1 Introduction to published accounts Chapter learning objectives

6 KAPLAN PUBLISHING

Chapter 1



Statement of profit or loss and other comprehensive income
A recommended format is as follows:
XYZ: Statement of profit or loss and other comprehensive income for
the year ended 31 December 20X8
$
Revenue X
Cost of sales (X)
–––
Gross profit X
Distribution costs (X)
Administrative expenses (X)
–––
Profit from operations X
Finance costs (X)
Investment income X
–––
Profit before tax X
Income tax expense (X)
–––
Profit for the year X

Other comprehensive income
Gain/loss on revaluation (IAS 16) X
Gain/loss on fair value through other comprehensive
income financial assets (IFRS 9) X
–––
Total comprehensive income for the year X
–––

KAPLAN PUBLISHING 7

Introduction to published accounts

^Alternative presentation

Statement of profit or loss plus statement of comprehensive income A recommended format for the statement of profit or loss is as follows: XYZ Statement of profit or loss for the year ended 31 December 20X8 $ Revenue X Cost of sales (X) ––– Gross profit X Distribution costs (X) Administrative expenses (X) ––– Profit from operations X Finance costs (X) Investment income X ––– Profit before tax X Income tax expense (X) ––– Profit for the year X ––– A recommended format for the presentation of other comprehensive income is: