Assertion (A): Under Ind AS 1, an entity must present a statement of changes in equity as part of its complete set of financial statements. Reason (R): This statement provides information about the changes in the carrying amount of each component of equity during the period. Choose the correct option.
A. A is false but R is true
B. A is true but R is false
C. Both A and R are true but R is NOT the correct explanation of A
D. Both A and R are true and R is the correct explanation of A
Answer: Option D
Solution (By JKSSB Mock Tests)
Ind AS 1 requires the statement of changes in equity to show how each component of equity (share capital, reserves, retained earnings) changed during the period due to profits, dividends, and other comprehensive income. R correctly explains A.
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