ACCA Strategic Business Reporting Study Text.pdfApril Smith
This document provides an overview and introduction to the Emile Woolf study text for the ACCA Strategic Business Reporting (SBR) exam. It discusses the following key points:
- The study text is written by tutors, is comprehensive yet concise, uses simple English, and is used worldwide by Emile Woolf students.
- It provides coverage of the SBR syllabus and exam, which assesses professional competencies in the business reporting environment through an evaluation of concepts, theories, principles and practical situations.
- The exam requires the ability to relate professional issues to relevant concepts and practical scenarios, and involves exercising professional and ethical judgement as well as integrating technical knowledge.
- The study text
The trial balance of Bellemy Fashion Center contained the followin.docxssusera34210
The trial balance of Bellemy Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
BELLEMY FASHION CENTER
TRIAL BALANCE
NOVEMBER 30, 2012
Debit
Credit
Cash
$33,580
Accounts Receivable
37,370
Inventory
48,670
Supplies
9,170
Equipment
140,340
Accumulated Depreciation—Equipment
$26,420
Notes Payable
54,670
Accounts Payable
52,170
Common Stock
93,670
Retained Earnings
11,670
Sales Revenue
765,750
Sales Returns and Allowances
4,200
Cost of Goods Sold
495,400
Salaries and Wages Expense
138,360
Advertising Expense
27,610
Utilities Expenses
15,640
Maintenance and Repairs Expense
12,100
Freight-out
16,700
Rent Expense
25,210
$1,004,350
$1,004,350
Adjustment data:
1.
Supplies on hand totaled $5,170.
2.
Depreciation is $16,815 on the equipment.
3.
Interest of $15,110 is accrued on notes payable at November 30.
Other data:.
1.
Salaries expense is 70% selling and 30% administrative.
2.
Rent expense and utilities expense are 80% selling and 20% administrative.
3.
$30,000 of notes payable are due for payment next year.
4.
Maintenance and repairs expense is 100% administrative.
Warning
Don't show me this message again for the assignment
Ok
Cancel
(a)
Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
supp
Unit 2 [AC300: Intermediate Accounting I]
Assignment Rubric
Assignment grading rubric = 50 points (Total for Parts 1 and 2)
Part 1 (CA1.7 on page 26)
Assignment Requirements
Points
Possible
Points Earned
by Student
1. Adequately addresses the effectiveness or
ineffectiveness of allowing each company to set their
own accounting standards, policies, and practices
with supporting information/citations from the text
and/or additional resources.
0–7
2. Discusses the potential risks of voluntary disclosure
and allowing companies to provide information as
they see fit.
0–7
3. Addresses the potential cost benefits and risks to the
individual companies if they were allowed to set their
own accounting standards, policies, and practices.
0–6
4. Writing is clear, easy to read, and successfully
communicates the effectiveness/ineffectiveness and
benefits/risks associated with allowing companies to
set up their own accounting practices, polices, and
standards.
0–5
Part 2 (IFRS1.5 on page 39)
This Assignment assesses course outcome AC300-1:
Understand competiveness and collaboration in a
global economy.
Points
Possible
Points Earned
by Student
1. Describes what the International Accounting
Standards Board is and how it promotes
competitiveness and collaboration in a global
environment. Provides supporting information from
the text and/or alternate resources.
0–7
2. Identifies the stakeholders that ...
IFRS Master Class Workshop, 30-31 March 2016Tahir Abbas
A training program providing you with a completely up-to-date practical analysis of the complex requirements of International Financial Reporting Standards.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
ACCA Strategic Business Reporting Study Text.pdfApril Smith
This document provides an overview and introduction to the Emile Woolf study text for the ACCA Strategic Business Reporting (SBR) exam. It discusses the following key points:
- The study text is written by tutors, is comprehensive yet concise, uses simple English, and is used worldwide by Emile Woolf students.
- It provides coverage of the SBR syllabus and exam, which assesses professional competencies in the business reporting environment through an evaluation of concepts, theories, principles and practical situations.
- The exam requires the ability to relate professional issues to relevant concepts and practical scenarios, and involves exercising professional and ethical judgement as well as integrating technical knowledge.
- The study text
The trial balance of Bellemy Fashion Center contained the followin.docxssusera34210
The trial balance of Bellemy Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
BELLEMY FASHION CENTER
TRIAL BALANCE
NOVEMBER 30, 2012
Debit
Credit
Cash
$33,580
Accounts Receivable
37,370
Inventory
48,670
Supplies
9,170
Equipment
140,340
Accumulated Depreciation—Equipment
$26,420
Notes Payable
54,670
Accounts Payable
52,170
Common Stock
93,670
Retained Earnings
11,670
Sales Revenue
765,750
Sales Returns and Allowances
4,200
Cost of Goods Sold
495,400
Salaries and Wages Expense
138,360
Advertising Expense
27,610
Utilities Expenses
15,640
Maintenance and Repairs Expense
12,100
Freight-out
16,700
Rent Expense
25,210
$1,004,350
$1,004,350
Adjustment data:
1.
Supplies on hand totaled $5,170.
2.
Depreciation is $16,815 on the equipment.
3.
Interest of $15,110 is accrued on notes payable at November 30.
Other data:.
1.
Salaries expense is 70% selling and 30% administrative.
2.
Rent expense and utilities expense are 80% selling and 20% administrative.
3.
$30,000 of notes payable are due for payment next year.
4.
Maintenance and repairs expense is 100% administrative.
Warning
Don't show me this message again for the assignment
Ok
Cancel
(a)
Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
supp
Unit 2 [AC300: Intermediate Accounting I]
Assignment Rubric
Assignment grading rubric = 50 points (Total for Parts 1 and 2)
Part 1 (CA1.7 on page 26)
Assignment Requirements
Points
Possible
Points Earned
by Student
1. Adequately addresses the effectiveness or
ineffectiveness of allowing each company to set their
own accounting standards, policies, and practices
with supporting information/citations from the text
and/or additional resources.
0–7
2. Discusses the potential risks of voluntary disclosure
and allowing companies to provide information as
they see fit.
0–7
3. Addresses the potential cost benefits and risks to the
individual companies if they were allowed to set their
own accounting standards, policies, and practices.
0–6
4. Writing is clear, easy to read, and successfully
communicates the effectiveness/ineffectiveness and
benefits/risks associated with allowing companies to
set up their own accounting practices, polices, and
standards.
0–5
Part 2 (IFRS1.5 on page 39)
This Assignment assesses course outcome AC300-1:
Understand competiveness and collaboration in a
global economy.
Points
Possible
Points Earned
by Student
1. Describes what the International Accounting
Standards Board is and how it promotes
competitiveness and collaboration in a global
environment. Provides supporting information from
the text and/or alternate resources.
0–7
2. Identifies the stakeholders that ...
IFRS Master Class Workshop, 30-31 March 2016Tahir Abbas
A training program providing you with a completely up-to-date practical analysis of the complex requirements of International Financial Reporting Standards.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601
Ifrs
https://zabeelinstitute.ae/ifrs-training-course-dubai-2/
IFRS Training Course in Dubai, Sharjah, Best training institute for international Financial Reporting, corporate classes, certification
IFRS Training | IFRS Course in Dubai | Sharjah | Abudhabi- Zabeel Institute
( Contact Information :-)
Business Name : Zabeel International Institute of Management and Technology
Website URL : https://zabeelinstitute.ae/
Contact Person : Dr. Sijo Rose Tom
Business Email Address : sijo@zabeelinstitute.ae
Address/Location : Office no# M 07, AL Khallafi Building, Near Burjuman Metro Station, Bur Dubai, Dubai, UAE
Postal Code/Zip Code : 117514
State/County : Dubai
Country : United Arab Emirates
Business Telephone Number : 00971 505258501
COVENTRY UNIVERSTYFaculty of Business Environment and Society.docxvanesaburnand
This document provides instructions and assessment criteria for a group coursework assignment analyzing and interpreting the financial statements of two companies, Vodafone Group PLC and BT Group PLC. Students are asked to assess the companies' financial performance and position based on ratios, evaluate their long-term strategic development, and recommend which would make a more suitable investment. The assignment must be 2,700-3,000 words and submitted by November 18th. It will be assessed on various criteria such as the financial analysis, strategic assessment, recommendations, and structure/presentation.
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https://zabeelinstitute.ae/ifrs-training-course-dubai-2/Ifrs
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https://zabeelinstitute.ae/ifrs-training-course-dubai-2/
This document provides guidance on when and how to prepare consolidated financial statements for an economic entity under control of a controlling entity. Key points include:
- A controlling entity must present consolidated financial statements including all controlled entities.
- Control is defined as having power over an entity and exposure or rights to variable benefits from its involvement. Control is established through assessing power over and benefits from an entity.
- Consolidated financial statements are prepared using uniform accounting policies and by eliminating intragroup balances and transactions. Controlled entities are fully consolidated from the date control commences until it ceases.
- Exceptions are provided for investment entities which do not consolidate particular controlled entities and instead measure them at fair value through surplus or
This chapter discusses key frameworks related to financial reporting. It provides an overview of the Conceptual Framework for Financial Reporting, which identifies principles for developing accounting standards and assists in preparing financial statements. The Conceptual Framework defines elements of financial statements and states that financial statements are normally prepared under the going concern assumption. The chapter also covers IFRS 13 Fair Value Measurement. Exam questions may focus on applying these frameworks to financial reporting scenarios.
This document provides information about EY's 12th Edition of its IFRS Course, which is designed to prepare finance professionals to deal with the complex requirements of IFRS and cover the syllabus of ACCA's Diploma in IFRS. The course will be delivered in various Indian cities in both face-to-face and online formats. It will cover all IFRS and Ind AS standards through classroom training, videos, study materials and a question bank. On completion, participants will receive a certificate and access to an online learning system. The course is aimed at accounting professionals seeking the ACCA Diploma in IFRS and those requiring IFRS expertise.
