notes:
For each class of share capital:
a)Number of shares authorised.
b)Number of shares issued and fully paid, and issued but not fully paid.
c) Par value per share, or that the shares have no par value.
d)Reconciliation of the number of shares outstanding at the beginning
and at the end of the period.
e)Rights, preferences and restrictions attaching to that class including
restrictions on the distribution of dividends and the repayment of
capital.
f) Shares in the entity held by the entity or by its subsidiaries or
associates.
g) Shares reserved for issue under options and contracts for the sale of
shares, including terms and amounts.
A description of the nature and purpose of each reserve.

Statement of Profit & Loss
Entity should present, in a single statement of profit and loss, all items of income
and expense including components of other comprehensive income.
Minimum line items to be included:
a)Revenue.
b)Finance costs.
c)Share of the profit or loss of associates and joint ventures accounted for using
the equity method.
d)Tax expense.
e)A single amount comprising the total of
 The post-tax profit or loss of discontinued operations and
 The post-tax gain or loss recognised on the measurement to fair value less
costs to sell or on the disposal of the assets or disposal group(s)
constituting the discontinued operation.
f) Profit or loss.
g) Each component of other comprehensive income classified by nature (excluding amount in
(h)).
h)Share of the other comprehensive income of associates and joint ventures
accounted for using the equity method. and
i) Total comprehensive income.

An entity shall disclose the following items in the statement of profit and loss as
allocations for the period:
A.Profit or loss for the period attributable to:
I. Non-controlling interests, and
II. Owners of the parent.
B.Total comprehensive income for the period attrib utable to:
I. Non-controlling interests, and
II. Owners of the parent.
Circumstances that would give rise to the separate disclosure of items of income
and expense, include:
a)Write-downs of inventories to net realisable value or of property, plant and
equipment to recoverable amount, as well as reversals of such write-downs.
b)Restructurings of the activities of an entity and reversals of any provisions
for the costs of restructuring.
c) Disposals of items of property, plant and equipment.
d)Disposals of investments.
e)Discontinuing operations.
f) Litigation settlements.
g) Other reversals of provisions.

Statement of Change in Equity
For each component of equity, the effects of retrospective application or
retrospective restatement recognised in accordance with Ind AS 8.
For each component of equity, a reconciliation between the carrying amount at
the beginning and the end of the period, separately disclosing each changes
resulting from:
a)Profit or loss.
b)Each item of other comprehensive income.
c) Transactions with owners in their capacity as owners, showing
separately contributions by and distributions to owners and changes in
ownership interests in subsidiaries that do not result in a loss of control.
d)Any item recognised directly in equity such as amount recognised
directly in equity as capital reserve in accordance with Ind AS 103.
Statement of Changes in Equity to be shown as a PART of the Balance Sheet

Statement of Cash Flows
Information on cash flows provides a basis to assess an entity's ability to
generate cash, and the utilization of those cash flows.
All entities are required to provide a cash flow statement regardless of their
size and the industry they operate in.
There are no exemptions for subsidiaries whose parents have also published
a cash flow statement
Major Components
– operating cash flows
– investing cash flows
– financing cash flows

Notes to Financial Statements
The notes should:
Present information about the basis of preparation of the financial
statements and the specific accounting policies used.
Disclose any information required by Ind ASs that is not presented elsewhere
in the financial statements.
Provide information that is not presented elsewhere in the financial
statements but is relevant to an understanding of them.
An entity should cross-reference each item in the financial statements to the
related information in the relevant note.
Entity should give disclosure of the measurement bases and the accounting
policies an entity uses
The entity's accounting policies should be clearly stated and presented
The disclosure given in respect of an accounting policy should be sufficiently
detailed that it is understandable
Disclosure of Accounting Policies

In addition to the distributions information in the statement of changes in equity
( part of B/S), the following must be disclosed in the notes
“The amount of dividends proposed or declared before the financial statements
were authorised for issue but not recognised as a distribution to wners during
the period, and the related amount per share and the amount of any
cumulative preference dividends not recognised”
Disclosure about Dividend

Capital Disclosure
An entity shall disclose information that enables users of its financial statements
to evaluate the entity’s objectives, policies and processes for managing capital. To
comply with this, the disclosures include:
Qualitative information about the entity's objectives, policies and processes
for managing capital, including
– Description of capital it manages
– Nature of external capital requirements, if any
– How it is meeting its objectives
Quantitative data about what the entity regards as capital
Changes from one period to another
Whether the entity has complied with any external capital requirements and
If it has not complied, the consequences of such non-compliance.

