Professional Documents
Culture Documents
Research Analysis
Research Analysis
Research Analysis
Notes to financial statements are used to report information that does not fit into the body of the
financial statements in order to enhance the understandability of the financial statements. The purpose of
the notes to financial statements is “to provide the necessary disclosures required by Philippine financial
reporting standards.”
Comprehensive income is the change in equity during a period resulting from transactions and other
events, other than changes resulting from transactions with owners in their capacity as owners.
There are two types of income statements: single-step income statement, in which there are no
sub-totals such as gross profit, operating income, earnings before taxes, etc.; and multi-step income
statement, in which similar expenses are grouped together and intermediate figures such as gross profit,
operating income, EBIT, etc. are calculated.
Source:
Income Statement | Format | Types | Example (xplaind.com)
The statement of changes in equity is a basic statement that shows the movements in the elements or
components of the shareholders.
An entity shall present a statement of changes in equity showing the following:
2) For each component of equity that effects of changes in accounting policies and correction of errors.
3) For each component of equity, a reconciliation between the recurring amount at the beginning and
end of the period, separately disclosing changes from:
a. Profit or loss
b. Each item of other comprehensive income
c. Transactions with owners in their capacity as owners, showing separately contributions by and
distributions to owners.
Source: Textbook
Conceptual Framework and Accounting Standards, 2018 First Edition by Conrado Valix,
Jose Peralta & Christian Aris Valix