I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART F: PREPARING BASIC FINANCIAL STATEMENTS 

 

352

 

ABC CO 

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME  

FOR THE YEAR ENDED 31 DECEMBER 20X2 

Illustrating the classification of expenses by function 

 

 

20X2 

 

20X1 

 

 

$'000 

 

$'000 

Revenue  

 

X 

 

X 

Cost of sales 

 

(X) 

 

(X) 

Gross profit 

 

X 

 

X 

Other income 

 

X 

 

X 

Distribution costs 

 

(X) 

 

(X) 

Administrative expenses 

 

(X) 

 

(X) 

Other expenses 

 

(X) 

 

(X) 

Finance cost  

 

(X) 

 

(X) 

Profit before tax 

 

X 

 

X 

Income tax expense  

 

(X) 

 

(X) 

Profit for the year 

 

X 

 

X 

Other comprehensive income: 

  

  

Gains on property revaluation 

 X 

 X 

Total comprehensive income for the year 

 

X 

 

X 

 

 

As a minimum, IAS 1 requires the following line items to be disclosed on the face of the statement of 

profit or loss, in addition to items required by other IFRSs (or profit and loss section of the statement of 

profit or loss and other comprehensive income). 

(a) Revenue 

(b) Finance 

costs 

(c) 

Share of profits and losses of associates and joint ventures accounted for using the equity method 

(note 1) 

(d) Tax 

expense 

(e) 

A single amount for the total of discontinued operations (note 2) 

(IAS 1, para. 82) 

IAS 1 also requires the following line items to be disclosed on the face of the other comprehensive 

income section: 

 

Other comphensive income amounts classified by nature (including share of other comprehensive 

income of associates and joint ventures accounted for using the equity method), grouped into 

amounts that will be reclassified subsequently to profit and loss and those that will not (note 3). 

 

(IAS 1, para. 82A) 

Notes 

1 

These items relate to group accounts which are covered later in this Interactive Text. Note that 

joint ventures are not included in the FFA/FA syllabus.  

2 

Discontinued operations are not included in the FFA/FA syllabus. 

3 

At FFA/FA level, the only items of other comprehensive income are gains on revaluations of 

property, plant and equipment.