INDIAN ACCOUNTING STANDARDS 1

PRESENTATION OF FINANCIAL
STATEMENTS
CONTENTS
from paragraph

OBJECTIVE 1
SCOPE 2
DEFINITIONS 7
FINANCIAL STATEMENTS 9
Purpose of financial statements 9
Complete set of financial statements 10
General features 15
STRUCTURE AND CONTENT 47
Introduction 47
Identification of the financial statements 49
Balance Sheet 54
Statement of Profit and Loss 81
Statement of changes in equity 106
Statement of cash flows 111
Notes 112
TRANSITION AND EFFECTIVE DATE 139
APPENDICES
Appendix A- References to matters contained in other
Indian Accounting Standards
Appendix 1- Comparison with IAS 1, Presentation of
Financial Statements
 Ind AS 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.)

Objective
1 This Standard prescribes the basis for presentation of general purpose
financial statements to ensure comparability both with the entity’s
financial statements of previous periods and with the financial
statements of other entities. It sets out overall requirements for the
presentation of financial statements, guidelines for their structu re and
minimum requirements for their content.

Scope
2 An entity shall apply this Standard in preparing and presenting
general purpose financial statements in accordance with Indian
Accounting Standards (Ind ASs).
3 Other Ind ASs set out the recognition, measurement and disclosure
requirements for specific transactions and other events.
4 This Standard does not apply to the structure and content of
condensed interim financial statements prepared in accordance with
Ind AS 34, Interim Financial Reporting. However, paragraphs 15–35
apply to such financial statements. This Standard applies equally to all
entities, including those that present consolidated financial statements
in accordance with Ind AS 110, Consolidated Financial Statements,
and those that present separate financial statements in accordance
with Ind AS 27, Separate Financial Statements.
5 This Standard uses terminology that is suitable for profit-oriented

# This Ind AS was notified vide G.S.R. 111(E) dated 16th February, 2015 and was
amended vide Notification No. G.S.R. 365(E) dated 30th March, 2016, G.S.R. 310(E)
dated 28th March, 2018, G.S.R. 273(E) dated 30th March, 2019, G.S.R. 463(E) dated
24th July, 2020, G.S.R. 419(E) dated 18th June, 2021 and G.S.R. 242(E) dated 31st
March, 2023.
 Ind AS 1, Presentation of Financial Statements

entities, including public sector business entities. If entities with not -

for-profit activities in the private sector or the public sector apply this
Standard, they may need to amend the descriptions used for particular
line items in the financial statements and for the financial statements
themselves.
6 Similarly, entities whose share capital is not equity may need to adapt
the financial statement presentation of members’ interests.

Definitions
7 The following terms are used in this Standard with the meanings
specified:
1Accounting policies are defined in paragraph 5 of Ind AS 8,
Accounting Policies, Changes in Accounting Estimates and Errors,
and the term is used in this Standard with the same meaning.

General purpose financial statements (referred to as ‘financial

statements’) are those intended to meet the needs of users who
are not in a position to require an entity to prepare reports
tailored to their particular information needs.
Impracticable Applying a requirement is impracticable when the
entity cannot apply it after making every reasonable effort to do
so.
Indian Accounting Standards (Ind ASs) are Standards prescribed
under Section 133 of the Companies Act, 2013.
2Material:

Information is material if omitting, misstating or obscuring it

could reasonably be expected to influence decisions that the
primary users of general purpose financial statements make on
the basis of those financial statements, which provide financial
information about a specific reporting entity.
Materiality depends on the nature or magnitude of information, or both.
An entity assesses whether information, either individually or in
combination with other information, is material in the context of its

1
Inserted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.
2
Substituted vide Notification No. G.S.R. 463(E) dated 24th July, 2020.
 Ind AS 1, Presentation of Financial Statements

financial statements taken as a whole.

Information is obscured if it is communicated in a way that would have
a similar effect for primary users of financial statements to omitting or
misstating that information. The following are examples of
circumstances that may result in material information being obscured: -
(a) information regarding a material item, transaction or other event
is disclosed in the financial statements but the language used is
vague or unclear;
(b) information regarding a material item, transaction or other event
is scattered throughout the financial statements;
(c) dissimilar items, transactions or other events are inappropriately
aggregated;
(d) similar items, transactions or other events are inappropriately
disaggregated; and
(e) the understandability of the financial statements is reduced as a
result of material information being hidden by immaterial
information to the extent that a primary user is unable to
determine what information is material.
Assessing whether information could reasonably be expected to
influence decisions made by the primary users of a specific reporting
entity’s general purpose financial statements requires an entity to
consider the characteristics of those users while also considering the
entity’s own circumstances.
Many existing and potential investors, lenders and other creditors
cannot require reporting entities to provide information directly to them
and must rely on general purpose financial statements for much of the
financial information they need. Consequently, they are the primary
users to whom general purpose financial statements are directed.
Financial statements are prepared for users who have a reasonable
knowledge of business and economic activities and who review and
analyse the information diligently. At times, even well-informed and
diligent users may need to seek the aid of an adviser to understand
information about complex economic phenomena.
Notes contain information in addition to that presented in the
balance sheet), statement of profit and loss, statement of changes
 Ind AS 1, Presentation of Financial Statements

