|
Commission Regulation
(EC) No 1725/2003 of 29. September
2003 amended by Regulation (EC) No 2238/2004
and Regulation (EC) No 1910/2005
Content |
|
- |
Income Statement
Profit or Loss for
the Period
78. All items of
income and expense recognised in a period shall be included
in profit or loss unless a Standard or an Interpretation
requires otherwise.
79. Normally, all
items of income and expense recognised in a period are
included in profit or loss. This includes the effects of
changes in accounting estimates. However, circumstances may
exist when particular items may be excluded from profit or
loss for the current period. IAS 8 deals with two such
circumstances: the correction of errors and the effect of
changes in accounting policies.
80. Other Standards
deal with items that may meet the Framework definitions
of income or expense but are usually excluded from profit or
loss. Examples include revaluation surpluses (see IAS 16),
particular gains and losses arising on translating the
financial statements of a foreign operation (see IAS 21) and
gains or losses on remeasuring available-for-sale financial
assets (see IAS 39).
Information to be
Presented on the Face of the Income Statement
81. As a
minimum, the face of the income statement shall include
line items that present the following amounts for the
period:
(a) revenue;
(b) finance costs;
(c) share of the
profit or loss of associates and joint ventures accounted
for using the equity method;
(d)
tax expense;
(e)
a single amount comprising the total of (i) the
post-tax profit or loss of discontinued operations
and (ii)
the post-tax gain or loss recognised on the
measurement to fair value less costs to sell or on
the disposal
of the assets or disposal group(s) constituting the
discontinued operation; and
(f)
profit or loss.
82. The following
items shall be disclosed on the face of the income statement
as allocations of profit or loss for the period:
(a) profit or loss
attributable to minority interest; and
(b) profit or loss
attributable to equity holders of the parent.
83. Additional line
items, headings and subtotals shall be presented on the
face of the income statement when such presentation is
relevant to an understanding of the entity’s
financial performance.
84. Because the
effects of an entity’s various activities, transactions and
other events differ in frequency, potential for gain or loss
and predictability, disclosing the components of financial
performance assists in an understanding of the financial
performance achieved and in making projections of future
results. Additional line items are included on the face of the
income statement, and the descriptions used and the ordering
of items are amended when this is necessary to explain the
elements of financial performance. Factors to be considered
include materiality and the nature and function of the
components of income and expenses. For example, a bank amends
the descriptions to apply the more specific requirements in
IAS 30. Income and expense items are not offset unless the
criteria in paragraph 32 are met.
85. An entity shall
not present any items of income and expense as extraordinary
items, either on the face of the income statement or in
the notes.
Previous |
Index |
Next
|