The document discusses key concepts in accounting, including assumptions, principles, and definitions. It states that accounting involves recording, compiling, analyzing, and interpreting financial data to determine a business's financial outcomes and position. The main assumptions in accounting are the going concern assumption and the monetary unit assumption. The key principles are cost principle, revenue recognition principle, and matching principle. Accounting principles provide agreed upon rules for recording transactions and preparing financial reports.
SMART TOUCH LEARNING LTDBalance sheetAssets and liabilit.docxpbilly1
This document provides a balance sheet and related notes for Smart Touch Learning Ltd. The balance sheet divides assets and liabilities into current and non-current categories. It shows current assets of $65,500 and non-current assets of $47,800, for total assets of $106,000. Current liabilities are $50,100 and non-current liabilities are $20,000, for total liabilities of $70,100. Shareholders' equity includes share capital of $30,000 and retained earnings of $5,900, for total equity of $35,900. The total liabilities and equity amount is $106,000. The document also includes explanatory notes on accounting standards, depreciation
Bis and po finance academy offer - June, career pathways and cpdEdward Harvey
This document provides information on upcoming finance training and professional development opportunities from BIS Finance.
Key events and opportunities mentioned include:
- An accounting standards update event on July 21st in London to cover IFRS updates and private sector developments.
- A government finance summer school in September focused on IFRS accounting standards with locations in Leeds, London, Bristol.
- Information on the government finance career pathways framework and career planner tool to aid career development.
- Various webinars, conferences, and software demos from groups like ACCA and ICAEW covering topics like blockchain, financial crime, and accounting software.
CVS Surveyors is Client Centric and our focus is to ensure we provide comprehensive Client Care.You will receive one to one support from your dedicated Account Manager who will guide you through the entire process.
Training packages and accredited courses are developed to:
1. Specify skills and knowledge required to perform effectively in the workplace and support nationally consistent, portable qualifications.
2. Training packages are developed by Industry Skills Councils according to a national process, using research and consultation. They have a standardized structure of units of competency, assessment guidelines, and qualifications frameworks.
3. Accredited courses are developed to address niche skills needs and are accredited through state/territory or national bodies. They are based on units of competency or modules. Both training packages and accredited courses are accessible online through Training.gov.au or their governing bodies.
Risk management and the business model - IRM India AffiliateIRM India Affiliate
IRM is the leading professional body for risk management. We are an independent, not-for-profit organisation that champions excellence in managing risk to improve organisational performance.
We do this by providing internationally recognised qualifications and training, publishing research and guidance and
raising professional standards across the world. Our members work in all industries, in all risk disciplines and across
the public, private and not-for-profit sectors.
IRM does not accept any liability to any party for any loss, damage or costs howsoever arising, whether directly or
indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any
person relying on or otherwise using this document or arising from any omission from it.
Learn more about Risk Management and the essentials with IRM’s level 1 certification.
https://www.theirmindia.org/level1
Level 1 qualified or risk management professionals with 2-3 years of experience can also enroll for level 2 certification.
https://www.theirmindia.org/level2
Visit: https://www.theirmindia.org/
Address: IRM India Affiliate, 907,908,909, Corporate Park II, 9th Floor, VN Puran Marg, Near Swastik Chambers, Chembur Mumbai 400071
This document provides an overview and agenda for a one-day A2 economics revision workshop focusing on key concepts related to costs, revenues, business objectives, and competition. The workshop includes introductory content, interactive activities, and exam-style questions to help students improve their examination skills and techniques. Additional independent revision activities are also provided.
COURSEWORKHome Retail Group plcwww.homeretailgroup.com.docxvictorring
This document provides coursework instructions related to auditing Home Retail Group plc. It includes information about the company, its divisions, and financial statements. Students must critically evaluate the risk-based audit approach used for Home Retail Group, identify factors from 2012-2014 annual reports that could indicate going concern problems, and discuss factors that would influence the auditor's opinion on the 2014 financial statements. The coursework should relate issues from Home Retail Group's audit to relevant auditing standards and literature.
This document provides an overview of segment reporting under SAP New GL. It defines an operating segment as a business component that earns revenue and incurs expenses. Segments are identified based on discrete financial information reviewed by a chief operating decision maker. Reportable segments meet certain thresholds for revenue, profits/losses, or assets. SAP New GL allows splitting of financial statements like P&L and balance sheet by segment. It also enables real-time reconciliation between financial and management accounting data.
World Accounting Summit Presents IFRS, 18 - 22 May 2014, Dubai, UAEAli Zeeshan
1. The document advertises an upcoming accounting conference on IFRS to be held in Dubai in May 2014. It provides details on the conference agenda, speakers, masterclasses, and registration information.
2. Over 30 CFOs and IFRS experts from the region will speak at the conference on latest IFRS developments and their practical implementation. Pre-conference masterclasses and post-conference technical sessions will also be offered.
3. Attendees will gain insights on implementing new IFRS standards like IFRS 10, 11, 12, and 13 through case studies and best practices shared by regional practitioners. The conference aims to help attendees benchmark their IFRS knowledge and application strategies.
COLLEGE
PHYSICS LAB REPORT
STUDENTS NAME
ANALYSIS OF A BUBBLE CHAMBER PICTURE
SUPERVISED BY:
19/05/2020
1. Introduction
A bubble chamber is a vessel filled with a superheated transparent liquid (most often liquid hydrogen) used to detect electrically charged particles moving through it. It was invented in 1952 by Donald A. Glaser, for which he was awarded the 1960 Nobel Prize in Physics.
A convenient way to study the properties of the fundamental subatomic particles is through observation of their bubble trails, or tracks, in a bubble chamber. Using measurements made directly on a bubble chamber photograph, we can often identify the particles from their tracks and calculate their masses and other properties. In a typical experiment, a beam of a particular type of particle is sent from an accelerator into a bubble chamber, which is a large liquid-filled vessel. To simplify the analysis of the data, the liquid used is often hydrogen, the simplest element. The use of liquid hydrogen, while it simplifies the analysis, complicates the experiment itself, since hydrogen, a gas at room temperature, liquefies only when cooled to -246◦C. For charged particles to leave tracks in passing through the chamber, the liquid must be in a “super-heated” state, in which the slightest disturbance causes boiling to occur. In practice, this is accomplished by expanding the vapor above the liquid with a piston a few thousandths of a second before the particles enter the chamber.
2. Methods
2.1 Materials needed:
1. student worksheet per student
2. Ruler
3. Scissors
4. Glue stick
5. Pocket calculator
2.2 Procedures
2.2.1 Calculation of the X Particle’s Mass.
Make measurements on each of the photographs. In particular, for each of the circled events measure these four quantities:
· `Σ - The length of the Σ track,
· θ - the angle between the Σ− and π− track,
· s - the sagitta of the π− track,
· `π - The chord length of the π− track.
Your values for the event should be close to those given in the sample input. Run the program using each set of measurements, and tabulate the computed X0 mass from each event. Compute an average of the calculated masses and find the average deviation, expressing your result as Mx ±∆Mx.
Compare your final result with some known neutral particles listed below and identify the X0 particle based on this comparison.
Particlemass (in MeV/c2)
π0 135
K0 498
n 940
Λ0 1116
Σ0 1192
Ξ0 1315
2.2.2 Determination of the Angle θ.
The angle θ between the π− and Σ− momentum vectors can be determined by drawing tangents to the π− and Σ− tracks at the point of the Σ− decay.
We can then measure the angle between the tangents using a protractor. We can show.
Collins did not understand the events that led to the reasoning .docxvickeryr87
Collins did not understand the events that led to the reasoning why and actions how Wells Fargo conveyed victories, achievements, and accomplishments. Therefore, Collins was incorrect. Wells Fargo as a company was able to achieve earning because of their successful strategies in profit revenue or turnover for each employee. The Good to Great article brought up that many people were surprised when finding out what made companies successful especially in relation to the leadership (Collins, 2001).
Our text states that it is difficult for companies to find good ethical leaders because they tend to be more expensive (Meese, Ortmeier, 2001). Unethical leadership is sure to bring the downfall of any business; it is impossible to have a successful business if there are unethical practices, the employees are also bound to begin these practices making it difficult for the company to hold their end of their promises to their customers or members.
"He who oppresses the poor to make more for himself or who gives to the rich, will only come to poverty" (Proverbs 22:16).
Collins, J. (2001). Good to great: Why some companies make the leap and others don't. New York, NY: Harper Collins.
Mees, E., Ortmeier, P. (2001). Leadership, ethics, and policing:Challenges for the 21st century. Upper Saddle River, NJ: Prentice Hall
250-word reply to classmate threads. The reply requires a minimum of 1 properly formatted citation. Each reply must be completed by you, the individual student. Additionally, each thread and reply must reflect a solid Christian worldview through the use of at least 1 Holy Bible reference.
Responding to a classmate’s post requires both the addition of new ideas and analysis. A particular point made by the classmate must be addressed and built upon by your analysis in order
to move the conversation forward
. Thus, the response post is a rigorous assignment that requires you to build upon initial posts to develop deeper and more thorough discussion of the ideas introduced in the initial posts. As such, reply posts that merely affirm, restate, or unprofessionally quarrel with the previous post(s) and fail to make a valuable, substantive contribution to the discussion will receive appropriate point deductions.
.
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COLLEGE
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STUDENTS NAME
ANALYSIS OF A BUBBLE CHAMBER PICTURE
SUPERVISED BY:
19/05/2020
1. Introduction
A bubble chamber is a vessel filled with a superheated transparent liquid (most often liquid hydrogen) used to detect electrically charged particles moving through it. It was invented in 1952 by Donald A. Glaser, for which he was awarded the 1960 Nobel Prize in Physics.
A convenient way to study the properties of the fundamental subatomic particles is through observation of their bubble trails, or tracks, in a bubble chamber. Using measurements made directly on a bubble chamber photograph, we can often identify the particles from their tracks and calculate their masses and other properties. In a typical experiment, a beam of a particular type of particle is sent from an accelerator into a bubble chamber, which is a large liquid-filled vessel. To simplify the analysis of the data, the liquid used is often hydrogen, the simplest element. The use of liquid hydrogen, while it simplifies the analysis, complicates the experiment itself, since hydrogen, a gas at room temperature, liquefies only when cooled to -246◦C. For charged particles to leave tracks in passing through the chamber, the liquid must be in a “super-heated” state, in which the slightest disturbance causes boiling to occur. In practice, this is accomplished by expanding the vapor above the liquid with a piston a few thousandths of a second before the particles enter the chamber.