in equity and statement of cash flows. Notes provide narrative

descriptions or disaggregations of items presented in those
statements and information about items that do not qualify for
recognition in those statements.
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) reameasurements of defined benefit plans (see 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 from investments in equity instruments
designated at fair value through other comprehensive income in
accordance with paragraph 5.7.5 of Ind AS 109, Financial
Instruments;
(da) gains and losses on financial assets measured at fair value
through other comprehensive income in accordance with
paragraph 4.1.2A of Ind AS 109.
(e) the effective portion of gains and losses on hedging instruments
in a cash flow hedge and the gains and losses on hedging
instruments that hedge investments in equity instruments
measured at fair value through other comprehensive income in
accordance with paragraph 5.7.5 of Ind AS 109 (see Chapter 6
of Ind AS 109);
(f) for particular liabilities designated as at fair value through profit
or loss, the amount of the change in fair value that is attributable
to changes in the liability’s credit risk (see paragraph 5.7.7 of
Ind AS 109);
(g) changes in the value of the time value of options when
separating the intrinsic value and time value of an option
 Ind AS 1, Presentation of Financial Statements

contract and designating as the hedging instrument only the

changes in the intrinsic value (see Chapter 6 of Ind AS 109);
(h) changes in the value of the forward elements of forward
contracts when separating the forward element and spot
element of a forward contract and designating as the hedging
instrument only the changes in the spot element, and changes
in the value of the foreign currency basis spread of a financial
instrument when excluding it from the designation of that
financial instrument as the hedging instrument (see Chapter 6 of
Ind AS 109).
Owners are holders of instruments classified as equity.
Profit or loss is the total of income less expenses, excluding the
components of other comprehensive income.
Reclassification adjustments are amounts reclassified to profit or
loss in the current period that were recognised in other
comprehensive income in the current or previous periods.
Total comprehensive income is the change in equity during a
period resulting from transactions and other events, other than
those changes resulting from transactions with owners in their
capacity as owners.
Total comprehensive income comprises all components of ‘profit or
loss’ and of ‘other comprehensive income’.
8 [Refer Appendix 1]
8A The following terms are described in Ind AS 32, Financial Instruments:
Presentation, and are used in this Standard with the meaning specified
in Ind AS 32:
(a) puttable financial instrument classified as an equity instrument
(described in paragraphs 16A and 16B of Ind AS 32)
(b) an instrument that imposes on the entity an obligation to deliver
to another party a pro rata share of the net assets of the entity
only on liquidation and is classified as an equity instrument
(described in paragraphs 16C and 16D of Ind AS 32).
 Ind AS 1, Presentation of Financial Statements

Financial statements
Purpose of financial statements
9 Financial statements are a structured representation of the financial
position and financial performance of an entity. The objective of
financial statements is to provide information about the financial
position, financial performance and cash flows of an entity that is
useful to a wide range of users in making economic decisions.
Financial statements also show the results of the management’s
stewardship of the resources entrusted to it. To meet this objective,
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; and
(f) cash flows.
This information, along with other information in the notes, assists
users of financial statements in predicting the entity’s future cash flows
and, in particular, their timing and certainty.

Complete set of financial statements

10 3A complete set of financial statements comprises:
(a) a balance sheet as at the end of the period ;
(b) a statement of profit and loss for the period;
(c) Statement of changes in equity for the period;
(d) a statement of cash flows for the period;
(e) notes, comprising material accounting policy information
and other explanatory information;
(ea) comparative information in respect of the preceding period

3 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016 and, thereafter,
substituted vide Notification No. G.S.R. 242(E) dated 31 st March, 2023.
 Ind AS 1, Presentation of Financial Statements

as specified in paragraphs 38 and 38A; and

(f) a balance sheet as at the beginning of the preceding period
when an entity applies an accounting policy retrospectively
or makes a retrospective restatement of items in its
financial statements, or when it reclassifies items in its
financial statements in accordance with paragraphs 40A–
40D.
10A An entity shall present a single statement of profit and loss, with
profit or loss and other comprehensive income presented in two
sections. The sections shall be presented together, with the profit
or loss section presented first followed directly by the other
comprehensive income section.
11 An entity shall present with equal prominence all of the financial
statements in a complete set of financial statements.
12 [Refer Appendix 1]
13 Many entities present, outside the financial statements, a financial
review by management that describes and explains the main features
of the entity’s financial performance and financial position, and the
principal uncertainties it faces. Such a report may include a review of:
(a) the main factors and influences determining financial
performance, including changes in the environment in which the
entity operates, the entity’s response to those changes and their
effect, and the entity’s policy for investment to maintain and
enhance financial performance, including its dividend policy;
(b) the entity’s sources of funding and its targeted ratio of liabilities
to equity; and
(c) the entity’s resources not recognised in the balance sheet in
accordance with Ind ASs.
14 Many entities also present, outside the financial statements, reports
and statements such as environmental reports and value added
statements, particularly in industries in which environmental factors
are significant and when employees are regarded as an important user
group. Reports and statements presented outside financial statements
are outside the scope of Ind ASs.
 Ind AS 1, Presentation of Financial Statements

General features
Presentation of True and Fair View and compliance with Ind ASs
15 4Financial statements shall present a true and fair view of the
financial position, financial performance and cash flows of an
entity. Presentation of true and fair view requires the faithful
representation of the effects of transactions, other events and
conditions in accordance with the definitions and recognition
criteria for assets, liabilities, income and expenses set out in the
Conceptual Framework for Financial Reporting under Indian
Accounting Standards (Conceptual Framework) issued by the
Institute of Chartered Accountants of India (ICAI). The application
of Ind ASs, with additional disclosure when necessary, is
presumed to result in financial statements that present a true and
fair view.
16 An entity whose financial statements comply with Ind ASs shall
make an explicit and unreserved statement of such compliance in
the notes. An entity shall not describe financial statements as
complying with Ind ASs unless they comply with all the
requirements of Ind ASs.
17 In virtually all circumstances, presentation of a true and fair view is
achieved by compliance with applicable Ind ASs. Presentation of a
true and fair view also requires an entity:
(a) to select and apply accounting policies in accordance with Ind
AS 8, Accounting Policies, Changes in Accounting Estimates
and Errors. Ind AS 8 sets out a hierarchy of authoritative
guidance that management considers in the absence of an Ind
AS that specifically applies to an item.
(b) to present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information.
(c) to provide additional disclosures when compliance with the
specific requirements in Ind ASs is insufficient to enable users
to understand the impact of particular transactions, other events
and conditions on the entity’s financial position and financial

