Ind AS 1 generally deals
with presentation of financial statements, whereas existing AS 1 (issued1979)
deals only with the disclosure of accounting policies. The scope of Ind AS 1 is
thus much wider and line by line comparison of the difference with the present
standard is not possible. However, the major requirements as laid down in Ind
AS 1 are as follows:
(i) An enterprise shall make an explicit
statement in the financial statements of compliance with all the Indian
Accounting Standards. Further, Ind AS 1 allows deviation from a requirement of
an accounting standard in case the management concludes that compliance with
Ind ASs will be misleading and if the regulatory framework requires or does not
prohibit such a departure.
(ii)
Ind AS 1 requires presentation and provides criteria for classification of
Current / Non- Current assets / liabilities.
(iii) Ind AS 1 prohibits
presentation of any item as extraordinary Item in the statement of profit and
loss or in the notes.
(iv)
Ind AS 1 requires disclosure of
judgments made by management while framing of accounting polices. Also, it
requires disclosure of key assumptions about the future and other sources of
measurement uncertainty that have significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within next
financial year.
(v) Ind AS 1 requires
classification of expenses to be presented based on nature of expenses.
(vi) Ind AS 1 requires
presentation of balance sheet as at the beginning of the earliest
period when an entity applies an accounting policy retrospectively or makes a
retrospective restatement of items in the financial statements, or when it
reclassifies items in its financial statements.
(vii) In respect of
reclassification of items, Ind AS 1 requires disclosure of nature, amount and
reason for reclassification in the notes to financial statements.
(viii)
Ind AS 1 requires the financial statements to include a
Statement
of Changes in Equity to be shown as a part of the balance sheet
which, inter alia, includes reconciliation between opening and closing balance
for each component of equity