FAR - Framework, Overview & Statements - General-Purpose Financial Statements - Income Statement 2

Question 1

Is a separate statement of other comprehensive income one of the formats permitted under IFRS?

Answer 1

Yes, this is one of the formats permitted under IFRS.

Question 2

What two formats are accepted under IFRS for Income Statement presentation?

Answer 2

Single-step and multiple-step income statements.

Question 3

What are the forms of the statement of comprehensive income?

Answer 3

Single statement and two statements.

Question 4

Are extraordinary items allowed in IFRS?

Answer 4

No, extraordinary items are not allowed.

Question 5

What does the multiple-step income statement present?

Answer 5

Includes multiple subtotals of revenues, expenses, gains, and losses. (Sales - COGS = GP; GP - Operating Expenses = Income from Operations; Income from Operations + or - Other Income/Expenses = Income before Taxes; IBT - Taxes = Net Income)

Question 6

What does the single-step income statement present?

Answer 6

Total revenues and gains less total expenses and losses.

Question 7

How are the expenses classified under IFRS?

Answer 7

They are classified by business function or nature of the expense.

Question 8

Does IFRS have a required minimum list of items to be reported on the income statement?

Answer 8

Yes.

Question 9

What is comprehensive income?

Answer 9

Net income and other comprehensive income items.

Question 10

What is operating margin?

Answer 10

The excess of operating revenues over operating expenses.