4
Substituted vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 1, Presentation of Financial Statements

performance.
18 An entity cannot rectify inappropriate accounting policies either
by disclosure of the accounting policies used or by notes or
explanatory material.
19 4In the extremely rare circumstances in which management
concludes that compliance with a requirement in an Ind AS would
be so misleading that it would conflict with the objective of
financial statements set out in the Conceptual Framework, the
entity shall depart from that requirement in the manner set out in
paragraph 20 if the relevant regulatory framework requires, or
otherwise does not prohibit, such a departure.
20 When an entity departs from a requirement of an Ind AS in
accordance with paragraph 19, it shall disclose:
(a) that management has concluded that the financial
statements present a true and fair view of the entity’s
financial position, financial performance and cash flows;
(b) that it has complied with applicable Ind ASs, except that it
has departed from a particular requirement to present a true
and fair view;
(c) 5the title of the Ind AS from which the entity has departed,
the nature of the departure, including the treatment that the
Ind AS would require, the reason why that treatment would
be so misleading in the circumstances that it would conflict
with the objective of financial statements set out in the
Conceptual Framework, and the treatment adopted; and
(d) for each period presented, the financial effect of the
departure on each item in the financial statements that
would have been reported in complying with the
requirement.
21 When an entity has departed from a requirement of an Ind AS in a
prior period, and that departure affects the amounts recognised in
the financial statements for the current period, it shall make the
disclosures set out in paragraph 20(c) and (d).

4
Substituted vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
5
Substituted vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 1, Presentation of Financial Statements

22 Paragraph 21 applies, for example, when an entity departed in a prior

period from a requirement in an Ind AS for the measurement of assets
or liabilities and that departure affects the measurement of changes in
assets and liabilities recognised in the current period’s financial
statements.
23 6In the extremely rare circumstances in which management
concludes that compliance with a requirement in an Ind AS would
be so misleading that it would conflict with the objective of
financial statements set out in the Conceptual Framework, but the
relevant regulatory framework prohibits departure from the
requirement, the entity shall, to the maximum extent possible,
reduce the perceived misleading aspects of compliance by
disclosing:
(a) the title of the Ind AS in question, the nature of the
requirement, and the reason why management has
concluded that complying with that requirement is so
misleading in the circumstances that it conflicts with the
objective of financial statements set out in the Conceptual
Framework; and
(b) for each period presented, the adjustments to each item in
the financial statements that management has concluded
would be necessary to present a true and fair view.
24 7For the purpose of paragraphs 19–23, an item of information would
conflict with the objective of financial statements when it does not
represent faithfully the transactions, other events and conditions that it
either purports to represent or could reasonably be expected to
represent and, consequently, it would be likely to influence economic
decisions made by users of financial statements. When assessing
whether complying with a specific requirement in an Ind AS would be
so misleading that it would conflict with the objective of financial
statements set out in the Conceptual Framework, management
considers:
(a) why the objective of financial statements is not achieved in the
particular circumstances; and

6
Substituted vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
7
Substituted vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 1, Presentation of Financial Statements

(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 an
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, management
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.
 Ind AS 1, Presentation of Financial Statements

28 8When 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 classes
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 9When 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 10Some 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

8
Substituted vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
9Inserted vide Notification No. G.S.R. 365(E) dated 30th March, 2016.
10 Substituted vide Notification No. G.S.R. 365(E) dated 30 th March, 2016.
 Ind AS 1, Presentation of Financial Statements

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 understand 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 11Ind 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. For
example:
(a) an entity presents gains and losses on the disposal of non-
current assets, including investments and operating assets, by
deducting from the amount of consideration on disposal the
carrying amount of the asset and related selling expenses; and
(b) an entity may net expenditure related to a provision that is
recognised in accordance with Ind AS 37, Provisions,
Contingent Liabilities and Contingent Assets, and reimbursed

11 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016 and, thereafter,
substituted vide Notification No. G.S.R. 310(E) dated 28 th March, 2018.
 Ind AS 1, Presentation of Financial Statements

under a contractual arrangement with a third party (for example,

a supplier’s warranty agreement) against the related
reimbursement.
35 In addition, an entity presents on a net basis gains and losses arising
from a group of similar transactions, for example, foreign exchange
gains and losses or gains and losses arising on financial instruments
held for trading. However, an entity presents such gains and losses
separately if they are material.

