Standard 1: Presentation of Financial Statements

Standard 1: Presentation of Financial Statements · Complied AI

(b)

how the entity’s circumstances differ from those of other entities that comply with the requirement. If other entities in similar circumstances comply with the requirement, there is a rebuttable presumption that the entity’s compliance with the requirement would not be so misleading that it would conflict with the objective of financial statements set out in the Conceptual Framework .

Going concern

25 When preparing financial statements, management shall make an assessment of an entity’s ability to continue as a going concern. An entity shall prepare financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. When management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the entity’s ability to continue as a going concern, the entity shall disclose those uncertainties. When a n entity does not prepare financial statements on a going concern basis, it shall disclose that fact, together with the basis on which it prepared the financial statements and the reason why the entity is not regarded as a going concern.

26 In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period. The degree of consideration depends on the facts in each case. When an entity has a history of profitable operations and ready access to financial resources, the entity may reach a conclusion that the going concern basis of accounting is appropriate without detailed analysis. In other cases, man agement may need to consider a wide range of factors relating to current and expected profitability, debt repayment schedules and potential sources of replacement financing before it can satisfy itself that the going concern basis is appropriate.

Accrual basis of accounting

27 An entity shall prepare its financial statements, except for cash flow information, using the accrual basis of accounting.

28 11 When the accrual basis of accounting is used, an entity recognises items as assets, liabilities, equity, income and expenses (the elements of financial statements) when they satisfy the definitions and recognition criteria for those elements in the Conceptual Framework .

Materiality and aggregation

29 An entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial except when required by law.

30 Financial statements result from processing large numbers of transactions or other events that are aggregated into classe s according to their nature or function. The final stage in the process of aggregation and classification is the presentation of condensed and classified data, which form line items in the financial statements. If a line item is not individually material, it is aggregated with other items either in those statements or in the notes. An item that is not sufficiently material to warrant separate presentation in those statements may warrant separate presentation in the notes.

30A 12 When applying this and other Ind ASs an entity shall decide, taking into consideration all relevant facts and circumstances, how it aggregates information in the financial statements, which include the notes. An entity shall not reduce the understandability of its financial statements by obscuring material information with immaterial information or by aggregating material items that have different natures or functions.

31 13 Some Ind ASs specify information that is required to be included in the financial statements, which include the notes. An entity need not provide a specific disclosure required by an Ind AS if the information resulting from that disclosure is not material except when required by law. This is the case even if the Ind AS contains a list of specific requirements or describes them as minimum requirements. An entity shall also consider whether to provide additional disclosures when compliance with the specific requirements in Ind AS is insufficient to enable users of financial statements to understand the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance.

Offsetting

32 An entity shall not offset assets and liabilities or income and expenses, unless required or permitted by an Ind AS.

33 An entity reports separately both assets and liabilities, and income and expenses. Offsetting in the statement of profit and loss or balance sheet, except when offsetting reflects the substance of the transaction or other event, detracts from the ability of users both to understan d the transactions, other events and conditions that have occurred and to assess the entity’s future cash flows. Measuring assets net of valuation allowances—for example, obsolescence allowances on inventories and doubtful debts allowances on receivables —is not offsetting.

34 14 Ind AS 115, Revenue from Contracts with Customers , requires an entity to measure revenue from contracts with customers at the amount of consideration to which the entity expects to be entitled in exchange for transferring promised goods or services. For example, the amount of revenue recognized reflects any trade discounts and volume rebates the entity allows. An entity undertakes, in the course of its ordinary activities, other transactions that do not generate revenue but are incidental to the main revenue-generating activities. An entity presents the results of such transactions, when this presentation reflects the substance of the transaction or other event, by netting any income with related expenses arising on the same transaction. F or example:

(b)

the fact that amounts presented in the financial statements are not entirely comparable.

37 [Refer Appendix 1]

Comparative information

Minimum comparative information

38 Except when Ind ASs permit or require otherwise, an entity shall present comparative information in respect of the preceding period for all amounts reported in the current period’s financial statements. An entity shall include comparative information for narrative and descriptive information if it is relevant to understanding the current period’s financial statements.

38A An entity shall present, as a minimum, two balance sheets , two statements of profit and loss, two statements of cash flows and two statements of changes in equity, and related notes.

