Ind AS 1 sets out the overall requirements for presenting financial statements — what a complete set has to contain, the general classification rules for the balance sheet, and the minimum structure every other standard's specific requirements sit inside. A complete set under Ind AS 1 is a balance sheet, a statement of profit and loss (including other comprehensive income), a statement of changes in equity, a statement of cash flows, notes comprising significant accounting policies and other explanatory information, and comparative information for the preceding period — a financial statement set missing any one of these, however detailed the rest is, is not a complete set under the standard.
The current / non-current classification rule
| Classified as current if... | Applies to |
|---|---|
| Expected to be realised/settled, sold, or consumed in the entity's normal operating cycle | Trade receivables, inventory, trade payables — the ordinary operating items |
| Held primarily for trading purposes | Short-term investments held for trading |
| Expected to be realised/settled within twelve months after the reporting period | A loan due within the next year, regardless of its original term |
| Cash or a cash equivalent, unless restricted from use for at least twelve months | Bank balances, with restricted deposits specifically excluded from this default |
A long-term loan that has breached a covenant, making it repayable on demand at the reporting date, is classified as current even if the lender hasn't actually demanded repayment — the classification follows the contractual right as it stands at the reporting date, not management's expectation of what will happen in practice.
What audit review actually checks against this standard
- 01Confirm all required statements and notes are presentA missing statement of changes in equity, or missing comparative figures, is a completeness gap under Ind AS 1 independent of whether every individual number is correct.
- 02Check current/non-current classification against the actual facts, not management's labelA loan management has classified as non-current despite a covenant breach that makes it repayable on demand is a classification error, not a judgment call.
- 03Check that comparative information is genuinely comparableWhere an accounting policy changed or a prior-period error was corrected, Ind AS 1 and Ind AS 8 together require the comparative figures to be restated and clearly labelled as such.
- 04Check the going concern basis is explicitly assessed and statedInd AS 1 requires management to assess the entity's ability to continue as a going concern when preparing the statements — the assessment itself, not just the absence of a doubt, is a required step.
This is practical guidance written for audit teams, not an authoritative statement of any standard or statute. Standards, forms and timelines change. Check the current text issued by the ICAI and the relevant authority before relying on anything here in an audit file.
Related resources
- Audit data & extractsTrial balance mapping for audit softwareMapping a client's idiosyncratic ledgers to a standard chart of accounts is the step that decides whether analytics and disclosures work at all, and the one most firms rush.
- Audit documentationInd AS 10: events after the reporting period, and the adjusting/non-adjusting lineThe accounting standard's adjusting/non-adjusting distinction is the same logic SA 560 uses on the audit side — this is where it actually comes from.
- Audit workflow & automationSA 570: going concern, and when it actually changes the audit reportMost going-concern evaluations end exactly where they should: no material uncertainty, no change to the report. The standard is about the minority of cases where that's not true.
Free tools, no signup
Each one reads a file entirely in your browser — or, for two of them, just answers a few questions — and nothing is ever uploaded.
- Purchase register checkDuplicate payments, round-sum amounts, weekend-dated invoices, incomplete records.
- GSTR-2B reconcilerMatches your purchase register against GSTR-2B — missing invoices either side, amount mismatches.
- Bank reconciliation checkerMatches your cash book against a bank statement — what's outstanding on each side.
- Fixed asset register checkDuplicate asset codes, missing location or useful life, negative net book value.
- Payroll red-flag scannerBank accounts shared across employees, and records missing an ID, PAN or salary.
- CARO applicability checkerAnswer a few questions about the company and see which CARO 2020 clauses likely apply.
- MSME payment delay checkerMSME-flagged invoices paid — or still unpaid — beyond the 45-day Section 22 limit.
- Related-party transaction screenerTransactions above a threshold you set with no approval reference, grouped by counterparty.
- Depreciation useful life checkerCompares a useful life in use against the Schedule II, Part C indicative figure.
- Materiality calculatorOverall and performance materiality against PBT, revenue, assets or equity, with reasoning shown.
- Sample size calculatorStatistical sample size for a test of controls or a substantive test of detail.