Frequency of reporting
36 An entity shall present a complete set of financial statements
(including comparative information) at least annually. When an
entity changes the end of its reporting period and presents
financial statements for a period longer or shorter than one year,
an entity shall disclose, in addition to the period covered by the
financial statements:
(a) the reason for using a longer or shorter period, and
(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
 Ind AS 1, Presentation of Financial Statements

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 the 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 to 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:
(a) it applies an accounting policy retrospectively, makes a
retrospective restatement of items in its financial
statements or reclassifies items in its financial statements;
and
(b) the retrospective application, retrospective restatement or
the reclassification has a material effect on the information
in the balance sheet at the beginning of the preceding
period.
 Ind AS 1, Presentation of Financial Statements

40B In the circumstances described in paragraph 40A, an entity shall

present three balance sheets as at:
(a) the end of the current period;
(b) the end of the preceding period; and
(c) the beginning of the preceding period.
40C When an entity is required to present an additional balance sheet in
accordance with paragraph 40A, it must disclose the information
required by paragraphs 41– 44 and Ind AS 8. However, it need not
present the related notes to the opening balance sheet as at the
beginning of the preceding period.
40D The date of that opening balance sheet shall be as at the beginning of
the preceding period regardless of whether an entity’s financial
statements present comparative information for earlier periods (as
permitted in paragraph 38C).
41 If an entity changes the presentation or classification of items in
its financial statements, it shall reclassify comparative amounts
unless reclassification is impracticable. When an entity
reclassifies comparative amounts, it shall disclose (including as
at the beginning of the preceding period):
(a) the nature of the reclassification;
(b) the amount of each item or class of items that is
reclassified; and
(c) the reason for the reclassification.
42 When it is impracticable to reclassify comparative amounts, an
entity shall disclose:
(a) the reason for not reclassifying the amounts, and
(b) the nature of the adjustments that would have been made if
the amounts had been reclassified.
43 Enhancing the inter-period comparability of information assists users
in making economic decisions, especially by allowing the assessment
of trends in financial information for predictive purposes. In some
circumstances, it is impracticable to reclassify comparative information
for a particular prior period to achieve comparability with the current
period. For example, an entity may not have collected data in the prior
 Ind AS 1, Presentation of Financial Statements

period(s) in a way that allows reclassification, and it may be

impracticable to recreate the information.
44 Ind AS 8 sets out the adjustments to comparative information required
when an entity changes an accounting policy or corrects an error.

Consistency of presentation
45 An entity shall retain the presentation and classification of items
in the financial statements from one period to the next unless:
(a) it is apparent, following a significant change in the nature
of the entity’s operations or a review of its financial
statements, that another presentation or classification
would be more appropriate having regard to the criteria for
the selection and application of accounting policies in Ind
AS 8; or
(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
 Ind AS 1, Presentation of Financial Statements

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:
(a) the name of the reporting entity or other means of
identification, and any change in that information from the
end of the preceding reporting period;
(b) whether the financial statements are of an individual entity
or a group of entities;
(c) the date of the end of the reporting period or the period
covered by the set of financial statements or notes;
(d) the presentation currency, as defined in Ind AS 21; and
(e) the level of rounding used in presenting amounts in the
financial statements.
52 An entity meets the requirements in paragraph 51 by presenting
appropriate headings for pages, statements, notes, columns and the
like. Judgement is required in determining the best way of presenting
such information. For example, when an entity presents the financial
statements electronically, separate pages are not always used; an
entity then presents the above items to ensure that the information
included in the financial statements can be understood.
53 An entity often makes financial statements more understandable by
presenting information in thousands, lakhs, millions or crores of units
 Ind AS 1, Presentation of Financial Statements

of the presentation currency. This is acceptable as long as the entity

discloses the level of rounding and does not omit material information.

Balance Sheet
Information to be presented in the balance sheet
54 12The balance sheet shall include line items that present the
following amounts:
(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 within the scope of Ind AS 41 Agriculture;
(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 classified as held for sale in
accordance with Ind AS 105, Non-current Assets Held for
Sale and Discontinued Operations;
(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, Income Taxes;
(o) deferred tax liabilities and deferred tax assets, as defined in
Ind AS 12;

12 Substituted vide Notification No. G.S.R. 365(E) dated 30 th March, 2016.

 Ind AS 1, Presentation of Financial Statements

(p) liabilities included in disposal groups classified as held for

sale in accordance with Ind AS 105;
(q) non-controlling interests, presented within equity; and
(r) issued capital and reserves attributable to owners of the
parent.
55 13An entity shall present additional line items (including by
disaggregating the line items listed in paragraph 54), headings
and subtotals in the balance sheet when such presentation is
relevant to an understanding of the entity’s financial position.
55A 14When an entity presents subtotals in accordance with paragraph 55,
those subtotals shall:
(a) be comprised of line items made up of amounts recognised and
measured in accordance with Ind AS;
(b) be presented and labelled in a manner that makes the line items
that constitute the subtotal clear and understandable;
(c) be consistent from period to period, in accordance with
paragraph 45; and
(d) not be displayed with more prominence than the subtotals and
totals required in Ind AS for the balance sheet.
56 When an entity presents current and non-current assets, and
current and non-current liabilities, as separate classifications in
its balance sheet, it shall not classify deferred tax assets
(liabilities) as current assets (liabilities).
57 This Standard does not prescribe the order or format in which an entity
presents items. Paragraph 54 simply lists items that are sufficiently
different in nature or function to warrant separate presentation in the
balance sheet. In addition:
(a) line items are included when the size, nature or function of an
item or aggregation of similar items is such that separate
presentation is relevant to an understanding of the entity’s
financial position; and

13 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016.
14 Inserted vide Notification No. G.S.R. 365(E) dated 30th March, 2016.
 Ind AS 1, Presentation of Financial Statements

(b) the descriptions used and the ordering of items or aggregation

of similar items may be amended according to the nature of the
entity and its transactions, to provide information that is relevant
to an understanding of the entity’s financial position. For
example, a financial institution may amend the above
descriptions to provide information that is relevant to the
operations of a financial institution.
58 An entity makes the judgement about whether to present additional
items separately on the basis of an assessment of:
(a) the nature and liquidity of assets;
(b) the function of assets within the entity; and
(c) the amounts, nature and timing of liabilities.
59 The use of different measurement bases for different classes of assets
suggests that their nature or function differs and, therefore, that an
entity presents them as separate line items. For example, different
classes of property, plant and equipment can be carried at cost or at
revalued amounts in accordance with Ind AS 16.