38B In some cases, narrative information provided in the financial statements for the preceding period(s) continues to be relevant in the current period. For example, an entity discloses in the current period details of a legal dispute, the outcome of which was uncertain at the end of the preceding period and is yet to be resolved. Users may benefit from the disclosure of information that the uncertainty existed at the end of the preceding period and from the disclosure of information about the steps that have been taken during th e period to resolve the uncertainty.

Additional comparative information

38C An entity may present comparative information in addition to the minimum comparative financial statements required by Ind ASs, as long as that information is prepared in accordance with Ind ASs. This comparative information may consist of one or more statements referred to in paragraph 10, but need not comprise a complete set of financial statements. When this is the case, the entity shall present related note information for those additional statements.

38D For example, an entity may present a third statement of profit and loss (thereby presenting the current period, the preceding period and one additional comparative period). However, the entity is not required to present a third balance sheet, a third statement of cash flows or a third statement of changes in equity (ie an additional financial statement comparative). The entity is required to present, in the notes to the financial statements, the comparative information related t o that additional statement of profit and loss.

39-40 [Refer Appendix 1]

Change in accounting policy, retrospective restatement or reclassification

40A An entity shall present a third balance sheet as at the beginning of the preceding period in addition to the minimum comparative financial statements required in paragraph 38A if:

(b)

an Ind AS requires a change in presentation.

46 For example, a significant acquisition or disposal, or a review of the presentation of the financial statements, might suggest that the financial statements need to be presented differently. An entity changes the presentation of its financial statements only if the changed presentation provides information that is reliable and more relevant to users of the financial statements and the revised structure is likely to continue, so that comparability is not impaired. When making such changes in presentation, an entity reclassifies its comparative information in accordance with paragraphs 41 and 42.

Structure and content

Introduction

47 This Standard requires particular disclosures in the balance sheet or in the statement of profit and loss, or in the statement of changes in equity and requires disclosure of other line items either in those statements or in the notes. Ind AS 7, Statement of Cash Flows , sets out requirements for the presentation of cash flow information.

48 This Standard sometimes uses the term ‘disclosure’ in a broad sense, encompassing items presented in the financial statements. Disclosures are also required by other Ind ASs. Unless specified to the contrary elsewhere in this Standard or in another Ind AS, such disclosures may be made in the financial statements.

Identification of the financial statements

49 An entity shall clearly identify the financial statements and distinguish them from other information in the same published document.

50 Ind ASs apply only to financial statements, and not necessarily to other information presented in an annual report, a regulatory filing, or another document. Therefore, it is important that users can distinguish information that is prepared using Ind ASs from other information that may be useful to users but is not the subject of those requirements.

51 An entity shall clearly identify each financial statement and the notes. In addition, an entity shall display the following information prominently, and repeat it when necessary for the information presented to be understandable:

(b)

more than twelve months after the reporting period.

62 When an entity supplies goods or services within a clearly identifiable operating cycle, separate classification of current and non-current assets and liabilities in the balance sheet provides useful information by distinguishing the net assets that are continuously circulating as working capital from those used in the entity’s long-term operations. It also highlights assets that are expected to be realised within the current operating cycle, and liabilities that are due for settlement within the same period.

63 For some entities, such as financial institutions, a presentation of assets and liabilities in increasing or decreasing order of liquidity provides information that is reliable and more relevant than a current/non-current presentation because the entity does not supply goods or services within a clearly identifiable operating cycle .

64 In applying paragraph 60, an entity is permitted to present some of its assets and liabilities using a current/non-current classification and others in order of liquidity when this provides information that is reliable and more relevant. The need for a mixed basis of presentation might arise when an entity has diverse operations.

65 Information about expected dates of realisation of assets and liabilities is useful in assessing the liquidity and solvency of an entity. Ind AS 107, Financial Instruments: Disclosures, requires disclosure of the maturity dates of financial assets and financial liabilities. Financial assets include trade and other receivables, and financial liabilities include trade and other payables. Information on the expected date of recovery of non-monetary assets such as inventories and expected date of settlement for liabilities such as provisions is also useful, whether assets and liabilities are classified as current or as non - current. For example, an entity discloses the amount of invento ries that are expected to be recovered more than twelve months after the reporting period.

Current assets

66 An entity shall classify an asset as current when:

(b)

do not affect whether that right exists at the end of the reporting period if an entity is required to comply with the covenant only after the reporting period (for example, a covenant based on the entity’s balance sheet six months after the end of the reporting period).

73 26 If an entity has the right, at the end of the reporting period, to roll over an obligation for at least twelve months after the reporting period under an existing loan facility, it classifies the obligation as non- current, even if it would otherwise be due within a shorter period. If the entity has no such right, the entity does not consider the potential to refinance the obligation and classifies the obligation as current.

74 27 Where there is a breach of a material covenant of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach. However, in such circumstances, the entity shall disclose information as per paragraphs 18 and 19 of Ind AS 107 for each breach.

75 28 An entity classifies the liability as non-current if the lender agreed by the end of the reporting period to provide a period of grace ending at least twelve months after the reporting period, within which the entity can rectify the breach and during which the lender cannot demand immediate repayment.

75A 29 Classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least twelve months after the reporting period. If a liability meets the criteria in paragraph 69 for classification as non-current, it is classified as non-current even if management intends or expects the entity to settle the liability within twelve months after the reporting period, or even if the entity settles the liability between the end of the reporting period and the date the financial statements are approved for issue. However, in either of those circumstances, the entity may need to disclose information about the timing of settlement to enable users of its financial statements to understand the impact of the liability on the entity’s balance sheet (see paragraph 17(c) ).

76 [Refer Appendix 1]

30 Settlement (paragraphs 69(a), 69(c) and 69(d))

76A For the purpose of classifying a liability as current or non-current, settlement refers to a transfer to the counterparty that results in the extinguishment of the liability. The transfer could be of:

(d)

not be displayed with more prominence than the subtotals and totals required in Ind AS for the statement of profit and loss.

85B 37 An entity shall present the line items in the statement of profit and loss that reconcile any subtotals presented in accordance with paragraph 85 with the subtotals or totals required in Ind AS for such statement.

86 Because the effects of an entity’s various activities, transactions and other events differ in frequency, potential for gain or loss and predictability, disclosing the components of financial performance assists users in understanding the financial performance achieved and in making projections of future financial performance. An entity includes additional line items in the statement of profit and loss, and it amends the descriptions used and the ordering of items when this is necessary to explain the elements of financial performance. An entity considers factors including materiality and the nature and function of the items of income and expense. For example, a financial institution may amend the descriptions to provide information that is relevant to the operations of a financial institution. An entity does not offset income and expense items unless the criteria in paragraph 32 are met.

87 An entity shall not present any items of income or expense as extraordinary items, in the statement of profit and loss or in the notes.

Profit or loss for the period

88 An entity shall recognise all items of income and expense in a period in profit or loss unless an Ind AS requires or permits otherwise.

89 38 Some Ind ASs specify circumstances when an entity recognises particular items outside profit or loss in the current period. Ind AS 8 specifies two such circumstances: the correction of errors and the effect of changes in accounting policies. Other Ind ASs require or permit components of other comprehensive income that meet the Conceptual Framework’s definition of income or expense to be excluded from profit or loss (see paragraph 7).

Other comprehensive income for the period

90 An entity shall disclose the amount of income tax relating to each item of other comprehensive income, including reclassification adjustments, either in the statement of profit and loss or in the notes.

91 An entity may present items of other comprehensive income either:

(a)

net of related tax effects, or

If an entity elects alternative (b), it shall allocate the tax between the items that might be reclassified subsequently to the profit or loss section and those that will not be reclassified subsequently to the profit or loss section.

92 An entity shall disclose reclassification adjustments relating to components of other comprehensive income.

93 Other Ind ASs specify whether and when amounts previously recognised in other comprehensive income are reclassified to profit or loss. Such reclassifications are referred to in this Standard as reclassification adjustments. A reclassification adjustment is included with the related component of other comprehensive income in the period that the adjustment is reclassified to profit or loss. These amounts may have been recognised in other comprehensive income as unrealised gains in the current or previous periods. Those unrealised gains must be deducted from other comprehensive income in the period in which the realised gains are reclassified to profit or loss to avoid including them in total comprehensive income twice.

94 An entity may present reclassification adjustments in the statement of profit and loss or in the notes. An entity presenting reclassification adjustments in the notes presents the items of other comprehensive income after any related reclassification adjustments.

