Statement Of Profit And Loss And Other Comprehensive Income Proforma

The standard requires a complete set of financial statements to comprise a statement of financial position a statement of profit or loss and other comprehensive income a statement of changes in equity and a statement of cash flows.

Statement of profit and loss and other comprehensive income proforma. This cost is irrelevant in subsequent years. Entities can either present one statement that will include both p l and oci or they can have separate statements for p l and oci ias 1 81a b. A single statement or. Your pro forma profit after taxes in this case would be projected at 164 500.

The statement should be classified and. If a company has a one time expense it may drastically bring down its net income in that particular year. Remember that pro formas are essentially best guesses. Comprehensive income changes that by adjusting specific assets to their fair market value and listing the income or loss from these transactions as accumulated other comprehensive income in the equity section of the balance sheet.

A company might invest its free cash in the stock of another company. Pro forma profit after taxes. The purpose of the statement of profit or loss and other comprehensive income oci is to show an entity s financial performance in a way that is useful to a wide range of users so that they may attempt to assess the future net cash inflows of an entity. General requirements for statement of profit or loss and other comprehensive income ias 1 allows two approaches in presenting profit or loss p l and other comprehensive income oci.

Consolidated statement of profit or loss and other comprehensive income for the year ended 31 december 20x4 illustrating the classification of expenses by function continuing operations 20x4 20x3 000 s 000 s revenue x x cost of sales x x gross profit x x other income x x selling and distribution expenses x x. As per the gaap and ifrs standards these items are not included in the income statement and must be shown separately on the equity side of the balance sheet. Pro forma profit after taxes is figured by subtracting the pro forma tax bill of 70 500 from the pro forma profit before taxes of 235 000. Ias 1 was reissued in september 2007 and applies to annual periods beginning on or after 1 january 2009.

Other comprehensive income oci includes all those revenues expenses gains and losses that affect a company s equity side of the balance sheet and have not yet been realized. Let s take a stock investment for example. Entities may present all items together in.