Current/non-current distinction
60 An entity shall present current and non-current assets, and
current and non-current liabilities, as separate classifications in
its balance sheet in accordance with paragraphs 66–76 except
when a presentation based on liquidity provides information that
is reliable and more relevant. When that exception applies, an
entity shall present all assets and liabilities in order of liquidity.
61 Whichever method of presentation is adopted, an entity shall
disclose the amount expected to be recovered or settled after
more than twelve months for each asset and liability line item that
combines amounts expected to be recovered or settled:
(a) no more than twelve months after the reporting period, and
(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
 Ind AS 1, Presentation of Financial Statements

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 inventories
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:
(a) it expects to realise the asset, or intends to sell or consume
it, in its normal operating cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realise the asset within twelve months after the
reporting period; or
(d) the asset is cash or a cash equivalent (as defined in Ind AS
7) unless the asset is restricted from being exchanged or
 Ind AS 1, Presentation of Financial Statements

used to settle a liability for at least twelve months after the

reporting period.
An entity shall classify all other assets as non-current.
67 This Standard uses the term ‘non-current’ to include tangible,
intangible and financial assets of a long-term nature. It does not
prohibit the use of alternative descriptions as long as the meaning is
clear.
68 The operating cycle of an entity is the time between the acquisition of
assets for processing and their realisation in cash or cash equivalents.
When the entity’s normal operating cycle is not clearly identifiable, it is
assumed to be twelve months. Current assets include assets (such as
inventories and trade receivables) that are sold, consumed or realised
as part of the normal operating cycle even when they are not expected
to be realised within twelve months after the reporting period. Current
assets also include assets held primarily for the purpose of trading
(examples include some financial assets that meet the definition of
held for trading in Ind AS 109) and the current portion of non-current
financial assets.

Current liabilities
69 An entity shall classify a liability as current when:
(a) it expects to settle the liability in its normal operating cycle;
(b) it holds the liability primarily for the purpose of trading;
(c) the liability is due to be settled within twelve months after
the reporting period; or
(d) it does not have an unconditional right to defer settlement
of the liability for at least twelve months after the reporting
period (see paragraph 73). Terms of a liability that could, at
the option of the counterparty, result in its settlement by
the issue of equity instruments do not affect its
classification.
An entity shall classify all other liabilities as non-current.
70 Some current liabilities, such as trade payables and some accruals for
employee and other operating costs, are part of the working capital
used in the entity’s normal operating cycle. An entity classifies such
 Ind AS 1, Presentation of Financial Statements

operating items as current liabilities even if they are due to be settled

more than twelve months after the reporting period. The same normal
operating cycle applies to the classification of an entity’s assets and
liabilities. When the entity’s normal operating cycle is not clearly
identifiable, it is assumed to be twelve months.
71 Other current liabilities are not settled as part of the normal operating
cycle, but are due for settlement within twelve months after the
reporting period or held primarily for the purpose of trading. Examples
are some financial liabilities that meet the definition of held for trading
in Ind AS 109, bank overdrafts, and the current portion of non-current
financial liabilities, dividends payable, income taxes and other non-
trade payables. Financial liabilities that provide financing on a long -
term basis (ie are not part of the working capital used in the entity’s
normal operating cycle) and are not due for settlement within twelve
months after the reporting period are non-current liabilities, subject to
paragraphs 74 and 75.
72 An entity classifies its financial liabilities as current when they are due
to be settled within twelve months after the reporting period, even if:
(a) the original term was for a period longer than twelve months,
and
(b) an agreement to refinance, or to reschedule payments, on a
long-term basis is completed after the reporting period and
before the financial statements are approved for issue.
73 If an entity expects, and has the discretion, to refinance or 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. However, when
refinancing or rolling over the obligation is not at the discretion of the
entity (for example, there is no arrangement for refinancing), the entity
does not consider the potential to refinance the obligation and
classifies the obligation as current.
74 Where there is a breach of a material provision 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.
 Ind AS 1, Presentation of Financial Statements

75 However, 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.
76 [Refer Appendix 1]
Information to be presented either in the balance sheet or in the
notes
77 An entity shall disclose, either in the balance sheet or in the
notes, further sub-classifications of the line items presented,
classified in a manner appropriate to the entity’s operations.
78 The detail provided in subclassifications depends on the requirements
of Ind ASs and on the size, nature and function of the amounts
involved. An entity also uses the factors set out in paragraph 58 to
decide the basis of subclassification. The disclosures vary for each
item, for example:
(a) items of property, plant and equipment are disaggregated into
classes in accordance with Ind AS 16;
(b) receivables are disaggregated into amounts receivable from
trade customers, receivables from related parties, prepayments
and other amounts;
(c) inventories are disaggregated, in accordance with Ind AS 2,
Inventories, into classifications such as merchandise, production
supplies, materials, work in progress and finished goods;
(d) provisions are disaggregated into provisions for employee
benefits and other items; and
(e) equity capital and reserves are disaggregated into various
classes, such as paid-in capital, share premium and reserves.
79 An entity shall disclose the following, either in the balance sheet
or the statement of changes in equity, or in the notes:
(a) for each class of share capital:
(i) the number of shares authorised;
(ii) the number of shares issued and fully paid, and
issued but not fully paid;
 Ind AS 1, Presentation of Financial Statements