2. Methods
2.1 Materials needed:
1. student worksheet per student
2. Ruler
3. Scissors
4. Glue stick
5. Pocket calculator
2.2 Procedures
2.2.1 Calculation of the X Particle’s Mass.
Make measurements on each of the photographs. In particular, for each of the circled events measure these four quantities:
· `Σ - The length of the Σ track,
· θ - the angle between the Σ− and π− track,
· s - the sagitta of the π− track,
· `π - The chord length of the π− track.
Your values for the event should be close to those given in the sample input. Run the program using each set of measurements, and tabulate the computed X0 mass from each event. Compute an average of the calculated masses and find the average deviation, expressing your result as Mx ±∆Mx.
Compare your final result with some known neutral particles listed below and identify the X0 particle based on this comparison.
Particlemass (in MeV/c2)
π0 135
K0 498
n 940
Λ0 1116
Σ0 1192
Ξ0 1315
2.2.2 Determination of the Angle θ.
The angle θ between the π− and Σ− momentum vectors can be determined by drawing tangents to the π− and Σ− tracks at the point of the Σ− decay.
We can then measure the angle between the tangents using a protractor. We can show.
Collins did not understand the events that led to the reasoning .docxvickeryr87
Collins did not understand the events that led to the reasoning why and actions how Wells Fargo conveyed victories, achievements, and accomplishments. Therefore, Collins was incorrect. Wells Fargo as a company was able to achieve earning because of their successful strategies in profit revenue or turnover for each employee. The Good to Great article brought up that many people were surprised when finding out what made companies successful especially in relation to the leadership (Collins, 2001).
Our text states that it is difficult for companies to find good ethical leaders because they tend to be more expensive (Meese, Ortmeier, 2001). Unethical leadership is sure to bring the downfall of any business; it is impossible to have a successful business if there are unethical practices, the employees are also bound to begin these practices making it difficult for the company to hold their end of their promises to their customers or members.
"He who oppresses the poor to make more for himself or who gives to the rich, will only come to poverty" (Proverbs 22:16).
Collins, J. (2001). Good to great: Why some companies make the leap and others don't. New York, NY: Harper Collins.
Mees, E., Ortmeier, P. (2001). Leadership, ethics, and policing:Challenges for the 21st century. Upper Saddle River, NJ: Prentice Hall
250-word reply to classmate threads. The reply requires a minimum of 1 properly formatted citation. Each reply must be completed by you, the individual student. Additionally, each thread and reply must reflect a solid Christian worldview through the use of at least 1 Holy Bible reference.
Responding to a classmate’s post requires both the addition of new ideas and analysis. A particular point made by the classmate must be addressed and built upon by your analysis in order
to move the conversation forward
. Thus, the response post is a rigorous assignment that requires you to build upon initial posts to develop deeper and more thorough discussion of the ideas introduced in the initial posts. As such, reply posts that merely affirm, restate, or unprofessionally quarrel with the previous post(s) and fail to make a valuable, substantive contribution to the discussion will receive appropriate point deductions.
.
Define discrimination, victimization and affirmative actions; .docxvickeryr87
Define discrimination, victimization and affirmative actions; and consider the ethical and legal aspects of each
Consider problems with sexual harassment and workplace drugs, and consider the ethical implication of company policies directed at each
Reference
American Public University System. (n.d.). MGMT200: Lesson 5: The Corporation and External Stakeholders. Retrieved from https://apus.realizeithome.com/
Collins, D. (2012). Business Ethics. Hoboken, NJ: Wiley
Weiss, J. (2014).
Business Ethics: A Stakeholder & Issues Management Approach
. San Francisco, CA: Koehler.
.
Define data mining. Why are there many names and definitions for d.docxvickeryr87
Define data mining. Why are there many names and definitions for data mining
What are the main reasons for the recent popularity of data mining?
Discuss what an organization should consider before making a decision to purchase data mining software.
.
Define culture. How can culture be conceptionalizedDiscuss at l.docxvickeryr87
Define culture. How can culture be conceptionalized?
Discuss at least two of the variables that moderate differences between domestic and international HR practices.
Compare cross-cultural management studies, and list their advantages and disadvantages.
Discuss two HR activities in which a multinational firm must engage, which would not be required in a domestic environment?
200 words
In text citations
Dowling, P. J., Festing, M., & Engle, A. (2013).
(6th ed.). Boston, MA:
International human resource management Cengage
.
Define cultural relativism and how it is used by anthropologis.docxvickeryr87
Define cultural relativism and how it is used by anthropologists as an approach to cross-cultural research. Explain how cultural relativism contributes to anthropologists' efforts to counter ethnocentrism.
Describe an example of how your culture has ‘taught’ you to behave the way you do, or to believe what you believe. This could be an instance in which you were taught a lesson, or perhaps when you made a mistake and were corrected by an elder. Think about how such lessons shape your worldview, your ideas about what's "normal," and your values. Are these universal beliefs or are they culturally constructed?
I need the answer in the form of a speech draft cause I need to use it on presentation.!!!!!!!!!!!!
First question no less than 200 words, the second question no less than 150 words
.
Define cost control and provide several examples of how it affec.docxvickeryr87
Define cost control and provide several examples of how it affects managers at all levels within a healthcare organization. Compare and contrast Medicare and Medicaid in terms of eligibility, benefit packages, access to care, and other key dimensions. Discuss the various ways in which healthcare reform has affected and may affect the financial delivery of health care today and into the future.
.
Define corporate governance.Discuss the events that led up.docxvickeryr87
Define corporate governance.
Discuss the events that led up to the need for increased corporate governance.
Define business strategy. List five possible business strategies.
Discuss the purpose of the Capability Maturity Model.
Define auditing.
Define internal control and provide an example of a control.
Discuss the role Sarbanes/Oxley has played with respect to corporate governance.
Define IT governance.
List factors one should consider with respect to governing the cloud.
I need answers with references and intext citations.
.
Define communication in your own words. Identify and distinguish amo.docxvickeryr87
Define communication in your own words. Identify and distinguish among the five forms of communication and the persuasive speech ( please read content). I’m also including my two papers so you can compare. my art and music essay is my persuasive essay it’s also my best essay please read content.......
.
Define Civil Liberties. List 5 Civil Liberties. How do they differ.docxvickeryr87
Define Civil Liberties. List 5 Civil Liberties. How do they differ from Civil Rights? Which groups have challenged government and individuals to obtain Civil Rights, and how? Provide at least three examples of civil rights legislation that were a result of civil rights movements.
.
Define civilization. Do we really need it in order to survive and pr.docxvickeryr87
Define civilization. Do we really need it in order to survive and prosper on this planet? The real question is whether we can live above subsistence without the technological innovations that cities generate. Moreover, the question is not as frivolous as it may seem at first glance. Many cultures throughout human history consciously decided not to take the route toward nucleated settlements and the resultant consequences. The Celts represent one example from the time line of our course of a people who preferred not to have cities. The Avars, a Turkic-speaking people from Central Asia, were pastoral nomads who acquired cities during the course of their conquests, yet they “used” cities in ways that would strike average city dwellers as most strange.
Section 2.1 of your textbook,
World History: The Human Experience to 1500
, presents nine characteristics commonly associated with civilizations. Choose one society from the
Week One Civilization Tour
, which includes Mesopotamian, Olmec, Egyptian, Harappan, and Ancient Chinese societies. Based on at least two of the characteristics listed in Section 2.1, explain why your chosen society can be considered a civilization. Provide specific examples drawn from this week’s learning materials to support your claims. Cite all sources according to APA style as outlined in the
Ashford Writing Center
, using both in-text citations and providing full references at the bottom of your post.
Your initial post should be a minimum of 300 words. Respond to two colleagues in a substantive post of at least 150 words.
.
Define case management and care management and compare the dif.docxvickeryr87
Define case management and care management and compare the differences.
Mention and discuss the case management concepts into the clinical practice of community health nursing.
Give the definition of family, mention, and discuss the different types of families, mention, and discuss the model of care for families.
Describe strategies for moving from intervention at the family level to intervention at the aggregate level
.
Define Bureaucracy. Government at all levels has grown enormously, .docxvickeryr87
Bureaucracy refers to the organizational structure of government agencies and departments. The federal bureaucracy is organized into four levels - cabinet departments, independent agencies, government corporations, and regulatory commissions. Bureaucracy has grown over time due to increased government programs and regulation of the economy and society. Independent regulatory agencies are sometimes called the "fourth branch of government" because they have rulemaking powers outside the traditional three branches.
Define and explain how the Twitter search function works to search f.docxvickeryr87
Define and explain how the Twitter search function works to search for specific words in any Twitter post.
In developing your initial response, be sure to draw from, explore, and cite credible reference materials, including
at least one scholarly peer-reviewed reference
. In responding to your classmates’ posts, you are encouraged to examine their opinions, offering supporting and/or opposing views.
.
Define and relate these different terminologies and Information Gove.docxvickeryr87
Define and relate these different terminologies and Information Governance (IG), Data Governance (DG) and Information Technology Governance (ITG), E-Discovery, Digital Assets; how do you see IT Governance evolving in the next 5 years? What framework will you adopt to in implementing the IT Governance Initiative, and demonstrate its applicability.
.
Define and provide examples of-Basic probability- Bayes the.docxvickeryr87
Define and provide examples of:
-Basic probability
- Bayes theorem
- Multiplication rule
- Addition rule
-Binomial distribution
-Poisson distribution
-Normal distribution
-Sample distribution
-Central limit theorem
Use Apa Style, cites, references and avoid plagiarism.
.
Define and discuss the phrase Manifest Destiny. Explain how this b.docxvickeryr87
Define and discuss the phrase "Manifest Destiny." Explain how this belief came to divide the nation.
Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
.
Define and discuss the differences between vision and mission stat.docxvickeryr87
Define and discuss the differences between vision and mission statements.
Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
David, F. (2011). 1.
Strategic management: concepts & cases
(Custom Edition ed., pp. 11-13). New York: McGraw-Hill Irwin.
No Wiki, Dictionary.com or Plagiarism
.
Define and discuss the four types of innovation. How might these.docxvickeryr87
Define and discuss the four types of innovation. How might these innovations relate to the industry life cycle?
business innovation is:
Discuss the ‘make versus buy decision firms often are forced to make (Define terms)
What is vertical integration? Discuss to include benefit, risk, possible alternative, relationship to company value chain.
.
Define and discuss the data wiping process.Discuss how a cloud.docxvickeryr87
Define and discuss the data wiping process.
Discuss how a cloud-based solution provider may reduce the risk of a DDoS attack.
Define and discuss hyperjacking attacks.
Define and discuss guest-hopping attacks.
Paper requirements
:
Minimum
1200
words (excluding title page, table of contents, abstract, and references pages)
Minimum of four (4) references
Format your paper consistent with APA guidelines
When submitting the assignment, please ensure you are submitting as an attached
MS Word document
.
.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
2009 IASC Foundation Training Material for the IFRS® for .docx
1. 2009
IASC Foundation: Training Material for the IFRS® for SMEs
Module 5 – Statement
of Comprehensive
Income and Income
Statement
IASC Foundation: Training Material
for the IFRS® for SMEs
including the full text of
Section 5 Statement of Comprehensive Income and Income
Statement
of the International Financial Reporting Standard (IFRS)
for Small and Medium-sized Entities (SMEs)
issued by the International Accounting Standards Board on 9
July 2009
with extensive explanations, self-assessment questions and case
studies
3. Right of use
Although the International Accounting Standards Committee
(IASC) Foundation encourages you to use this training
material, as a whole or in part, for educational purposes, you
must do so in accordance with the copyright terms
below.
Please note that the use of this module of training material is
not subject to the payment of a fee.
Copyright notice
All rights, including copyright, in the content of this module of
training material are owned or controlled by the
IASC Foundation.
Unless you are reproducing the training module in whole or in
part to be used in a stand-alone document, you must
not use or reproduce, or allow anyone else to use or reproduce,
any trade marks that appear on or in the training
material. For the avoidance of any doubt, you must not use or
reproduce any trade mark that appears on or in the
training material if you are using all or part of the training
materials to incorporate into your own documentation.
These trade marks include, but are not limited to, the IASC
Foundation and IASB names and logos.
When you copy any extract, in whole or in part, from a module
of the IASC Foundation training material, you must
ensure that your documentation includes a copyright
acknowledgement that the IASC Foundation is the source of
your training material. You must ensure that any extract you
are copying from the IASC Foundation training
material is reproduced accurately and is not used in a
4. misleading context. Any other proposed use of the IASC
Foundation training materials will require a licence in writing.
Please address publication and copyright matters to:
IASC Foundation Publications Department
30 Cannon Street London EC4M 6XH United Kingdom
Telephone: +44 (0)20 7332 2730 Fax: +44 (0)20 7332 7249
Email:[email protected] Web: www.iasb.org
The IASC Foundation, the authors and the publishers do not
accept responsibility for loss caused to any person who
acts or refrains from acting in reliance on the material in this
publication, whether such loss is caused by negligence
or otherwise.
The IASB logo/the IASCF logo/‘Hexagon Device’, ‘IASC
Foundation Education logo’, IASC Foundation’, ‘eIFRS’, ‘IAS’,
‘IASB’, ‘IASC’, ‘IASCF’, ‘IASC Foundation Education’
‘IASs’, ‘IFRIC’, ‘IFRS’, ‘IFRSs’, ‘International Accounting
Standards’,
‘International Financial Reporting Standards’ and ‘SIC’ are
Trade Marks of the IASC Foundation.
Contents
5. IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) iv
INTRODUCTION
_____________________________________________________
_____ 1
Learning objectives
_____________________________________________________
___ 1
IFRS for SMEs
_____________________________________________________
_______ 2
Introduction to the
requirements__________________________________________
_____ 2
REQUIREMENTS AND EXAMPLES
___________________________________________ 3
Scope of this section
_____________________________________________________
__ 3
Presentation of total comprehensive income
_____________________________________ 4
Analysis of expenses
_____________________________________________________
_ 14
SIGNIFICANT ESTIMATES AND OTHER JUDGEMENTS
_________________________ 18
COMPARISON WITH FULL IFRSs
___________________________________________ 19
TEST YOUR KNOWLEDGE
________________________________________________ 20
6. APPLY YOUR KNOWLEDGE
_______________________________________________ 24
Case study 1
_____________________________________________________
_______ 24
Answer to case study 1
____________________________________________________
26
Case study 2
_____________________________________________________
_______ 31
Answer to case study 2
____________________________________________________
33
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs 1
This training material has been prepared by IASC Foundation
education staff and has
not been approved by the International Accounting Standards
Board (IASB).
The accounting requirements applicable to small and medium-
sized entities (SMEs) are
set out in the International Financial Reporting Standard (IFRS)
for SMEs, which was
issued by the IASB in July 2009.
7. INTRODUCTION
This module focuses on the requirements for the presentation of
the statement of
comprehensive income and the income statement in accordance
with Section 5 Statement of
Comprehensive Income and Income Statement of the IFRS for
SMEs.
Section 3 Financial Statement Presentation sets out general
presentation requirements and
Sections 4–8 focus on the requirements for the presentation of
the financial statements.
This module introduces the learner to the statement of
comprehensive income and the
income statement, guides the learner through the official text of
the requirements for
presenting those statements, develops the learner’s
understanding of the requirements
through the use of examples and indicates significant
judgements that are required
presenting those statements. Furthermore, the module includes
questions designed to test the
learner’s knowledge of the requirements and case studies to
develop the learner’s ability to
present those statements in accordance with the IFRS for SMEs.
Learning objectives
Upon successful completion of this module you should know the
financial reporting
8. requirements for the presentation of the statement of
comprehensive income and the income
statement in accordance with the IFRS for SMEs. Furthermore,
through the completion of case
studies that simulate aspects of the real world application of
that knowledge, you should have
enhanced your ability to present those statements in accordance
with the IFRS for SMEs.
In particular, in the context of the IFRS for SMEs, you should:
-statement approach
and the two-statement
approach
ted as
other comprehensive income
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 2
IFRS for SMEs
9. The IFRS for SMEs is intended to apply to the general purpose
financial statements of entities
that do not have public accountability (see Section 1 Small and
Medium-sized Entities).
The IFRS for SMEs includes mandatory requirements and other
material (non-mandatory) that is
published with it.
The material that is not mandatory includes:
for SMEs and explains its
purpose, structure and authority.
statements and a disclosure
checklist.
main considerations in reaching
its conclusions in the IFRS for SMEs.
with the publication of the
IFRS for SMEs.
In the IFRS for SMEs the Glossary is part of the mandatory
requirements.
In the IFRS for SMEs there are appendices in Section 21
Provisions and Contingencies, Section 22
Liabilities and Equity and Section 23 Revenue. Those
appendices are non-mandatory guidance.
10. Introduction to the requirements
The objective of general purpose financial statements of a small
or medium-sized entity is to
provide information about the entity’s financial position,
performance and cash flows that is
useful for economic decision-making by a broad range of users
who are not in a position to
demand reports tailored to meet their particular information
needs.
Section 3 Financial Statement Presentation prescribes general
requirements for the presentation of
financial statements.
Section 5 Statement of Comprehensive Income and Income
Statement specifies requirements for
presenting an entity’s financial performance for the period. It
provides an accounting policy
choice between presenting total comprehensive income in a
single statement or in two
separate statements. It specifies line items to be presented in
those statements and prohibits
the presentation or description of any items of income or
expense as ‘extraordinary items’. It
also requires presentation of an analysis of expenses using a
classification based on either the
nature of expenses or the function of expenses within the entity,
whichever provides
information that is reliable and more relevant.
Module 5 – Statement of Comprehensive Income
and Income Statement
11. IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 3
REQUIREMENTS AND EXAMPLES
The contents of Section 5 Statement of Comprehensive Income
and Income Statement of the
IFRS for SMEs are set out below and shaded grey. Terms
defined in the Glossary of the
IFRS for SMEs are also part of the requirements. Those terms
are in bold type the first time
they appear in the text of Section 5. The notes and examples
inserted by the IASC Foundation
education staff are not shaded. The insertions made by the staff
do not form part of the
IFRS for SMEs and have not been approved by the IASB.
Scope of this section
5.1 This section requires an entity to present its total
comprehensive income for a period—
ie its financial performance for the period―in one or two
financial statements. It sets
out the information that is to be presented in those statements
and how to present it.
Notes
Profit or loss (sometimes called net income) is frequently used
12. as a measure of
performance or as the basis for other measures, such as return
on investment or
earnings per share. The elements directly related to the
measurement of profit are
income and expenses. Paragraph 5.4(b) specifies three items of
income and expenses
that are recognised outside of profit or loss (ie in other
comprehensive income). This
section specifies the presentation of an entity’s income and
expenses. Other sections of
the IFRS for SMEs specify requirements for recognising and
measuring income and
expenses.
Income is increases in economic benefits during the accounting
period in the form of
inflows or enhancements of assets or decreases of liabilities that
result in increases in
equity, other than those relating to contributions from equity
participants.
Expenses are decreases in economic benefits during the
accounting period in the form
of outflows or depletions of assets or incurrences of liabilities
that result in decreases
in equity, other than those relating to distributions to equity
participants.