95 39 Reclassification adjustments arise, for example, on disposal of a foreign operation (see Ind AS 21) and when some hedged forecast cash flows affect profit or loss (see paragraph 6.5.11(d) of Ind AS 109 in relation to cash flow hedges).

96 Reclassification adjustments do not arise on changes in revaluation surplus recognised in accordance with Ind AS 16 or Ind AS 38 or on reameasurements of defined benefit plans recognised in accordance with Ind AS 19. These components are recognised in other comprehensive income and are not reclassified to profit or loss in subsequent periods. Changes in revaluation surplus may be transferred to retained earnings in subsequent periods as the asset is used or when it is derecognised (see Ind AS 16 and Ind AS 38). In accordance with Ind AS 109, reclassification adjustments do not arise if a cash flow hedge or the accounting for the time value of an option (or the forward element of a forward contract or the foreign currency basis spread of a financial instrument) result in amounts that are removed from the cash flow hedge reserve or a separate component of equity, respectively, and included directly in the initial cost or other carrying amount of an asset or a liability. These amounts are directly transferred to assets or liabilities.

Information to be presented in the statement of profit and loss or in the notes

97 When items of income or expense are material, an entity shall disclose their nature and amount separately.

98 Circumstances that would give rise to the separate disclosure of items of income and expense include:

(d)

for each component of equity, a reconciliation between the carrying amount at the beginning and the end of the period, separately (as a minimum) disclosing changes resulting from:

(i)

profit or loss;

(ii)

other comprehensive income;

(iii)

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; and

(iv)

any item recognised directly in equity such as amount recognised directly in equity as capital reserve with paragraph 36A of Ind AS 103.

Information to be presented in the statement of changes in equity or in the notes

106A For each component of equity an entity shall present, either in the statement of changes in equity or in the notes, an analysis of other comprehensive income by item (see paragraph 106 (d) (ii)).

107 An entity shall present, either in the statement of changes in equity or in the notes, the amount of dividends recognised as distributions to owners during the period, and the related amount of dividends per share.

108 In paragraph 106, the components of equity include, for example, each class of contributed equity, the accumulated balance of each class of other comprehensive income and retained earnings.

109 Changes in an entity’s equity between the beginning and the end of the reporting period reflect the increase or decrease in its net assets during the period. Except for changes resulting from transactions with owners in their capacity as owners (such as equity contributions, reacquisitions of the entity’s own equity instruments and dividends) and transaction costs directly related to such transactions, the overall change in equity during a period represents the total amount of income and expense, including gains and losses, generated by the entity’s activities during that period.

110 Ind AS 8 requires retrospective adjustments to effect changes in accounting policies, to the extent practicable, except when the transition provisions in another Ind AS require otherwise. Ind AS 8 also requires restatements to correct errors to be made retrospectively, to the extent practicable. Retrospective adjustments and retrospective restatements are not changes in equity but they are adjustments to the opening balance of retained earnings, except when an Ind AS requires retrospective adjustment of another component of equity. Paragraph 106(b) requires disclosure in the statement of changes in equity of the total adjustment to each component of equity resulting from changes in accounting policies and, separately, from corrections of errors. These adjustments are disclosed for each prior period and the beginning of the period.

Statement of cash flows

111 Cash flow information provides users of financial statements with a basis to assess the ability of the entity to generate cash and cash equivalents and the needs of the entity to utilise those cash flows. Ind AS 7 sets out requirements for the presentation and disclosure of cash flow information.

Notes

Structure

112 The notes shall:

(2)

non-financial disclosures, eg the entity’s financial risk management objectives and policies (see Ind AS 107 ).

115 42 Omitted

116 An entity may present notes providing information about the basis of preparation of the financial statements and specific accounting policies as a separate section of the financial statements.

Disclosure of accounting policy information

117 43 An entity shall disclose material accounting policy information (see paragraph 7). Accounting policy information is material if, when considered together with other information included in an entity's financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements.

117A 44 Accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may nevertheless be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material.

