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Ias00 1
Ias00 1
Accounting Standard 1
Part 2
Yousef ElMudallal
Statement of comprehensive income
An entity shall present all items of income
and expense recognized in a period:
(a) in a single statement of comprehensive
income, or
(b) in two statements:
1. a statement displaying components of profit
or loss (separate income statement) .
2. and a second statement beginning with profit
or loss and displaying components of other
comprehensive income (statement of
comprehensive income).
Information to be presented in the statement of
comprehensive income
Revenue X
Other income X
Changes in inventories of finished
goods and work in progress X
Raw materials and consumables used X
Employee benefits expense X
Depreciation and amortization expense X
Other expenses X
Total expenses (X)
Profit before tax X
Statement of comprehensive income
The second form of analysis is the ‘function of
expense’ or ‘cost of sales’ method and classifies
expenses according to their function as part of cost of
sales or , for example, part of the costs of distribution
or part of administrative activities.
At a minimum, an entity discloses its cost of sales
under this method separately from other expenses
This method can provide more relevant information to
users than the classification of expenses by nature,
but allocating costs to functions may require arbitrary
allocations and involve considerable judgement
Statement of comprehensive income