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C6 Lecture Notes
C6 Lecture Notes
STATEMENT OF
COMPREHENSIVE INCOME
INCOME STATEMENT
Change in equity during a period resulting from
transactions and other events except Additional Formal statement showing the financial
Investments and Withdrawals) performance/results of operation of an entity
for a given period of time.
a) Components of Profit and Loss
b) Components of other Comprehensive SOURCES OF INCOME
Income
a) Sales of Merchandise
b) Rendering of Services
PROFIT OR LOSS c) Use of Entity Resources (Interest, rent,
royalty etc.)
total of income (-) expenses excluding d) Disposal of Resources other than
other comprehensive income products
“bottom line” in the traditional income
statement
COMPONENTS OF EXPENSES
a) Cost of Goods Sold/Cost of Sales
b) Distribution Cost/Selling Expenses
OTHER COMPREHENSIVE c) Administrative Expenses
INCOME (OCI) d) Other Expenses
e) Income Tax Expense
Items of income and expenses that are not
recognized in profit or loss a required or
permitted by the PFRS
FORMS OF INCOME STATEMENT
1. OCI that will be reclassified subsequently to
profit/loss: 1. FUNCTIONAL PRESENTATION (COST OF
SALES METHOD)
a) Gain/loss from translating financial
statements of a foreign operation Classifies expenses according to function
b) Unrealized gain/loss from derivative Disclose additional info on the nature of
contracts designated as cash flow hedge expenses