117B Accounting policy information is expected to be material if users of an entity�s financial statements would need it to understand other material information in the financial statements. For example, an entity is likely to consider accounting policy information material to its financial statements if that information relates to material transactions, other events or conditions and:

(a)

the entity changed its accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements;

(b)

the entity chose the accounting policy from one or more options permitted by Ind ASs;

(c)

the accounting policy was developed in accordance with Ind AS 8 in the absence of an Ind AS that specifically applies;

(d)

the accounting policy relates to an area for which an entity is required to make significant judgements or assumptions in applying an accounting policy, and the entity discloses those judgements or assumptions in accordance with paragraphs 122 and 125; or

(e)

the accounting required for them is complex and users of the entity's financial statements would otherwise not understand those material transactions, other events or conditions-such a situation could arise if an entity applies more than one Ind AS to a class of material transactions.

117C Accounting policy information that focuses on how an entity has applied the requirements of the Ind ASs to its own circumstances provides entity-specific information that is more useful to users of financial statements than standardised information, or information that only duplicates or summarises the requirements of the Ind ASs.

117D If an entity discloses immaterial accounting policy information, such information shall not obscure material accounting policy information.

117E An entity's conclusion that accounting policy information is immaterial does not affect the related disclosure requirements set out in other Ind ASs.

118 45 Omitted

119 46 Omitted

120 47 Omitted

121 48 Omitted

122 49 An entity shall disclose, along with material accounting policy information or other notes, the judgements, apart from those involving estimations (see paragraph 125), that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

123 In the process of applying the entity’s accounting policies, management makes various judgements, apart from those involving estimations, that can significantly affect the amounts it recognises in the financial statements. For example, management makes judgements in determining:

(a)

[Refer Appendix 1]

(b)

50 when substantially all the significant risks and rewards of ownership of financial assets and, for lessor, assets subject to leases, are transferred to other entities;

(c)

whether, in substance, particular sales of goods are financing arrangements and therefore do not give rise to revenue; and

(d)

whether the contractual terms of a financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

124 Some of the disclosures made in accordance with paragraph 122 are required by other Ind ASs. For example, Ind AS 112, Disclosure of Interests in Other Entities , requires an entity to disclose the judgments it has made in determining whether it controls another e ntity. Ind AS 40, Investment Property , requires disclosure of the criteria developed by the entity to distinguish investment property from owner-occupied property and from property held for sale in the ordinary course of business, when classification of the property is difficult.

Sources of estimation uncertainty

125 An entity shall disclose information about the assumptions it makes about the future, and other major sources of estimation uncertainty at the end of the reporting period, that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year. In respect of those assets and liabilities, the notes shall include details of:

(a)

their nature, and

(b)

their carrying amount as at the end of the reporting period.

126 Determining the carrying amounts of some assets and liabilities requires estimation of the effects of uncertain future events on those assets and liabilities at the end of the reporting period. For example, in the absence of recently observed market prices, future-oriented estimates are necessary to measure the recoverable amount of classes of property, plant and equipment, the effect of technological obsolescence on inventories, provisions subject to the future outcome of litigation in progress, and long-term employee benefit liabilities such as pension obligations. These estimates involve assumptions about such items as the risk adjustment to cash flows or discount rates, future changes in salaries and future changes in prices affecting other costs.

127 The assumptions and other sources of estimation uncertainty disclosed in accordance with paragraph 125 relate to the estimates that require management’s most difficult, subjective or complex judgements. As the number of variables and assumptions affecting the possible future resolution of the uncertainties increases, those judgements become more subjective and complex, and the potential for a consequential material adjustment to the carrying amounts of assets and liabilities normally increases accordingly.

128 The disclosures in paragraph 125 are not required for assets and liabilities with a significant risk that their carrying amounts might change materially within the next financial year if, at the end of the reporting period, they are measured at fair value based on a quoted price in an active market for an identical asset or liability. Such fair values might change materially within the next financial year but these changes would not arise from assumptions or other sources of estimation uncertainty at the end of the reporting period.

129 An entity presents the disclosures in paragraph 125 in a manner that helps users of financial statements to understand the judgements that management makes about the future and about other sources of estimation uncertainty. The nature and extent of the information provided vary according to the nature of the assumption and other circumstances. Examples of the types of disclosures an entity makes are:

(a)

the nature of the assumption or other estimation uncertainty;

(b)

the sensitivity of carrying amounts to the methods, assumptions and estimates underlying their calculation, including the reasons for the sensitivity;

(c)

the expected resolution of an uncertainty and the range of reasonably possible outcomes within the next financial year in respect of the carrying amounts of the assets and liabilities affected; and

(d)

an explanation of changes made to past assumptions concerning those assets and liabilities, if the uncertainty remains unresolved.

