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Lecture Notes - : Company Financial Statements Under IFRS (-The Specific Presentation Skills)
Lecture Notes - : Company Financial Statements Under IFRS (-The Specific Presentation Skills)
chapter 12
Company financial
statements under IFRS
(- the specific
presentation skills)
truongthihanhdung@uel.edu.vn
Topic list
1. The statement of profit or loss/SCI (IAS 1)
2. SCE
3. The statement of financial position/SFP (IAS 1)
4. Applying the IAS 1 formats
2
THE STATEMENT OF PROFIT OR LOSS (IAS 1)
The statement of profit or loss (IAS 1)
Cost of sales, distribution costs and administrative expenses classification
in this course:
Cost of sales Distribution costs Administrative expenses
Purchases (net of discounts Wages of marketing and distribution Wages of administrative staff.
received) + delivery inwards staff. Depreciation of NCA used by
adjusted for opening and closing Sales commission. non-production and non-distribution
inventory, and any substantial Distribution expenses: running costs activities and any losses on disposal
losses of inventory. + carriage outwards. of such assets.
In manufactoring company: Depreciation of motor vehicles used Amortisation of intangible assets.
wages of production staff + for distribution/other NCA used in Expenses of substantial loss of
maintenane and depreciation distribution, and marketing costs inventory.
expenses of production NCA + such as advertising and promotion, Irrecoverable debts expenses.
losses on NCA disposal are also and any loss on disposal of such
included. assets.
Costs of advertising and selling
activities.
The statement of profit or loss (IAS 1)
Other operating income:
Examples of other income include:
Dividends received on investments/ interest received on savings
Rent received from property
Insurance claim proceeds
Profits on disposal of non-current assets…
Finance cost
Interest payable on bank loans and overdrafts
Interest on debt securities
The SFP (IAS 1)
The SOFP (IAS 1)
The statement of changes in equity (SCE)
The SCE explains how the equity section of the SFP has changed in the reporting
period.
The SCE comprises:
1. P&L amount for the period transfer to Equity account.
2. The amounts of transactions with owners as: contribution (SC and SP), distribution
(dividends).
4 accounts in Equity section in Accounting course: SC, SP, RE and other reserves.
Movement in SC causes by: cash share issues and bonus issues.
Movement in RE causes by: profit/loss earned in the year, dividends paid out and
bonus issues (if any, just by case).
Example
The extract from equity section of SFP of Monty Ltd as at 30/4/x8 and x9:
Equity 20x9 ($) 20x8 ($)
Share capital $1 equity shares 120,000 100,000
Share premium 70,000 60,000
Retained earnings 122,400 86,700
Other reserves 12,000 12,000
Notes: Monty paid a dividend of 20c per share to all registered sharesholders on 31/12/x8 and
issued 20,000 $1 equity shares at $1.50 in 1/2/x9. The only other movement in equity in the
year was in respect of profit for the period of $55,700.
Prepare the SCE for Monty for the year ended 30/4/x9?
GUIDANCE
Movements SC ($) SP ($) RE ($) Other Total
reserves($)
SCE
8/ A 1 for 8 bonus issue relating to issued equity shares was made out of retained earnings on 31/12/x2. There were
no new issues of preference shares during the year.
Essential Note
Solution
SCI
SCE
Format PLC: statement of changes in equity for the year ended 31/12/x2.
Format PLC: statement of changes in equity for the year ended 31/12/x2.
Equity SC $’000 Preference SC RE $’000 Total $’000
$’000
B/l @ 1/1/x2 800 200 1,100 2,100
Bonus issue of SC 100 (100) -
Profit/loss for the year 1.049 1.049
B/l @31/12/x2 900 200 2,049 3.149
SFP
Homework
19
20