Minimum comparative information - Ind AS - Indian Accounting Standards - Companies Law

Minimum comparative information Every 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. An entity shall present, as a minimum, two balance sheets; (Current Year Previous Year) two statements of profit and loss, two statements of cash flows and two statements of changes in equity, and related notes. It means entity can present more than one previous year information. In some cases, narrative information provided in the financial statements for the preceding period(s) continues to be relevant in the current period. For example, an entity discloses in the current period details of a legal dispute, the outcome of which was uncertain at the end of the preceding period and is yet to be resolved. Users may benefit from the disclosure of information that the uncertainty existed at the end of the preceding period and from the disclosure of information about the steps that have been taken during the period to resolve the uncertainty. Additional comparative information An entity may present comparative information in addition to the minimum comparative financial statements required by Ind ASs, if that information is prepared in accordance with Ind ASs. This comparative information may consist of one or more statements 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. 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 (i.e., 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. Change in accounting policy, retrospective restatement, or reclassification- 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 if: it applies an accounting policy retrospectively, makes a retrospective restatement of items in its financial statements or reclassifies items in its financial statements; and 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. 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. 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): the nature of the reclassification; the amount of each item or class of items that is reclassified; and the reason for the reclassification. When it is impracticable to reclassify comparative amounts, an entity shall disclose: the reason for not reclassifying the amounts, and the nature of the adjustments that would have been made if the amounts had been reclassified. Ind AS 8 sets out the adjustments to comparative information required when an entity changes an accounting policy or corrects an error.