Natural Form And Functional Form Of Income Statement

The following example shows the format of an income statement by function of expense.

Natural form and functional form of income statement. Edit download download. There is no reallocation of these expenses to different functions of the entity i e. Printable and fillable functional form income statement. Fillable printable natural form income statement.

4 2 ifrs supplement 3if a company prepares a statement of comprehensive income then disclosure is required for 1 other comprehensive income classified by nature 2 comprehensive income of associates and joint ventures and 3 total comprehensive income the statement of comprehensive. Prot and loss stateme. Cost of goods sold selling costs administrative costs and other expenses. Gross margin l j return on sales t j prior period budget current period.

An income statement by nature method is the one in which expenses are disclosed according to their nature such as depreciation transports costs rent expense wages and salaries etc. The use of function method to disclose expenses still requires us to disclose the individual expenses by nature method under each function either on the face of the income statement or in the notes to the income statement.