(iii) par value per share, or that the shares have no par
value;
(iv) a reconciliation of the number of shares outstanding
at the beginning and at the end of the period;
(v) the rights, preferences and restrictions attaching to
that class including restrictions on the distribution of
dividends and the repayment of capital;
(vi) shares in the entity held by the entity or by its
subsidiaries or associates; and
(vii) shares reserved for issue under options and
contracts for the sale of shares, including terms and
amounts; and
(b) a description of the nature and purpose of each reserve
within equity.
80 An entity whose capital is not limited by shares eg, a company
limited by guarantee, shall disclose information equivalent to that
required by paragraph 79(a), showing changes during the period
in each category of equity interest, and the rights, preferences
and restrictions attaching to each category of equity interest.
80A If an entity has reclassified
(a) a puttable financial instrument classified as an equity
instrument, or
(b) an instrument that imposes on the entity an obligation to
deliver to another party a pro rata share of the net assets of
the entity only on liquidation and is classified as an equity
instrument
between financial liabilities and equity, it shall disclose the
amount reclassified into and out of each category (financial
liabilities or equity), and the timing and reason for that
reclassification.

Statement of Profit and Loss

81 [Refer Appendix 1]
81A The statement of profit and loss shall present, in addition to the
 Ind AS 1, Presentation of Financial Statements

profit or loss and other comprehensive income sections:

(a) profit or loss;
(b) total other comprehensive income;
(c) comprehensive income for the period, being the total of
profit or loss and other comprehensive income.
81B An entity shall present the following items, in addition to the
profit or loss and other comprehensive income sections, as
allocation of profit or loss and other comprehensive income for
the period:
(a) profit or loss for the period attributable to:
(i) non-controlling interests, and
(ii) owners of the parent.
(b) comprehensive income for the period attributable to:
(i) non-controlling interests, and
(ii) owners of the parent.
Information to be presented in the profit or loss section of the
statement of profit and loss
82 In addition to items required by other Ind ASs, the profit or loss
section of the statement of profit and loss shall include line items
that present the following amounts for the period:
(a) revenue, presenting separately interest revenue calculated
using the effective interest method;
(aa) gains and losses arising from the derecognition of financial
assets measured at amortised cost;
(b) finance costs;
(ba) impairment losses (including reversals of impairment
losses or impairment gains) determined in accordance with
Section 5.5 of Ind AS 109;
(c) share of the profit or loss of associates and joint ventures
accounted for using the equity method;
(ca) if a financial asset is reclassified out of the amortised cost
 Ind AS 1, Presentation of Financial Statements

measurement category so that it is measured at fair value

through profit or loss, any gain or loss arising from a
difference between the previous amortised cost of the
financial asset and its fair value at the reclassification date
(as defined in Ind AS 109);
(cb) if a financial asset is reclassified out of the fair value
through other comprehensive income measurement
category so that it is measured at fair value through profit
or loss, any cumulative gain or loss previously recognised
in other comprehensive income that is reclassified to profit
or loss;
(d) tax expense;
(e) [Refer Appendix 1]
(ea) a single amount for the total of discontinued operations
(see Ind AS 105).
(f)-(i) [Refer Appendix 1]

Information to be presented in the other comprehensive income

section
82A 15The other comprehensive income section shall present line
items for the amounts for the period of:
(a) items of other comprehensive income (excluding amounts
in paragraph (b)), classified by nature and grouped into
those that, in accordance with other Ind ASs:
(i) will not be reclassified subsequently to profit or loss;
and
(ii) will be reclassified subsequently to profit or loss
when specific conditions are met.
(b) the share of the other comprehensive income of associates
and joint ventures accounted for using the equity method,
separated into the share of items that, in accordance with
other Ind ASs:
(i) will not be reclassified subsequently to profit or loss;
and

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

 Ind AS 1, Presentation of Financial Statements

(ii) will be reclassified subsequently to profit or loss

when specific conditions are met.
83 [Refer Appendix 1]
84 [Refer Appendix 1]
85 16An entity shall present additional line items (including by
disaggregating the line items listed in paragraph 82), headings
and subtotals in the statement of profit and loss, when such
presentation is relevant to an understanding of the entity’s
financial performance.
85A 17When an entity presents subtotals in accordance with paragraph 85,
those subtotals shall:
(a) be comprised of line items made up of amounts recognised and
measured in accordance with Ind AS;
(b) be presented and labelled in a manner that makes the line items
that constitute the subtotal clear and understandable;
(c) be consistent from period to period, in accordance with
paragraph 45; and
(d) not be displayed with more prominence than the subtotals and
totals required in Ind AS for the statement of profit and loss.
85B 18An 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

16 Substituted vide Notification No. G.S.R. 365(E) dated 30 th March, 2016.

17 Inserted vide Notification No. G.S.R. 365(E) dated 30 th March, 2016.

18 Inserted vide Notification No. G.S.R. 365(E) dated 30 th March, 2016.

 Ind AS 1, Presentation of Financial Statements

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 19Some 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
(b) before related tax effects with one amount shown for the
aggregate amount of income tax relating to those items.
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

19
Substituted vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 1, Presentation of Financial Statements

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 20Reclassification 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

20
Editorial correction notified vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
 Ind AS 1, Presentation of Financial Statements

