The Statement of Financial Performance

Question 1

How is the financial performance shown?

Answer 1

By the statement of profit or loss and other comprehensive income, and the statement of changes in equity.

Question 2

On the SPL, profit equals?

Answer 2

Realised gains

Question 3

On the SPL, income not shown in profit equals?

Answer 3

Unrealised gains

Question 4

What lines must be shown on the SPL as per IAS1?

6 elements

Answer 4

1. revenue
2. finance cost
3. share of the profit or associate
4. tax expense
5. post tax profit from the discontinued operations
6. profit or loss

Question 5

What are the steps for profit or loss adjustments?

Answer 5

1. Read through all information
2. Enter trial balance line by line
3. Deal with each item of additional information
4. Post the double entry
5. Total each working
6. P/L for the year entered into the retained earnings working and into the SOCIE