Distinguishing between items of income and expense and
combining them in different
ways also permits several measures of entity performance to be
displayed. These have
differing degrees of inclusiveness. An entity may disclose
additional line items,
headings and subtotals in its financial performance statements
13. (eg as additional
subtotals it could display gross profit, profit or loss from
ordinary activities before
taxation and profit before tax) when such presentation is
relevant to understanding
the entity’s financial performance.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 4
Presentation of total comprehensive income
5.2 An entity shall present its total comprehensive income for a
period either:
(a) in a single statement of comprehensive income, in which
case the statement of
comprehensive income presents all items of income and expense
recognised in the
period, or [Refer: paragraphs 5.4–5.6 and 5.8–5.10]
(b) in two statements—an income statement and a statement of
comprehensive
income—in which case the income statement presents all items
of income and
expense recognised in the period except those that are
recognised in total
comprehensive income outside of profit or loss as permitted or
14. required by this
IFRS. [Refer: paragraphs 5.7–5.10]
Notes
The choice presented in paragraph 5.2 (ie single-statement
approach or a
two-statement approach) is an accounting policy choice.
Paragraph 10.7 requires an
entity to select and apply its accounting policies consistently.
Moreover, an entity
cannot change its accounting policy unless the change would
result in its financial
statements providing reliable and more relevant information
about the effects of
transactions, other events or conditions on the entity’s financial
position, financial
performance or cash flows (see paragraph 10.8(b)).
5.3 A change from the single-statement approach to the two-
statement approach, or vice
versa, is a change in accounting policy to which Section 10
Accounting Policies,
Estimates and Errors applies.
Notes
In accordance with Section 10 comparative figures are restated
in financial statements
following a change from a single-statement approach to a two-
statement approach, or
15. vice versa.
Single-statement approach
5.4 Under the single-statement approach, the statement of
comprehensive income shall
include all items of income and expense recognised in a period
unless this IFRS requires
otherwise. This IFRS provides different treatment for the
following circumstances:
(a) The effects of corrections of errors and changes in
accounting policies are
presented as retrospective adjustments of prior periods rather
than as part of profit or
loss in the period in which they arise (see Section 10).
[Refer: paragraph 5.8]
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 5
Example – retrospective adjustments
Ex 1 During 20X7, after the entity’s 20X6 financial statements
were approved for issue,
the entity discovered a computational error in the calculation of
depreciation
16. expense for the year ended 31 December 20X6 (ie profit before
tax for the year
ended 31 December 20X6 is overstated by CU7,800, with a
resultant CU1,950
overstatement of income tax expense).
The entity’s statement of comprehensive income for the year
ended 31 December 20X7
could be presented as follows:
An entity – statement of comprehensive income for the year
ended 31 December 20X7
20X7 20X6
Restated
CU CU
Revenue 680,000 525,000
Other income 54,000 32,000
Changes in inventories of finished goods and work in progress
23,520 25,620
Raw material and consumables used (428,000) (299,800)
Employee benefits expense (78,000) (76,000)
Depreciation and amortisation expense (20X6: previously stated
CU21,200) (25,600) (29,000)
Impairment of property, plant and equipment – (3,200)
Other expenses (4,500) (3,250)
17. Finance costs (22,300) (19,700)
Share of profit of associates 42,100 38,560
Profit before tax (20X6: previously stated CU198,030) 241,220
190,230
Income tax expense (20X6: previously stated CU49,508)
(60,305) (47,558)
Profit/Total comprehensive income for the year (20X6:
previously
stated CU148,522) 180,915 142,672
(b) Three types of other comprehensive income are recognised
as part of total
comprehensive income, outside of profit or loss, when they
arise:
(i) some gains and losses arising on translating the financial
statements of a
foreign operation (see Section 30 Foreign Currency
Translation).
(ii) some actuarial gains and losses (see Section 28 Employee
Benefits).
(iii) some changes in fair values of hedging instruments (see
Section 12 Other
Financial Instruments Issues).
18. Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 6
Example – other comprehensive income
Ex 2 The statement of comprehensive income of an entity could
be presented in a single
statement as follows:
An entity’s statement of comprehensive income for the year
ended 31 December 20X8
20X8 20X7
CU CU
Revenue 645,000 499,500
Cost of sales (500,000) (400,000)
Distribution costs (50,000) (30,000)
Administrative expenses (30,000) (15,000)
Finance costs (10,000) (5,000)
Profit before tax 55,000 49,500
Income tax expense (13,750) (12,375)
19. Profit for the year 41,250 37,125
Other comprehensive income:
Exchange differences on translating foreign operations, net of
tax 10,260 (22,360)
Change in the fair value of hedging instruments, net of tax
(3,800) 4,750
Reclassified losses on hedging instrument to profit or loss (720)
(520)
Other comprehensive income for the year, net of tax 5,740
(18,130)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 46,990
18,995
5.5 As a minimum, an entity shall include, in the statement of
comprehensive income, line
items that present the following amounts for the period:
(a) revenue [Refer: paragraph 2.25 (a)].
(b) finance costs.
(c) share of the profit or loss of investments in associates (see
Section 14 Investments
in Associates) and jointly controlled entities (see Section 15
Investments in Joint
Ventures) accounted for using the equity method [Refer:
paragraphs 14.8 and 15.13].
20. (d) tax expense excluding tax allocated to items (e), (g) and (h)
below (see paragraph
29.27).
(e) a single amount comprising the total of
(i) the post-tax profit or loss of a discontinued operation, and
(ii) the post-tax gain or loss recognised on the measurement to
fair value less costs
to sell or on the disposal of the net assets constituting the
discontinued operation.
(f) profit or loss (if an entity has no items of other
comprehensive income, this line need
not be presented).
(g) each item of other comprehensive income (see paragraph
5.4(b)) classified by nature
(excluding amounts in (h)).
(h) share of the other comprehensive income of associates and
jointly controlled entities
accounted for by the equity method.
(i) total comprehensive income (if an entity has no items of
other comprehensive
income, it may use another term for this line such as profit or
loss).
Module 5 – Statement of Comprehensive Income
and Income Statement
21. IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 7
Example – statement of comprehensive income
Ex 3 A group (a parent and its wholly-owned subsidiary) that
follows a single-statement
approach to present its financial performance could prepare its
statement of
comprehensive income as follows:
A group’s statement of comprehensive income for the year
ended 31 December 20X7
Note 20X7 20X6
CU CU
Revenue 10 680,000 525,000
Cost of sales (400,000) (300,000)
Distribution costs (8,580) (5,830)
Administrative expenses (50,000) (40,000)
Finance costs 11 (22,300) (19,700)
Share of profit of associates 12 42,100 38,560
Profit before tax 13 241,220 198,030
22. Income tax expense 14 (60,305) (49,508)
Profit for the year from continuing operations 180,915 148,522
Loss for the year from discontinued operations 15 (24,780) –
Profit for the year 156,135 148,522
Other comprehensive income:
Exchange differences on translating foreign operations, net
of tax 16 10,260 (22,360)
Actuarial gains on defined benefit pension obligations, net of
tax 17 (720) (520)
Share of associates’ other comprehensive income 13 (3,800)
4,750
Other comprehensive income for the year, net of tax 18 5,740
(18,130)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
161,875 130,392
Notes – discontinued operations
In the Glossary to the IFRS for SMEs a discontinued operation
is defined as a component
of an entity that either has been disposed of, or is held for sale,
and
23. (a) represents a separate major line of business or geographical
area of operations,
(b) is part of a single co-ordinated plan to dispose of a separate
major line of business
or geographical area of operations, or
(c) is a subsidiary acquired exclusively with a view to resale.
Furthermore, a component of an entity is defined as operations
and cash flows that
can be clearly distinguished, operationally and for financial
reporting purposes, from
the rest of the entity.
The sale of a component of an entity is not necessarily a
discontinued operation. For it
to be a discontinued operation the operation sold must represent
a separate major line
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 8
of business or geographical area of operations.
Section 27 Impairment of Assets identifies ‘plans to discontinue
or restructure the
operation to which an asset belongs’ and ‘plans to dispose of an
asset before the
previously expected date’ as internal sources of information that
24. indicate that an asset
may be impaired. The existence of such indicators compels the
entity to perform an
impairment test on the asset (see paragraph 27.7).
When an entity expects to recover the carrying amount of the
assets of a discontinued
operation through sale, the value in use of those assets would
approximate their fair
value less costs to sell. To the extent, if any, that the carrying
amount of the assets
exceeds their recoverable amount an impairment loss is
recognised.
Paragraph 5.5(e)(ii) requires the resulting impairment loss, if
any, on the assets of a
discontinued operation to be included in the discontinued
operations line-item
presented in the statement of comprehensive income.
Example – presenting a discontinued operation
Ex 4 An entity operates two separate major lines of business—
candle manufacturing and
clothing retailing.
On 30 December 20X2, in response to an unsolicited offer, an
entity disposed of its
candle-making operation for CU1,000,000 when the carrying
amount of the
operation’s assets were—factory building CU400,000,
machinery CU300,000 and
trade mark CU200,000. For simplicity it is assumed that the
candle-making
25. operation has no other assets or liabilities. CU20,000 income
tax is payable on the
gain on disposal of the plant.
The candle-making plant recognised a profit after tax of
CU150,000 for the year
ended 31 December 20X2 (20X1: CU250,000).
An entity’s statement of comprehensive income for the year
ended 31 December 20X2
20X2 20X1
CU CU
…
Profit for the year from continuing operations
Profit for the year from discontinued operation 230,000
(a)
250,000
Profit for the year
…
(a)
CU1,000,000 proceeds on disposal less CU400,000 building less
CU300,000 machinery less
CU200,000 trade mark = CU100,000 profit on disposal.
CU100,000 less CU20,000 tax = CU80,000 profit after tax from
disposal of the discontinued operation.
26. CU80,000 + CU150,000 post-tax profit from discontinued
operation = CU230,000 total post-tax profit
from discontinued operation.
Ex 5 The facts are the same as in example 4. However, in this
example, although the
management of the entity is committed to a single co-ordinated
plan to dispose of
its candle-making operation it had not yet finalised the sale of
the operation.
At 31 December 20X2 it estimated the fair value less costs to
sell of the
candle-making operation’s assets at CU1,000,000.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 9
An entity’s statement of comprehensive income for the year
ended 31 December 20X2
20X2 20X1
CU CU
27. …
Profit for the year from continuing operations
Profit for the year from discontinued operation 150,000
(a)
250,000
Profit for the year
…
(a)
CU150,000 post-tax profit of the discontinued operation.
