As a minimum, the body of the income statement should include line items that present the following amounts:
Share of the profits and losses of the associates and the joint ventures accounted for by the equity method
One amount representing the after-tax profit or loss of discontinued operations, including the profit or loss from the sale or disposal of the assets of the discontinued operation
Profit or loss for the period
Allocations of the profit or loss
- profit or loss attributable to minority interest
- profit or loss attributable to equity holders of the parent
Analysis of Expenses
Nature of the expenses
Function of the expenses within the organisation
Statement of Changes in Equity
Highlights items which have either increased or decreased the opening balance of owner's equity to arrive at the closing balance at the end of the year.
Includes changes in
- contributed share capital (share issues)
- retained earnings
Changes in Retained Earnings Include Changes... (Statement of Changes in Equity)
To profit/loss for the period
To dividends declared
As a result of errors in prior periods
As a result of changes in accounting policy
A test used to assess the extent to which relevant and reliable information may be omitted, misstated or not disclosed separately without having the potential to adversely affect the decisions about resource allocations by the user.
Consolidated Financial Statements
A method of combining the financial statements of two or more entities that are controlled by the same owners.
An entity that has one or more subsidiaries.
The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Cash Flow Statement Assists
- Generate positive net cash flows in the future.
- Meet its financial commitments as they fall due, including the service of borrowings and the payment of dividends.
- Fund changes in the scope and/or the nature of its activities.
- Obtain external finance where necessary.
Arise from the principle income-producing activities of the entity.
Generally involve receipts and payments for the production, sale and delivery of goods and services.
Relate to the acquisition and disposal of long-term assets, including property, plant and equipment, and other productive assets.
Investments and shares and ownership interests in other entities.
Activities that relate to changes in the size and composition of the financial structure (contributed equity and borrowings) of the entity.
Purpose of the Cash Flow Statement
Generate positive cash flows into the future in order to meet its financial commitments.
Fund changes in the scope of the entity.
Obtain external finance, where necessary.
Disclose the sales, segment results and segment assets for each identifiable segment.
Intended to enable more comprehensive assessments of the performance diversified entities and to assist in predicting their future prospects.