The following additional disclosures if an entity has a puttable instrument that is
classified as an equity instrument (to the extent not disclosed elsewhere):
Summary quantitative data about the amount classified as equity
The entity's objectives, policies and processes for managing its obligation to
repurchase or redeem the instruments when required to do so by the
instrument holders, including any changes from the previous period
The expected cash outflow on redemption or repurchase of that class of
financial instruments and
Information about how the expected cash outflow
Disclosures about Puttable Financial
Instruments

Differences between Ind AS 1 and Existing AS 1
Ind AS 1 generally deals with presentation of financial statements, whereas existing
AS 1 (issued1979) deals only with the disclosure of accounting policies.
The scope of Ind AS 1 is thus much wider and line by line comparison of the
difference with the present standard is not possible. However, the major
requirements as laid down in Ind AS 1 are as follows:
1)An enterprise shall make an explicit statement in the financial statements of
compliance with all the Indian Accounting Standards. Further, Ind AS 1 allows
deviation from a requirement of an accounting standard in case the
management concludes that compliance with Ind ASs will be misleading and if
the regulatory framework requires or does not prohibit such a departure.
2)Ind AS 1 requires presentation and provides criteria for classification of
Current / Non- Current assets / liabilities.
3)Ind AS 1 prohibits presentation of any item as extraordinary item in the
statement of profit and loss or in the notes.

4)Ind AS 1 requires disclosure of judgments made by management while
framing of accounting policies. Also, it requires disclosure of key assumptions
about the future and other sources of measurement uncertainty that have
significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within next financial year.
5) Ind AS 1 requires classification of expenses to be presented based on nature of
expenses.
6)Ind AS 1 requires presentation of balance sheet as at the beginning of the
earliest period when an entity applies an accounting policy retrospectively or
makes a retrospective restatement of items in the financial statements, or
when it reclassifies items in its financial statements.
7)In respect of reclassification of items, Ind AS 1 requires disclosure of nature,
amount and reason for reclassification in the notes to financial statements.
8)Ind AS 1 requires the financial statements to include a Statement of Changes
in Equity to be shown as a part of the balance sheet which, inter alia,
includes reconciliation between opening and closing balance for each
component of equity.

Comparison with IAS -1
IAS 1 IND AS 1
 Option either to follow the single statement
approach or to follow the two statement
approach.
 Statement of Changes in Equity is a
separate statement.
 Term ‘Statement of financial position’ and
‘Statement of Profit and Loss’ is used.
 Gives the option to individual entities to
follow different terminology for the titles of
financial statements.
 Requires an entity to present an analysis of
expenses recognized in profit or loss using a
classification based on either their nature
or their function.
 Allows only the single statement
approach.
 Statement of changes in equity to be
shown as a part of the balance sheet.
 The term ‘balance sheet’ and
‘Statement of profit and loss and other
comprehensive income’ is used.
 Remove alternatives by giving one
terminology to be used by all entities.
 Requires only nature-wise classification
of expenses.

Does Ind AS 1 prescribe any format for the presentation of the general
purpose financial statements?
Ind AS 1 does not prescribe any format for presentation of general
purpose financial statements but prescribes the minimum disclosures
required to be made.
Ind AS 27, Consolidated and Separate Financial Statements, lays down the
formats of consolidated financial statements for companies.
Formats for presentation will be governed by the applicable laws and
regulations. (Companies Act 2013)

Note No. Current Year Previous Year
EQUITY AND LIABILITIES
Equity
Equity Share Capital
Reserves
Other Components of Equity
Equity attributable to Owners/Shareholders
Non Controlling Interest
Liabilities
Non Current Liabilities
Financial Liabilities
- Long term borrowings
- Other financial liabilities
Trade and other payables
Long term provisions
Deferred tax liabilities (Net)
Other Non current liabilities
Current Liabilities
Financial Liabilities
- Short term borrowings
- Other financial liabilities
Trade and other payables
Short term provisions
Liabilities for current tax (Net)
Other current liabilities
TOTAL Contd….
THE SUPREME INDUSTRIES LIMITED
BALANCE SHEET AS ON …..