130 This Standard does not require an entity to disclose budget information or forecasts in making the disclosures in paragraph 125.

131 Sometimes it is impracticable to disclose the extent of the possible effects of an assumption or another source of estimation uncertainty at the end of the reporting period. In such cases, the entity discloses that it is reasonably possible, on the basis of existing knowledge, that outcomes within the next financial year that are different from the assumption could require a material adjustment to the carrying amount of the asset or liability affected. In all cases, the entity discloses the nature and carrying amount of the specific asset or liability (or class of assets or liabilities) affected by the assumption.

132 The disclosures in paragraph 122 of particular judgements that management made in the process of applying the entity’s accounting policies do not relate to the disclosures of sources of estimation uncertainty in paragraph 125.

133 Other Ind ASs require the disclosure of some of the assumptions that would otherwise be required in accordance with paragraph 125. For example, Ind AS 37 requires disclosure, in specified circumstances, of major assumptions concerning future events affecting classes of provisions. Ind AS 113, Fair Value Measurement, requires disclosure of significant assumptions (including the valuation technique(s) and inputs) the entity uses when measuring the fair values of assets and liabilities that are carried at fair value.

Capital

134 An entity shall disclose information that enables users of its financial statements to evaluate the entity’s objectives, policies and processes for managing capital.

135 To comply with paragraph 134, the entity discloses the following:

(a)

qualitative information about its objectives, policies and processes for managing capital, including:

(i)

a description of what it manages as capital;

(ii)

when an entity is subject to externally imposed capital requirements, the nature of those requirements and how those requirements are incorporated into the management of capital; and

(iii)

how it is meeting its objectives for managing capital.

(b)

summary quantitative data about what it manages as capital.Some entities regard some financial liabilities (eg some forms of subordinated debt) as part of capital. Other entities regard capital as excluding some components of equity (eg components arising from cash flow hedges).

(c)

any changes in (a) and (b) from the previous period.

(d)

whether during the period it complied with any externally imposed capital requirements to which it is subject.

(e)

when the entity has not complied with such externally imposed capital requirements, the consequences of such non- compliance.

The entity bases these disclosures on the information provided internally to key management personnel.

136 An entity may manage capital in a number of ways and be subject to a number of different capital requirements. For example, a conglomerate may include entities that undertake insurance activities and banking activities and those entities may operate in several jurisdictions. When an aggregate disclosure of capital requirements and how capital is managed would not provide useful information or distorts a financial statement user’s understanding of an entity’s capital resources, the entity shall disclose separate information for each capital requirement to which the entity is subject.

Puttable financial instruments classified as equity

136A For puttable financial instruments classified as equity instruments, an entity shall disclose (to the extent not disclosed elsewhere):

(a)

summary quantitative data about the amount classified as equity;

(b)

its 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;

(c)

the expected cash outflow on redemption or repurchase of that class of financial instruments; and

(d)

information about how the expected cash outflow on redemption or repurchase was determined.

Other disclosures

137 An entity shall disclose in the notes:

(b)

the amount of any cumulative preference dividends not recognised.

(a)

the amount of dividends proposed or declared before the financial statements were approved for issue but not recognised as a distribution to owners during the period, and the related amount per share; and

138 An entity shall disclose the following, if not disclosed elsewhere in information published with the financial statements:

(a)

the domicile and legal form of the entity, its country of incorporation and the address of its registered office (or principal place of business, if different from the registered office);

(b)

a description of the nature of the entity’s operations and its principal activities;

(c)

the name of the parent and the ultimate parent of the group; and

(d)

if it is a limited life entity, information regarding the len gth of its life.

51 Transition and Effective Date

139 *

139A *

139B *

139C *

139D *

139E *

139F *

139G *

139H *

139I *

139J *

139K *

139L *

139M *

139N As a consequence of issuance of Ind AS 115, Revenue from Contracts with Customers , paragraph 34 is amended. An entity shall apply those amendments when it applies Ind AS 115.

139O 52 *

139P *

139Q Ind AS 116, Leases , amended paragraph 123. An entity shall apply that amendment when it applies Ind AS 116.

