1 Statement of RE is now a part of statement of changes in equity

2 Income statement and statement of comprehensive income include:

a Gains or loss from derecognition of FS measured at amortized cost
b Profit or loss
3 Forms of income statement:
a Functional presentationtraditional and common form of income statement. Cost
of sales method (distribution and admin). It provides more relevant information to
users.
b Nature of expense presentationgroup all the expenses and income
4 Purpose of comprehensive statement is to provide a more comprehensive income
information on financial performance measured more broadly than the income as
traditionally computed
5 Net income is included in the determination of RE unappropriated. The Net Other
comprehensive income is carried to reserves or shown separately in the statement of
changes in equity
6 Associate and joint venture income accounted for using the equity method and Gain or
loss from derecognition of financial asset at amortized cost are line items-separately
shown.
7 A noncurrent asset or disposal group is classified as held for sale if its carrying amount
will be recovered principally through a sale transaction rather than continuing use.
8 The group includes goodwill acquired in a business combination if the group is a CGU to
which the goodwill belongs.
9 An extension of the 1 year period does not preclude the asset or disposal group from
being classified as held for sale if the delay is caused by events or circumstances beyond
the entitys control and there is sufficient evidence that the entity remains committed to
its plan to sell the asset.
10 Any cost to sell at classification date should be recognized as impairment loss for the
period and deducted from the asset held for sale
11 A plant is temporarily abandoned if a plant is maintained in workable condition and it is
expected that it will be brought back into use if demand picks up.
12 An entity shall measure a noncurrent asset that ceases to be classified as held for sale at
the lower of carrying amount that would have been recognized if the asset had not been
classified as held for sale and recoverable amount at the date of subsequent decision not
to sell.
13 The assets and liabilities of the group shall be presented separately and cannot be offset
as a single amount (e.g. noncurrent asset classified as held for sale and liabilities directly
associated with noncurrent assets held for sale)
14 A discontinued operation is defined as a component of an entity that either has been
disposed of or is classified as held for sale and: (1) represents a separate major line of
business (2) Is part of single coordinated plan to dispose assets (3) Is a subsidiary
acquired exclusively with a view to resale.
A component of an entity may be subsidiary, a major line of business or geographical segment
whose operations and cash flows can be clearly distinguished operationally from the rest of the
entity. It can be clearly