Note No. Current Year Previous Year
ASSETS
Non Current Assets
Property, plant and equipment
Capital work-in-progress
Investment property
Goodwill
Intangible assets under development
Biological assets other than bearer plants
Financial assets
- Non-Current investments
- Long-term loans and advances
- Others
Deferred tax assets (Net)
Other non-current assets
Current Assets
Inventories
Financial assets
- Current investments
- Trade and other receivables
- Cash and Cash equivalents
- Short term loans and advances
Assets for current tax (net)
Other current assets
Non-current assets classified as held for sale
TOTAL

Statement of Profit and Loss for the period ended………..
Note No.
For Current Year
ended
For Previous Year
ended
Revenue from operations
Other income
Total revenue
Expenses
Cost of materials consumed
Purchase of stock-in-trade
Emloyee benefit expense
Finance cost
Foreign exchange (gain)/loss (net)
Depreciation and amortisation expense
Other expense
Total expenses
Profit/ (loss) before exceptional items and tax
Exceptional items
Profit/ (loss) before tax
Tax expense
a) Current tax
b) Deferred tax
Contd……

Note No.
For Current
Year ended
For Previous
Year ended
Profit/ (loss) after tax
Attributable to:
Owners/Shareholders
Non controlling interests
Earnings per equity share
a) Basic
b) Diluted
Other comprehensive income
- Items that will not be reclassified to profit or loss
- Income tax relating to Items that will not be reclassified
to profit or loss
- Items that will be reclassified to profit or loss
- Income tax relating to Items that will be reclassified to
profit or loss
Total comprehensive income for the period
Attributable to:
Owners/Shareholders
Non controlling interests
Profit/ loss + other comprehensive income

Statement of changes in equity to be shown as part of the balance sheet.
How should such presentation be made?
It will be appropriate to present separately from the balance sheet, a
statement titled “statement of changes in equity forming part of balance
sheet”.

Statement of changes in equity for the period ended…….
Equity share capital
Opening balance as at 1 Apr
20XX
Changes in equity share
capital during the year
Closing balance as at 31
Mar 20XX
xxxx Equity shares of Rs.xxxx each
Other Equity
Opening balance as
at 1 Apr 20XX
Changes in
accounting policy/
prior period errors
Restated
balance as at 1
Aprl 20XX
Total comprehensive
income for the year
Dividends Transfer
to retained
earnings
Any other change
(to be specified)
Closing balance as
at 31 Mar 20XX
Equity component of other financial instrument
Retained Earnings @
Reserves
Reserves representing unrealised gains/ losses
- Debt instruments through other
comprehensive income
- Equity instruments through other
comprehensive income
- Effective portion of cash flow hedges
- Revaluation surplus
- Remeasurements of the net defined benefit
plans
- Exchange differences on translating the financial statements of a foreign
operation
- Others
Other reserves (to be specified separately)
Total reserves
Money received against share warrants
Others

Statement of changes in equity to be shown as part of the balance sheet.
How should such presentation be made?
It will be appropriate to present separately from the balance sheet, a
statement titled “statement of changes in equity forming part of balance
sheet”.
Ind AS 1 states that an Entity whose financial statements comply with Ind
ASs shall make an explicit and unreserved statement of such compliance in
the notes. Can an entity claim compliance with Ind ASs if it has not
complied with one or more Ind Ass.
An entity shall not describe financial statements as complying with Ind ASs
unless they comply with all the requirements of Ind ASs. Therefore,
unless all the requirements of Ind ASs are complied with, the entity cannot
claim compliance with the Ind ASs.

What is other comprehensive income?
Other comprehensive income comprises items of income and expense
(including reclassification adjustments) that are not recognised in profit or
loss as required or permitted by other Ind ASs.
The components of other comprehensive income include:
a)Changes in revaluation surplus (see Ind AS 16 Property, Plant and
Equipment and Ind AS 38 Intangible Assets).
b)Actuarial gains and losses on defined benefit plans recognised in
accordance with paragraph 92 and 129A of Ind AS 19 Employee Benefits.
c)Gains and losses arising from translating the financial statements of a
foreign operation (see Ind AS 21 The Effects of Changes in Foreign
Exchange Rates).
d)Gains and losses on remeasuring available-for-sale financial assets (see
Ind AS 39 Financial Instruments: Recognition and Measurement).
e)The effective portion of gains and losses on hedging instruments in a cash
flow hedge (see Ind AS 39).

References to matters contained in other Indian
Accounting Standards
Distributions of Non-cash Assets to Owners contained in Ind AS 10 Events
after the Reporting Period.
Changes in Existing Decommissioning, Restoration and Similar Liabilities
contained in Ind AS 16, Property, Plant and Equipment
IAS 19—The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction contained in Ind AS 19 Employee
Benefits.
Intangible Assets—Web Site Costs contained in Ind AS 38, Intangible Assets.
Extinguishing Financial Liabilities with Equity Instruments contained in Ind AS
39 Financial Instruments: Recognition and Measurement.

thank you
CA Anil Soni
(XF Division)
Ph. 9601040709
Email – anil_soni@supreme.co.in

IND AS 1 - Anil

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