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:
(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) discontinued operations;
(f) litigation settlements; and
(g) other reversals of provisions.
99 An entity shall present an analysis of expenses recognised in
profit or loss using a classification based on the nature of
expense method.
100 Entities are encouraged to present the analysis in paragraph 99 in the
statement of profit and loss.
101 Expenses are subclassified to highlight components of financial
performance that may differ in terms of frequency, potential for gain or
loss and predictability. This analysis is provided in the form as
described in paragraph 102.
102 In the analysis based on the ‘nature of expense’ method, an entity
aggregates expenses within profit or loss according to their nature (for
 Ind AS 1, Presentation of Financial Statements

example, depreciation, purchases of materials, transport costs,

employee benefits and advertising costs), and does not reallocate
them among functions within the entity. This method is simple to apply
because no allocations of expenses to functional classifications are
necessary. An example of a classification using the nature of expense
method is as follows:
Revenue X
Other income X
Changes in inventories of finished goods
and work in progress X
Raw materials and consumables used X
Employee benefits expense X
Depreciation and amortisation expense X
Other expenses X
Total expenses (X)
Profit before tax X
103 [Refer Appendix 1]
104 [Refer Appendix 1]
105 [Refer Appendix 1]

Statement of changes in equity

Information to be presented in the statement of changes in equity
106 An entity shall present a statement of changes in equity as
required by paragraph 10. The statement of changes in equity
includes the following information:
(a) total comprehensive income for the period, showing
separately the total amounts attributable to owners of the
parent and to non-controlling interests;
(b) for each component of equity, the effects of retrospective
application or retrospective restatement recognised in
accordance with Ind AS 8;
(c) [Refer Appendix 1]
 Ind AS 1, Presentation of Financial Statements

(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.
 Ind AS 1, Presentation of Financial Statements

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:
(a) present information about the basis of preparation of the
financial statements and the specific accounting policies
used in accordance with paragraphs 117–124;
(b) disclose the information required by Ind ASs that is not
presented elsewhere in the financial statements; and
(c) provide information that is not presented elsewhere in the
financial statements, but is relevant to an understanding of
any of them.
113 21An entity shall present notes in a systematic manner. In
determining a systematic manner, the entity shall consider the
effect on the understandability and comparability of its financial

21 Substituted vide Notification No. G.S.R. 365(E) dated 30 th March, 2016.

 Ind AS 1, Presentation of Financial Statements

statements. An entity shall cross-reference each item in the

balance sheet and in the statement of profit and loss, and in the
statements of changes in equity and of cash flows to any related
information in the notes.
114 22Examples of systematic ordering or grouping of the notes include:
(a) giving prominence to the areas of its activities that the entity
considers to be most relevant to an understanding of its
financial performance and financial position, such as grouping
together information about particular operating activities;
(b) grouping together information about items measured similarly
such as assets measured at fair value; or
(c) following the order of the line items in the statement of profit and
loss and the balance sheet, such as:
(i) statement of compliance with Ind ASs (see paragraph
16);
(ii) material accounting policy information (see paragraph
117);
(iii) supporting information for items presented in the balance
sheet, and in the statement of profit and loss, and in the
statements of changes in equity and of cash flows, in the
order in which each statement and each line item is
presented; and
(iv) other disclosures, including:
(1) contingent liabilities (see Ind AS 37) and
unrecognised contractual commitments; and
(2) non-financial disclosures, eg the entity’s financial
risk management objectives and policies (see Ind
AS 107).
115 23Omitted

116 An entity may present notes providing information about the basis of
preparation of the financial statements and specific accounting policies

22 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016 and thereafter,
substituted vide Notification No. G.S.R. 242(E) dated 31 st March, 2023.
23 Refer Appendix 1. Omitted vide Notification No. G.S.R. 365(E) dated 30th March, 2016.
 Ind AS 1, Presentation of Financial Statements

as a separate section of the financial statements.

Disclosure of accounting policy information

117 24An 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 25Accounting 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

24 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016 and, thereafter,
heading and paragraph substituted vide Notification No. G.S.R. 242(E) dated 31st
March, 2023.
25
Paragraphs 117A-117E inserted vide Notification No. G.S.R. 242(E) dated 31st March,
2023.
 Ind AS 1, Presentation of Financial Statements

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 26Omitted

119 27Omitted

120 28Omitted

121 29Omitted

122 30An 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.

26 Refer Appendix 1. Omitted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.
27 Refer Appendix 1. Substituted vide Notification No. G.S.R. 365(E) dated 30th March,
2016 and, thereafter, omitted vide Notification No. G.S.R. 242(E) dated 31st March,
2023.
28 Refer Appendix 1. Omitted vide Notification No. G.S.R. 365(E) dated 30th March, 2016.
29 Refer Appendix 1. Omitted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.
30 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016 and, thereafter,
substituted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.
 Ind AS 1, Presentation of 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) 31when 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 entity. 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.

31
Substituted vide Notification No. G.S.R. 273(E) dated 30 th March, 2019.
 Ind AS 1, Presentation of Financial Statements

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
 Ind AS 1, Presentation of Financial Statements

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.
 Ind AS 1, Presentation of Financial Statements

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
 Ind AS 1, Presentation of Financial Statements

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:
(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
(b) the amount of any cumulative preference dividends not
recognised.
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 length
of its life.
 Ind AS 1, Presentation of Financial Statements

32 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.
139O33 *

139P *

32 Heading and paragraphs 139-139N inserted vide Notification No. G.S.R. 310(E) dated
28th March, 2018.
* Refer Appendix 1
33Paragraphs 139O-139Q inserted vide Notification No. G.S.R. 273(E) dated 30th March,
2019.
* Refer Appendix 1
 Ind AS 1, Presentation of Financial Statements

139Q Ind AS 116, Leases, amended paragraph 123. An entity shall apply
that amendment when it applies Ind AS 116.
139R34 [Refer Appendix 1]
139S 35Amendments 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 st 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 36Definition 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
1st April, 2020.
139U 37[Refer Appendix 1]
139V 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.