139R 53 Ind AS 117 amended paragraphs 7, 54 and 82. An entity shall apply those amendments when it applies Ind AS 117.

139S 54 Amendments to References to the Conceptual Framework in Ind AS issued in 2021, amended paragraphs 15, 19–20, 23–24, 28 and 89. An entity shall apply those amendments for annual periods beginning on or after the 1 s t April, 2021. An entity shall apply the amendments to Ind AS 1 retrospectively in accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors . However, if an entity determines that retrospective application would be impracticable or would involve undue cost or effort, it shall apply the amendments to Ind AS 1 by reference to paragraphs 23–28, 50–53 and 54F of Ind AS 8.

139T 55 Definition of Material (Amendments to Ind AS 1 and Ind AS 8) amended paragraph 7 of Ind AS 1 and paragraph 5 of Ind AS 8, and deleted paragraph 6 of Ind AS 8. An entity shall apply those amendments prospectively for annual periods beginning on or after the 1 s t April, 2020.

(a)

refinancing on a long-term basis of a liability classified as current (see paragraph 72);

(b)

rectification of a breach of a long-term loan arrangement classified as current (see paragraph 74);

(c)

the granting by the lender of a period of grace to rectify a breach of a long-term loan arrangement classified as current (see paragraph 75); and

(d)

settlement of a liability classified as non-current (see paragraph 75A).

139V 58 Disclosure of Accounting Policies , amended paragraphs 7, 10, 114, 117 and 122, added paragraphs 117A�117E and deleted paragraphs 118, 119 and 121. An entity shall apply the amendments to Ind AS 1 for annual reporting periods beginning on or after 1 April 2023.

139W 59 [ Refer Appendix 1 ].

Appendix A

References to matters contained in other Indian Accounting Standards

This Appendix is an integral part of the Ind AS .

This appendix lists the different appendices which are the part of other Indian Accounting Standards and make reference to Ind AS 1.

1 Appendix A, Distributions of Non-cash Assets to Owners, contained in Ind AS 10, Events after the Reporting Period .

2 Appendix A, Changes in Existing Decommissioning, Restoration and Similar Liabilities, contained in Ind AS 16, Property, Plant and Equipment.

3 Appendix B, The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, contained in Ind AS 19, Employee Benefits.

4 Appendix A, Intangible Assets—Web Site Costs, contained in Ind AS 38, Intangible Assets.

5 Appendix D, Extinguishing Financial Liabilities with Equity Instruments contained in Ind AS 109, Financial Instruments.

6 Appendix C, Levies , contained in Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets.

7 Appendix B, Stripping Costs in the Production Phase of a Surface Mine, contained in Ind AS 16, Property, Plant and Equipment.

Appendix 1

Note: This Appendix is not a part of the Indian Accounting Standard. The purpose of this Appendix is only to bring out the major differences, if any, between Indian Accounting Standard (Ind AS) 1 and the corresponding International Accounting Standard (IAS) 1, Presentation of Financial Statements, issued by the International Accounting Standards Board.

Comparison with IAS 1, Presentation of Financial Statements

Notes, amendments & references (65)

# This Ind AS was notified vide G.S.R. 111(E) dated 16t h February, 2015 and was amended vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016, G.S.R. 310(E) dated 28 t h March, 2018, G.S.R. 273(E) dated 30 t h March, 2019, G.S.R. 463(E) dated 24 t h July, 2020, G.S.R. 419(E) dated 18 t h June, 2021 , G.S.R. 242(E) dated 31 s t March, 2023, G.S.R. 492(E) dated 12th August, 2024 and G.S.R. 549(E) dated 13th August. 2025.

1 Inserted vide Notification No. G.S.R. 242(E) dated 31 s t March, 2023.

2 Substituted vide Notification No. G.S.R. 463(E) dated 24 t h July, 2020.

3 Substituted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

4 Sub paragraphs (i) and (j) substituted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

5 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016 and, thereafter, substituted vide Notification No. G.S.R. 242(E) dated 31 s t March, 2023.