The decision to sell the operation indicates that the assets might
be impaired. Therefore the
non-current assets of the candle-making operation would be
tested for impairment at 31 December
20X2 in accordance with Section 27. The fair value less costs
to sell of the cash-generating unit’s
assets (CU1,000,000) exceeds their carrying amount (ie
CU400,000 building + CU300,000 machinery
+ CU200,000 trade mark = CU900,000). Therefore no
impairment loss would result from the
impairment test.
Ex 6 The facts are the same as in example 5. However, in this
example, the fair value
28. less costs to sell of the candle-making operation’s assets at 31
December 20X2 is
estimated to be CU800,000. Assume a 20 per cent tax effect in
respect of the
impairment, if any.
An entity’s statement of comprehensive income for the year
ended 31 December 20X2
20X2 20X1
CU CU
…
Profit for the year from continuing operations
Profit for the year from discontinued operation 70,000
(a)
250,000
Profit for the year
…
(a)
In accordance with Section 27, the decision to sell assets
triggers an impairment test of those assets
at 31 December 20X2—CU900,000 carrying amount of assets
before impairment less CU800,000 fair
value less costs to sell = CU100,000 impairment loss.
CU100,000 less tax effect of the impairment
29. loss CU20,000 = CU80,000 post-tax impairment loss.
CU150,000 post-tax profit from discontinued operation before
impairment less CU80,000 post-tax
impairment loss = CU70,000 total post-tax profit from
discontinued operation.
5.6 An entity shall disclose separately the following items in
the statement of comprehensive
income as allocations for the period:
(a) profit or loss for the period attributable to
(i) non-controlling interest.
(ii) owners of the parent.
(b) total comprehensive income for the period attributable to
(i) non-controlling interest.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 10
(ii) owners of the parent.
Example – separate disclosure in the statement of
30. comprehensive income
Ex 7 The facts are the same as in example 3. However, in this
example, the parent owns
only 90 per cent of the equity of its subsidiary. The
subsidiary’s profit for the year
ended 31 December 20X7 is CU50,000 (20X6: CU40,000). The
subsidiary’s total other
comprehensive income is a gain of CU3,000 for the year ended
31 December 20X7
(20X6: a loss of CU2,000).
In addition to the line items presented in the answer to example
3, the group would
present the following:
A group’s consolidated statement of comprehensive income for
the year ended 31 December 20X7
20X7 20X6
CU CU
…
Profit attributable to:
Owners of the parent 151,135 144,522
Non-controlling interests 5,000 4,000
156,135 148,522
31. Total comprehensive income attributable to:
Owners of the parent 156,575 126,592
Non-controlling interests 5,300 3,800
161,875 130,392
Two-statement approach
5.7 Under the two-statement approach, the income statement
shall display, as a minimum,
line items that present the amounts in paragraph 5.5(a)–5.5(f)
for the period, with profit or
loss as the last line. The statement of comprehensive income
shall begin with profit or
loss as its first line and shall display, as a minimum, line items
that present the amounts
in paragraph 5.5(g)–5.5(i) and paragraph 5.6 for the period.
Example – two-statement approach
Ex 8 The facts are the same as in example 7. However, in this
example, the group
follows the two-statement approach to present its financial
performance.
The group could prepare its separate income statement and
separate statement of
comprehensive income as follows:
Module 5 – Statement of Comprehensive Income
32. and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 11
A group’s consolidated income statement for the year ended 31
December 20X7
Note 20X7 20X6
CU CU
Revenue 10 680,000 525,000
Cost of sales (400,000) (300,000)
Distribution costs (8,580) (5,830)
Administrative expenses (50,000) (40,000)
Finance costs 12 (22,300) (19,700)
Share of profit of associates 13 42,100 38,560
Profit before tax 241,220 198,030
Income tax expense 14 (60,305) (49,508)
Profit for the year from continuing operations 180,915 148,522
Loss for the year from discontinued operations 15 (24,780) –
PROFIT FOR THE YEAR 156,135 148,522
33. Profit for the year is attributable to:
Owners of the parent 151,135 144,522
Non-controlling interests 5,000 4,000
156,135 148,522
A Group – consolidated statement of comprehensive income for
the year ended 31 December 20X7
Note 20X7 20X6
CU CU
Profit for the year 156,135 148,522
Other comprehensive income:
Exchange differences on translating foreign operations,
net of tax 16 10,260 (22,360)
Actuarial gains on defined benefit pension obligations,
net of tax 17 (720) (520)
Share of associates other comprehensive income 13 (3,800)
4,750
Other comprehensive income for the year, net of tax 18 5,740
(18,130)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
161,875 130,392
34. Total comprehensive income for the year is attributable to:
Owners of the parent 156,575 126,592
Non-controlling interests 5,300 3,800
161,875 130,392
Requirements applicable to both approaches
5.8 Under this IFRS, the effects of corrections of errors and
changes in accounting policies
are presented as retrospective adjustments of prior periods
rather than as part of profit or
loss in the period in which they arise (see Section 10).
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 12
Example – single-statement and two-statement approaches
Ex 9 During 20X8, after the entity’s 20X7 financial statements
were approved for issue,
the entity discovered an error in the calculation of pension
expense. The error
resulted in profit before tax for the year ended 31 December
35. 20X7 being overstated
by CU17,000, with a resultant CU4,250 overstatement of
income tax expense.
The entity’s statement of comprehensive income for the year
ended 31 December 20X8
using the single-statement approach could be presented as
follows:
An entity’s statement of comprehensive income for the year
ended 31 December 20X8
20X8 20X7
Restated
CU CU
Revenue 745,000 693,000
Other income 45,000 36,520
Changes in inventories of finished goods and work in progress
31,000 23,000
Raw material and consumables used (461,000) (342,000)
Employee benefits expense (20X7: previously stated–
CU180,000) (220,000) (197,000)
Depreciation and amortisation expense (45,000) (40,500)
Other expenses (9,000) (8,900)
Finance costs (18,000) (21,320)
36. Profit before tax (20X7: previously stated CU159,800) 68,000
142,800
Income tax expense (20X7: previously stated–CU39,950)
(42,000) (35,700)
PROFIT FOR THE YEAR (20X7: previously stated CU119,850)
26,000 107,100
Other comprehensive income:
Exchange differences on translating foreign operations,
net of tax (3,000) 6,000
Actuarial gains on defined benefit pension obligations,
net of tax 1,000 (2,000)
Other comprehensive income for the year, net of tax (2,000)
4,000
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(20X7: previously stated CU123,850) 24,000 111,100
If the entity used the two-statement approach it would have
presented its financial
performance for the year ended 31 December 20X8 as follows:
Module 5 – Statement of Comprehensive Income
and Income Statement
37. IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 13
An entity’s income statement for the year ended 31 December
20X8
20X8 20X7
Restated
CU CU
Revenue 745,000 693,000
Other income 45,000 36,520
Changes in inventories of finished goods and work in progress
31,000 23,000
Raw material and consumables used (461,000) (342,000)
Employee benefits expense (20X7: previously stated–
CU180,000) (220,000) (197,000)
Depreciation and amortisation expense (45,000) (40,500)
Other expenses (9,000) (8,900)
Finance costs (18,000) (21,320)
Profit before tax (20X7: previously stated CU159,800) 68,000
142,800
Income tax expense (20X7: previously stated –CU39,950)
(42,000) (35,700)
38. PROFIT FOR THE YEAR (20X7: previously stated CU119,850)
26,000 107,100
An entity – statement of comprehensive income for the year
ended 31 December 20X8
20X8 20X7
Restated
CU CU
Profit for the year (20X7: previously stated CU119,850) 26,000
107,100
Other comprehensive income:
Exchange differences on translating foreign operations,
net of tax (3,000) 6,000
Actuarial gains on defined benefit pension obligations,
net of tax 1,000 (2,000)
Other comprehensive income for the year, net of tax (2,000)
4,000
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(20X7: previously stated CU123,850) 24,000 111,100
5.9 An entity shall present additional line items, headings and
39. subtotals in the statement of
comprehensive income (and in the income statement, if
presented), when such
presentation is relevant to an understanding of the entity’s
financial performance.
[Refer: paragraphs 2.23—2.26]
Example – additional line items, headings and subtotals
Ex 10 A retailer may present additional line items (eg gross
profit, profit before tax and
profit from continuing operations) in its consolidated statement
of comprehensive
income because the group’s management believes that such
presentation is
relevant to an understanding of the entity’s financial
performance.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 14
An entity’s statement of comprehensive income for the year
ended 31 December 20X7
Note 20X7 20X6
CU CU
40. Revenue 10 680,000 525,000
Cost of sales (400,000) (300,000)
Gross profit 280,000 225,000
Distribution costs (8,580) (5,830)
Administrative expenses (50,000) (40,000)
Finance costs 11 (22,300) (19,700)
Share of profit of associates 12 42,100 38,560
Profit before tax 13 241,220 198,030
Income tax expense 14 (60,305) (47,508)
Profit for the year from continuing operations 180,915 150,522
Loss for the year from discontinued operations 15 (24,780)
(2,000)
Profit for the year 156,135 148,522
Other comprehensive income:
Exchange differences on translating foreign operations,
net of tax 16 10,260 (22,360)
Actuarial gains on defined benefit pension obligations,
net of tax 17 (720) (520)
41. Share of associates other comprehensive income 13 (3,800)
4,750
Other comprehensive income for the year, net of tax 18 5,740
(18,130)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
161,875 130,392
5.10 An entity shall not present or describe any items of income
and expense as ‘extraordinary
items’ in the statement of comprehensive income (or in the
income statement, if
presented) or in the notes.
Analysis of expenses
5.11 An entity shall present an analysis of expenses using a
classification based on either the
nature of expenses or the function of expenses within the entity,
whichever provides
information that is reliable and more relevant.
Notes
The analysis of expenses (by their nature or function) excludes
finance costs, the
expenses of discontinued operations, income tax and items of
other comprehensive
income. These expenses are presented separately in the
statement of comprehensive
income.
42. Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 15
Analysis by nature of expense
(a) Under this method of classification, expenses are aggregated
in the statement of
comprehensive income according to their nature (eg
depreciation, purchases of
materials, transport costs, employee benefits and advertising
costs), and are not
reallocated among various functions within the entity.
Examples – analysis by nature of expense
Ex 11 A group (a parent and its wholly-owned subsidiary) that
presents its financial
performance using the single-statement approach and presents
an analysis by
nature of expenses in its statement of comprehensive income
could present its
statement of comprehensive income as follows:
A group’s consolidated statement of comprehensive income for
the year ended 31 December 20X7
43. 20X7 20X6
CU CU
Revenue 734,000 557,000
Gain in the fair value of investment property 1,000 500
Changes in inventories of finished goods and work in progress
(26,480) (42,180)
Raw material and consumables used (378,000) (232,000)
Employee benefits expense (78,000) (76,000)
Depreciation and amortisation expense (25,600) (21,200)
Impairment of property, plant and equipment – (3,200)
Advertising costs (3,000) (2,800)
Raw material freight costs (2,000) (750)
Operating lease expense (400) (150)
Finance costs (22,300) (19,700)
Share of associate’s losses (100) (50)
Profit before tax 199,120 159,470
Income tax expense (49,780) (36,868)
Profit for the year from continuing operations 149,340 122,602
Loss for the year from discontinued operations (24,780) (3,000)
44. PROFIT FOR THE YEAR 124,560 119,602
Other comprehensive income:
Exchange differences on translating foreign operations, net of
tax 10,260 (22,360)
Actuarial losses on defined benefit pension plans, net of tax
(720) (520)
Change in the fair value of hedging instruments, net of tax
(3,800) 4,750
Reclassified gains (losses) on hedging instruments to profit or
loss 1,560 (846)
Other comprehensive income for the year, net of tax 7,300
(18,976)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
131,860 100,626
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 16
Analysis by function of expense
(b) Under this method of classification, expenses are aggregated
according to their
function as part of cost of sales or, for example, the costs of
45. distribution or
administrative activities. At a minimum, an entity discloses its
cost of sales under this
method separately from other expenses.
Examples – analysis by function of expenses
Ex 12 The facts are the same as example 11. However, in this
example, the group presents
an analysis by function of expenses. The employee benefit and
depreciation and
amortisation costs are attributable to the factory (50 per cent),
administration
(25 per cent) and distribution (25 per cent). The impairment
loss was in respect of
an item of manufacturing equipment. The operating lease
expense is for a
photocopier used by the group’s sales office staff. The group
could present its
statement of comprehensive income as follows:
A group’s consolidated statement of comprehensive income for
the year ended 31 December 20X7
20X7 20X6
CU CU
Revenue 734,000 557,000
Gain in the fair value of investment property 1,000 500
46. Cost of sales
(a)
(458,280) (326,730)
Distribution costs
(b)
(29,300) (27,250)
Administrative expenses
(c)
(25,900) (24,300)
Finance costs (22,300) (19,700)
Share of associate’s losses (100) (50)
Profit before tax 199,120 159,470
Income tax expense (49,780) (36,868)
Profit for the year from continuing operations 149,340 122,602
Loss for the year from discontinued operations (24,780) (3,000)
PROFIT FOR THE YEAR 124,560 119,602
Other comprehensive income:
Exchange differences on translating foreign operations, net of
tax 10,260 (22,360)
Actuarial losses on defined benefit pension plans, net of tax
47. (720) (520)
Change in the fair value of hedging instruments, net of tax
(3,800) 4,750
Reclassified gains (losses) on hedging instrument to profit or
loss 1,560 (846)
Other comprehensive income for the year, net of tax 7,300
(18,976)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
131,860 100,626
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 17
Calculations that do not form part of the statement of
comprehensive income:
20X7 20X6
(a)
CU26,480 change in inventory levels + CU378,000 raw
materials used + 50%(CU78,000 employee benefits +
48. CU25,600 depreciation) + CU2,000 raw material freight
costs = CU458,280 cost of sales
CU42,180 change in inventory levels + CU232,000 raw
materials used + 50%(CU76,000 employee benefits +
CU21,200 depreciation) + CU3,200 impairment +
CU750 raw material freight costs = CU326,730 cost of
sales
(b)
25%(CU78,000 employee benefits + CU25,600
depreciation) + CU3,000 advertising + CU400 operating
lease expense = CU29,300 distribution costs
25%(CU76,000 employee benefits + CU21,200
depreciation) + CU2,800 advertising + CU150
operating lease expense = CU27,250 distribution costs
(c)
25%(CU78,000 employee benefits + CU25,600
depreciation) = CU25,900 administration costs
25%(CU76,000 employee benefits + CU21,200
depreciation) = CU24,300 administration costs
49. Ex 13 An entity that manufactures concrete blocks for use in the
home building sector
has five vehicles.
Vehicle 1 is used to transport raw materials (sand and cement)
from the entity’s
suppliers to the entity’s raw materials storeroom.
Vehicle 2 is used to transport the raw material from the
storeroom to the factory
floor.
Vehicle 3 is used to transport the blocks from the entity’s
factory to the entity’s
customers.
Vehicle 4 is used by the entity’s sales staff to visit potential
customers to seek
orders.
Vehicle 5 is provided by the entity to its chief administrator for
his personal use.
The use of the vehicle is part of the chief administrator’s
remuneration package.
How should the entity classify depreciation of the vehicles by
function?
The depreciation of vehicles 1 and 2 is classified as cost of
sales when it is recognised as
an expense. Note: in accordance with Section 13 Inventories
this depreciation would first
be recognised as part of the cost of inventories (and asset).
When the inventories are
50. derecognised (eg when they are sold) then the cost of the
inventories (including the
depreciation of vehicles 1 and 2) is recognised as an expense (ie
cost of sales).
The depreciation of vehicles 3 and 4 is classified as a
distribution cost—it relates to the
distribution function of the business.
The depreciation of vehicle 5 is recognised as an administrative
expense—it relates to the
administrative function of the business.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 18
SIGNIFICANT ESTIMATES AND OTHER JUDGEMENTS
In many cases little difficulty is encountered in presenting the
statement of comprehensive
income and income statement in accordance with the IFRS for
SMEs. However, in some cases
significant judgement is required. For example, judgement is
required:
are relevant to an
51. understanding of the entity’s statement of comprehensive
income and income statement
-
tax profit or loss from the
income and expenses of continuing operations
nature) provides information
that is reliable and more relevant
expenses that relate to more
than one function of the entity)
components of some expenses that
include items that are different in nature).
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 19
COMPARISON WITH FULL IFRSs
The main differences between the requirements to present an
entity’s financial performance
(ie comprehensive income) at 9 July 2009 in accordance with
52. full IFRSs (see IAS 1 Presentation of
Financial Statements) and the IFRS for SMEs (see Section 5
Statement of Comprehensive Income and
Income Statement) include:
of income and retained earnings
in place of the statement of comprehensive income and
statement of changes in equity if
the only changes to its equity during the periods for which
financial statements are
presented arise from profit or loss, payment of dividends,
corrections of prior period
errors, and changes in accounting policy (see paragraph 3.18).
This option does not exist in
full IFRSs.
ther
comprehensive income (OCI)—translating
the financial statements of a foreign operation, some changes in
fair values of hedging
instruments and actuarial gains and losses of defined benefit
plans. Full IFRSs have more
items of comprehensive income (eg cumulative changes in the
fair value of
available-for-sale financial assets and gains on the revaluation
of property, plant and
equipment and intangible assets).
some items of OCI (sometimes
called ‘recycling’) when they become realised (eg those in
respect of available-for-sale
financial assets and the translation of foreign operations).
53. Except for specified gains and
losses on hedging instruments (see Section 12 Other Financial
Instrument Issues) the IFRS for
SMEs does not permit reclassification.
function, it is also required to
disclose information on the nature of expenses. The IFRS for
SMEs does not explicitly
require these additional disclosures of expenses by nature.
operations.
-current Assets Held for Sale and
Discontinued Operations) require a
non-current asset held for sale (including the non-current assets
of a discontinued
operation) to be carried at the lower of its carrying amount and
fair value less estimated
costs to sell the asset. The IFRS for SMEs does not require
separate presentation in the
statement of financial position of ‘non-current assets held for
sale’. However, paragraph
27.9 of the IFRS for SMEs identifies ‘plans to discontinue or
restructure the operation to
which an asset belongs’ and ‘plans to dispose of an asset before
the previously expected
date’ as internal sources of information that indicate that an
asset may be impaired. The
existence of such indicators compels the entity to perform an
impairment test on the asset
(ie compute its recoverable amount) (see paragraph 27.7).
Paragraph 4.14 specifies
disclosure requirements when, at the reporting date, an entity
has a binding sale
54. agreement for a major disposal of assets or a group of assets
and liabilities.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 20
TEST YOUR KNOWLEDGE
Test your knowledge of the requirements for presenting a
statement of comprehensive income
and income statement in accordance with the IFRS for SMEs by
answering the questions below.
Once you have completed the test check your answers against
those set out below this test.
Assume all amounts are material.
Mark the box next to the most correct statement.
Question 1
In 20X8, after an entity’s 20X7 financial statements were
approved for issue, the entity
discovered an error in the calculation of depreciation expense.
The error occurred during
20X6. The entity presents one year’s comparative figures. The
55. effect of the correction of the
error in the entity’s 20X8 financial statements will be:
(a) recognised in the entity’s profit or loss for the year ended
31 December 20X8.
(b) recognised in the entity’s profit or loss for the year ended
31 December 20X7.
(c) recognised outside of total comprehensive income, in the
statement of changes in
equity as an adjustment to retained earnings at 1 January 20X7.
Note: Knowledge of the requirements of Section 10 Accounting
Policies, Estimates and Errors of the IFRS for SMEs is required
to
answer question 1. The requirements of Section 10 are set out
in Module 10.
Question 2
Which of the following gains and losses are recognised in other
comprehensive income (ie in
total comprehensive income outside of profit and loss)?
(a) gains and losses from discontinued operations.
(b) gains and losses arising on translating the financial
statements of a foreign operation.
(c) gains on the revaluation of property, plant and equipment.