34
Inserted vide Notification No. G.S.R. 463(E) dated 24 th July, 2020.
35
Inserted vide Notification No. G.S.R. 463(E) dated 24 th July, 2020 and thereafter,
substituted vide Notification No. G.S.R. 419(E) dated 18th June, 2021.
36
Inserted vide Notification No. G.S.R. 463(E) dated 24 th July, 2020.
37
Paragraphs 139U-139V inserted vide Notification No. G.S.R. 242(E) dated 31st March,
2023.
 Ind AS 1, Presentation of Financial Statements

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
1. With regard to preparation of Statement of profit and loss, International
Accounting Standard (IAS) 1, Presentation of Financial Statements,
provides an option either to follow the single statement approach or to
follow the two statement approach. Paragraph 10A of IAS 1 provides
that an entity may present a single statement of profit or loss and other
comprehensive income, with profit or loss and other comprehensive
income presented in two sections or an entity may present the profit or
loss section in a separate statement of profit or loss which shall
immediately precede the statement presenting comprehensive income,
which shall begin with profit or loss. Ind AS 1 allows only the single
statement approach. Accordingly paragraph 10A has been modified.
2. Different terminology is used in Ind AS 1 eg, the term ‘balance sheet’
is used instead of ‘Statement of financial position’ and ‘Statement of
Profit and Loss’ is used instead of ‘Statement of profit and loss and
other comprehensive income’. The words ‘approval of the financial
statements for issue’ have been used instead of ‘authorisation of the
financial statements for issue’ in the context of financial statements
considered for the purpose of events after the reporting period. The
words ‘true and fair view’ have been used instead of ‘fair presentation’.
3. Paragraph 8 of IAS 1 gives the option to individual entities to follow
different terminology for the titles of financial statements. Ind AS 1 is
changed to remove alternatives by giving one terminology to be used
by all entities. However, paragraph number 8 has been retained in Ind
AS 1 to maintain consistency with paragraph numbers of IAS 1. Similar
changes has been made in paragraph 10 also.
4. Paragraph 37 of IAS 1 permits the periodicity, for example, of 52
weeks for preparation of financial statements. As Ind AS 1 does not
 Ind AS 1, Presentation of Financial Statements

permit it, the same is deleted. However, paragraph number 37 has

been retained in Ind AS 1 to maintain consistency with paragraph
numbers of IAS 1.
5. Paragraph 99 of IAS 1 requires an entity to present an analysis of
expenses recognised in profit or loss using a classification based on
either their nature or their function within the equity. Ind AS 1 requires
only nature-wise classification of expenses. In IAS 1 the following
paragraphs are with reference to function-wise classification of
expense. In order to maintain consistency with paragraph numbers of
IAS 1, the paragraph numbers are retained in Ind AS 1:
(i) Paragraph 103
(ii) Paragraph 104
(iii) Paragraph 105
6. 38Followingparagraph numbers appear as ‘Deleted’ in IAS 1. In order
to maintain consistency with paragraph numbers of IAS 1, the
paragraph numbers are retained in Ind AS 1.
(i) paragraph 12
(ii) paragraphs 39-40
(iii) paragraph 81
(iv) paragraph 82(e)
(v) paragraphs 82(f)-(i)
(vi) paragraphs 83-84
(vii) paragraph 106(c)
(viii) paragraph 123(a)
(ix) paragraph 115
(x) paragraphs 118-121
7. Paragraph 29 and 31 dealing with materiality and aggregation has
been modified to include words ‘except when required by law’.
8. Paragraph 106(d)(iv) of Ind AS 1 dealing with disclosures regarding

38 Substituted vide Notification No. G.S.R. 365(E) dated 30th March, 2016 and, thereafter,
substituted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.
 Ind AS 1, Presentation of Financial Statements

reconciliation between the carrying amount at the beginning and the

end of the period for each component of equity, has been amended to
include disclosure regarding recognition of bargain purchase gain
arising on business combination in line with treatment prescribed in
this regard in Ind AS 103.
9. Paragraph 74 has been modified to clarify that long term loan
arrangement need not be classified as current on account of breach of
a material provision, for which the lender has agreed to waive before
the approval of financial statements for issue. Consequential to this
Paragraph 76 has been deleted.
10. 39 Paragraphs 139 to 139M and 139O-139P related to Transition and
Effective Date have not been included in Ind AS 1 as these are not
relevant in Indian context. Paragraph 139R relates to IFRS 17, Insurance
Contracts, for which corresponding Ind AS is under formulation. However,
in order to maintain consistency with paragraph numbers of IAS 1, these
paragraph numbers are retained in Ind AS 1.
11. 40Paragraph 139U of IAS 1 related to effective date of Amendments to IAS
1: Classification of Liabilities as Current or Non-current has not been
included in Ind AS 1 as the corresponding amendments to Ind AS 1 have
not been issued or notified. However, in order to maintain consistency
with paragraph numbers of IAS 1, the paragraph number is retained in Ind
AS 1.

39 Inserted vide Notification No. G.S.R. 310(E) dated 28th March, 2018 and, thereafter,
substituted vide Notification No. G.S.R. 273(E) dated 30th March, 2019, G.S.R. 463(E)
dated 24 th July, 2020 and G.S.R. 419(E) dated 18th June, 2021.
40
Inserted vide Notification No. G.S.R. 242(E) dated 31st March, 2023.