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Ind AS 1: Presentation of Financial Statements


Ind AS 1 is a basic standard, which prescribes the overall requirements for the presentation of general purpose financial statements, i.e. components of financial statements, like, balance sheet, statement of profit and loss, statement of cash flows and notes comprising significant accounting policies, etc. Further, the standard prescribes the minimum disclosures that are to be made in the financial statements and explains the general features of the financial information. The presentation requirements specified in the standard are supplemented by the recognition, measurement and disclosure requirements set out in other Ind AS for specific transactions and other events.

This standard determines the basis for the presentation of general purpose financial statements to ensure equivalence:

  • With the entity’s financial statements of preceding periods
  • Financial statements of other entities.

It sets out general requirements for the presentation of financial statements, guidelines for their structure and minimum requirements of their content.


  • This standard claims to all types of entities, including those that present:
  • Consolidated financial statements underInd AS 110 consolidated financial statements; and
  • Financial statements that are separated underInd AS 27.
  • This standard does not apply to the structure and content of compressed interim financial statements prepared underInd AS 35 except for para 15 to 35 of Ind AS 1.
  • This standard uses expressions that are suitable for profit-oriented entities, including public sector business entities.
  • Suppose entities with not for profit activities in the private sector or the public sector apply this standard. In that case, they may need to amend the descriptions used for particular line items in the financial statements and the financial statements themselves.
  • Similarly, the institution that does not have equity as defined in Ind AS 32 financial instruments
  • Presentation and entities whose share capital is not equity may need to adapt the financial statement presentations of members’ and unit holders’ interests.

Components of financial statements
The financial statements shall comprise:

  • The balance sheet at the end of the period
  • Statement of profit and loss for the period
  • Statement of changes in equity for the period
  • Statement of cash flows for the period
  • Notes including a summary of significant accounting policies and other explanatory information
  • Relative information in respect of the preceding period as specified in paragraphs 38 and 38A
  • The balance sheet as at the beginning of the preceding period when an entity applies an accounting policy retrospectively

All statements are essential to be presented with equal eminence.

Structure and content
Financial statements must be identified and distinguished from other information in the same published document and must specify:

  • Name of the reporting entity
  • Whether the financial statements support the individual entity or a group of entities
  • The date of the financial statements
  • The presentation currency
  • The level of rounding up, if any

Balance sheet

  • Present Current and non-current items separately; or
  • Present items in order of liquidity i.e. current and non- current assets / liabilities

Reporting period

  • Accounts presented at least annually
  • If longer or shorter, the entity must disclose the fact.

Statement of cashflows

  • Provides user of financial statements with cash flow information- refer to IND AS 7, statement of cash flows.

Statement of profit & loss

  • An entity shall present a single declaration of profit and loss, with profit or loss and other inclusive income presented in two sections.
  • Entities shall present an analysis of expense recognized in profit or loss using a classification based on the expense method’s nature.

Statement of changes in equity
Information required to be presented:

  • Total income for the period, showingseparately explicable to owners or the parent and non-controlling interest.
  • For each constituent of equity, the effects of reflective application/restatement recognized under IND AS 8,accounting policies, changes in accounting estimates and mistakes.
  • Each component in equity reconciliation between the carrying amount at the beginning and end of the period wasindividually disclosing each change.
  • Amount of portionacceptedas distributions to owners during the period

At AJSH, we assist our clients in bookkeeping, payroll, auditing, taxation, secretarial compliances, and preparation of financial statements ensuring compliance with applicable accounting standards. If you have any questions or wish to know more about compliances with Ind AS 1 Presentation of financial statements, kindly contact us.


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