The Statement of Financial Performance (SPL)

Question 1

Statement of Profit or Loss and Comprehensive Income

Answer 1

• Shows the profit (realised gains)
• And other income not shown in profit (unrealised gains)
• Unrealised gains are income seen directly in equity
• Example; Revaluation of property
• Shown in revaluation reserve in equity section

Question 2

The Statement of Changes in Equity

Answer 2

• Shows all movements in the equity section of the SFP
• Links the statement of comprehensive income to the statement of financial position as gains and unrealised gains are reflected in the equity section

Question 3

Expenses

Answer 3

• Can be analysed by nature or function
• Function will be used in exam
• Function (cost of sales, distribution costs, admin costs)

Question 4

Extraordinary Items

Answer 4

• IAS 1 prohibits any extraordinary items from being shown as a deduction before profit from operations
• They most be shown below profit after tax

Question 5

Material Items

Answer 5

• Any material items of income or expenditure should be disclosed as a separate line on the face of the statement of comprehensive income