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Does accounting income take a transactions based determination of income or a change in net worth?
Accounting income is transaction based
What is the order of income statement presentation?
- Income from Continuing
- OperationsIncome from Discontinued
- Operations (net of tax)Extraordinary Items (net of tax)
- Net Income.
What items are not shown on the income statement?
- 1)Prior period adjustments
- 2)Foreign currency translation adjustments
- 3)Unrealized gains and losses on AFS securities
- 4)Unrecognized pension items
- 5)Cumulative effect of changes in accounting principle
- 6)Unrealized gains and losses on cash flow hedges.
Does IFRS have a required minimum list of items to be reported on the income statement?
Yes, it has a minimum list of items
What two formats are accepted under IFRS for Income Statement presentation?
Single-step and multiple step income statement
What does the single-step income statement present?
Total revenues and gains less total expenses and losses.
Are extraordinary items allowed in IFRS?
No, extraordinary items are not allowed.
What is comprehensive income?
Net income + other comprehensive income items.
How are expenses classified under IFRS?
They are classified by business function or nature of the expense.
What is operating margin?
The excess of operating revenues over operating expenses.
What are the forms of the statement of comprehensive income?
Single statement and two statements
Is a spearate statement of other comprehensive income required by IFRS?
Yes, it is required under IFRS.
What does the multiple step income statement present?
Includes multiple subtotals of revenues, expenses, gains, and losses. (Sales - G=CGS = Gross profit; Gross profit - operating expenses = income from operations; Income from operations etc.)
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