6 Substituted vide Notification No. G.S.R. 419(E) dated 18 t h June, 2021.

7 Substituted vide Notification No. G.S.R. 419(E) dated 18 t h June, 2021.

8 Substituted vide Notification No. G.S.R. 419(E) dated 18 t h June, 2021.

9 Substituted vide Notification No. G.S.R. 419(E) dated 18 t h June, 2021.

10 Substituted vide Notification No. G.S.R. 419(E) dated 18 t h June, 2021.

11 Substituted vide Notification No. G.S.R. 419(E) dated 18 t h June, 2021.

12 Inserted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

13 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

14 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016 and, thereafter, substituted vide Notification No. G.S.R. 310(E) dated 28 t h March, 2018.

15 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

16 Inserted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

17 Inserted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

18 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

19 Inserted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

20 Amended vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

21 Substituted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

22 Inserted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

23 Inserted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

24 Amended vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

25 Heading and paragraphs 72A-72B inserted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

26 Substituted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

27 Substituted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

28 Amended vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

29 Substituted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

30 Heading and paragraphs 76A-76ZA inserted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

31 Substituted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

32 Sub-paragraphs (ab) and (ac) inserted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

33 Sub-paragraphs (bb) and (bc) inserted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

34 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

35 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

36 Inserted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

37 Inserted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

38 Substituted vide Notification No. G.S.R. 419(E) dated 18 t h June, 2021.

39 Editorial correction notified vide Notification No. G.S.R. 419(E) dated 18 t h June, 2021.

40 Substituted vide Notification No. G.S.R. 365(E) dated 30t h March, 2016.

41 Substituted vide Notification No. G.S.R. 365(E) dated 30t h March, 2016.

42 Refer Appendix 1. Omitted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

43 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016 and, thereafter, heading and paragraph substituted vide Notification No. G.S.R. 242(E) dated 31 s t March, 2023.

44 Paragraphs 117A-117E inserted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.

45 Refer Appendix 1. Omitted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.

46 Refer Appendix 1. Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016 and, thereafter, omitted vide Notification No. G.S.R. 242(E) dated 31 s t March, 2023.

47 Refer Appendix 1. Omitted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016.

48 Refer Appendix 1. Omitted vide Notification No. G.S.R. 242(E) dated 31 s t March, 2023.

49 Substituted vide Notification No. G.S.R. 365(E) dated 30t h March, 2016 and, thereafter, substituted vide Notification No. G.S.R. 242(E) dated 31 s t March, 2023.

50 Substituted vide Notification No. G.S.R. 273(E) dated 30 t h March, 2019.

51 Heading and paragraphs 139-139N inserted vide Notification No. G.S.R. 310(E) dated 28 t h March, 2018.

* Refer Appendix 1

52 Paragraphs 139O-139Q inserted vide Notification No. G.S.R. 273(E) dated 30 t h March, 2019.

53 Inserted vide Notification No. G.S.R. 463(E) dated 24 t h July, 2020 and thereafter, substituted vide Notification No. G.S.R. 492(E) dated 12th August, 2024.

54 Inserted vide Notification No. G.S.R. 463(E) dated 24 t h July, 2020 and thereafter, substituted vide Notification No. G.S.R. 419(E) dated 18 t h June, 2021.

55 Inserted vide Notification No. G.S.R. 463(E) dated 24 t h July, 2020.

56 Inserted vide Notification No. G.S.R. 242(E) dated 31st March, 2023 and thereafter, substituted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

57 As per the Notification No. G.S.R. 549(E) dated 13th August, 2025, paragraphs 74, 75, 75A and 76 as given in paragraph 139U, are applicable from annual reporting periods beginning on or after the 1st April 2026.

58 Inserted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.

59 Inserted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.

60 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016 and, thereafter, substituted vide Notification No. G.S.R. 242(E) dated 31 s t March, 2023.

61 Substituted vide Notification No. G.S.R. 365(E) dated 30 t h March, 2016 and, thereafter, substituted vide Notification No. G.S.R. 242(E) dated 31 s t March, 2023.

62 Inserted vide Notification No. G.S.R. 310(E) dated 28 t h March, 2018 and, thereafter, substituted vide Notification No. G.S.R. 273(E) dated 30 t h March, 2019, G.S.R. 463(E) dated 24 t h July, 2020 and G.S.R. 419(E) dated 18 t h June, 2021 and G.S.R. 492(E) dated 12th August, 2024.

63 Inserted vide Notification No. G.S.R. 242(E) dated 31st March, 2023 and, thereafter, substituted vide Notification No. G.S.R. 549(E) dated 13th August, 2025.