(d) gains and losses that management considers extraordinary
items.
56. Question 3
Which of the following gains and losses can an entity elect (an
accounting policy choice) to
recognise in other comprehensive income (ie in total
comprehensive income outside of profit
or loss)?
(a) losses from discontinued operations.
(b) gains and losses arising on translating the financial
statements of a foreign operation.
(c) actuarial gains and losses of defined benefit plans.
(d) gains and losses that management considers extraordinary
items.
Note: Knowledge of the requirements of Section 28 Employee
Benefits of the IFRS for SMEs is required to answer question 3.
The requirements of Section 28 are set out in Module 28.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 21
Question 4
Which of the following terms cannot be used to describe a line
57. item in the statement of
comprehensive income?
(a) revenue
(b) gross profit
(c) profit before tax
(d) extraordinary item
Question 5
Which of the following is a discontinued operation?
(a) An entity has three machines located in one plant. All of
the machines produce the
same product. The entity significantly scales down its
operations by disposing of one
of the machines.
(b) An entity has three machines located in one plant. Each
machine produces a
completely different product and each machine is managed as a
separate business
unit. The entity significantly scales down its operations by
disposing of one of the
machines and in doing so discontinues manufacturing one of its
three products.
(c) An entity has three plants that all produce the same product.
Each plant is located in
a separate continent and sells its output to customers local to
the plant in which the
product is manufactured. The entity scales down its operations
by disposing of one of
58. the plants.
(d) Both (b) and (c) above.
(e) Situations (a)–(c).
Question 6
Items of other comprehensive income are presented in the
statement of comprehensive
income analysed:
(a) by nature.
(b) by function.
(c) either by nature or by function (an accounting policy
choice).
(d) both (a) and (b) above.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 22
Question 7
Staff costs are:
(a) administrative expenses.
59. (b) distribution expenses.
(c) cost of sales.
(d) allocated to categories (a)–(c) above according to the
function of the employee to
which the particular staff cost relates.
Question 8
An entity presents an analysis of expenses using a classification
based on:
(a) the nature of expenses.
(b) the function of expenses.
(c) either the nature of expenses or the function of expenses
within the entity, whichever
provides information that is reliable and more relevant.
(d) either the nature of expenses or the function of expenses
within the entity, whichever
the entity would prefer to present.
Question 9
Separate line items in an analysis of expenses by nature include:
(a) purchases of materials, transport costs, employee benefits,
depreciation, extraordinary
items.
(b) purchases of materials, distribution costs, administrative
costs, employee benefits,
depreciation, taxes.
60. (c) depreciation, purchases of materials, employee benefits and
advertising costs.
(d) cost of sales, administrative costs, transport costs,
distribution costs etc.
Question 10
Separate line items in an analysis of expenses by function
include:
(a) purchases of materials, transport costs, employee benefits,
depreciation, extraordinary
items.
(b) purchases of materials, distribution costs, administrative
costs, employee benefits,
depreciation, taxes.
(c) depreciation, purchases of materials, employee benefits and
advertising costs.
(d) cost of sales, administrative expenses, distribution expenses
etc.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 23
Answers
61. Q1 (c) see paragraphs 5.4(a) and 5.8
Q2 (b) see paragraph 5.4(b)(i)
Q3 (c) see paragraphs 5.4(b)(ii) and 28.24(b)
Q4 (d) see paragraph 5.10
Q5 (d) see the definitions of a discontinued operation and
component of an entity in the
Glossary
Q6 (a) see paragraph 5.5(g)
Q7 (d) see paragraph 5.11(b)
Q8 (c) see paragraph 5.11
Q9 (c) see paragraph 5.11(a)
Q10 (d) see paragraph 5.11(b)
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 24
APPLY YOUR KNOWLEDGE
Apply your knowledge of the requirements for presenting a
statement of comprehensive
income and income statement in accordance with the IFRS for
SMEs by solving the case studies
below.
Once you have completed the case studies check your answers
against those set out below this
test.
62. Case study 1
SME A Group (parent and its 75 per cent owned subsidiary)
presents the consolidated
statement of comprehensive income following the single-
statement approach.
SME A Group
Statement of comprehensive income at 31 December 20X8
20X8
Revenue 20,000
(a)
Cost of sales (7,000)
(b)
Distribution costs (1,000)
(c)
Administrative expenses (4,000)
(d)
Other expenses (2,500)
(e)
Extraordinary item (500)
(f)
Finance costs (1,000)
(g)
63. Profit before tax 4,000
Income tax expense (1,600)
(h)
Dividend declared and paid (400)
(i)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 2,000
Notes that do not form part of the statement of comprehensive
income prepared by the group’s management.
Parent Subsidiary Total
All amounts presented in CUs
Continuing
operation
Discontinued
operation
(a) Increase in fair value of investment
property 3,000
Sale of goods 10,000 1,500 5,000
Gain on disposal of discontinued
64. operation 500
Revenue 13,500 1,500 5,000 20,000
(b) Cost of sales 4,000 1,000 2,000 7,000
(c) Distribution costs 100 500 400 1,000
(d) Administrative expenses 2,000 1,000 1,000 4,000
(e) Advertising costs 1,000
Actuarial losses on defined benefit plans 700 800
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 25
Parent Subsidiary Total
Continuing
operation
Discontinued
operation
Other expenses 1,700 800 2,500
(f) Impairment of a sales office equipment 500 500
(g) Finance costs 500 500 1,000
(h) All items of income and expense are
subject to tax (deferred and current) at
40 per cent of the amount of the income
65. or expense.
(i) Dividend declared and paid 400 400
The parent raised CU1,000 from the owners of the parent during
20X8 by issuing shares to the
owners of the parent.
The group follows an accounting policy of recognising actuarial
gains and losses on its defined
benefit obligations in other comprehensive income.
Part A: List the errors and omissions in the presentation of SME
A Group’s consolidated
statement of comprehensive income for the year ended 31
December 20X8.
Part B: Prepare SME A Group’s financial performance
statements for the year ended
31 December 20X8 using the single-statement approach.
Ignore comparative figures.
Part C: Prepare SME A Group’s financial performance
statements for the year ended
31 December 20X8 using the two-statement approach.
Ignore comparative figures.
66. Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 26
Answer to case study 1: Part A
Errors in the consolidated statement of comprehensive income
presented by the SME A group
for the year ended 31 December 20X8 include:
1. The text ‘Consolidated’ is missing from the title (ie the title
should read ‘Consolidated
statement of comprehensive income’.
2. The statement of comprehensive income must be presented
‘for the year ended
31 December 20X8’ (not ‘at’ 31 December 20X8).
3. The presentation currency should be disclosed (ie CU or
currency units).
4. The level of rounding of the amounts presented should be
disclosed.
5. At least one year’s comparative information must be
presented for each line item of the
statement of comprehensive income (see paragraph 3.14).
6. No items of income or expense should be described as
‘extraordinary items’
(see paragraph 5.10).
7. A separate line item ‘discontinued operations’ must be
presented presenting the post-tax
loss from the discontinued operation including the gain on
disposal of the discontinued
67. operations (see paragraph 5.5(e)).
8. A line item ‘profit for the year’ must be presented after
discontinued operations but before
other comprehensive income (see paragraph 5.5(f)).
9. a separate part of the statement of comprehensive income
(below profit for the year)
should be dedicated to other comprehensive income.
10. The group must disclose separately the allocation of profit
or loss to the non-controlling
interests and the owners of the parent (see paragraph 5.6(a)).
11. The group must disclose separately the allocation of total
comprehensive income for the
period attributable to non-controlling interests and owners of
the parent
(see paragraph 5.6(b).
12. The amount of each item of other comprehensive income (ie
actuarial losses on defined
benefit plans) must be disclosed separately.
13. The entity should disclose separately the aggregate current
and deferred tax relating to
items of other comprehensive income (see paragraphs 5.5(d) and
29.32(a)).
14. Dividends declared and paid must not be presented in the
statement of comprehensive
income.
15. The entity must present additional line items, headings and
subtotals when such
presentation is relevant to an understanding of the entity’s
68. financial performance (see
paragraph 5.9).
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 27
The calculations and explanatory notes below do not form part
of the answer to this case study:
(a) CU10,000 parent + CU5,000 subsidiary = CU15,000.
(b) CU4,000 parent + CU2,000 subsidiary = CU6,000.
(c) Examples of additional line items, headings or subtotals that
an entity presents when such presentation is
relevant to an understanding of the entity’s financial
performance (see paragraph 5.9).
(d) CU100 parent + CU1,000 advertising costs + CU500
impairment of sales office equipment + CU400
subsidiary = CU2,000.
(e) CU2,000 parent + CU1,000 subsidiary = CU3,000.
Answer to case study 1: Part B
69. SME A Group – consolidated statement of comprehensive
income for the year ended 31 December 20X8
(all amounts in currency units)
20X8
Revenue 15,000
(a)
Cost of goods sold (6,000)
(b)
Gross profit 9,000
(c)
Other income—increase in the fair value of investment property
3,000
Distribution costs (2,000)
(d)
Administration expenses (3,000)
(e)
Finance costs (1,000)
(f)
70. Profit before tax 6,000
(c)
Income tax expense (2,400)
(g)
Profit for the year from continuing operations 3,600
(c)
Loss for the year from a discontinued operation (300)
(h)
PROFIT FOR THE YEAR 3,300
Other comprehensive income for the year, net of tax:
Actuarial gains on defined benefit pension obligations, net of
tax (900)
(i)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 2,400
Profit attributable to:
71. Owners of the parent 3,135 (l)
Non-controlling interests 165 (m)
3,300
Total comprehensive income attributable to:
Owners of the parent 2,355
(o)
Non-controlling interests 45
(p)
2,400
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 28
(f) CU500 parent + CU500 subsidiary = CU1,000.
(g) 40%(CU6,000 consolidated profit before tax) = CU2,400.
72. (h) CU300
(j)
post-tax gain on the sale of a discontinued operation less
CU600
(i)
post-tax loss of a discontinued
operation = CU300 line item ‘loss for the year from a
discontinued operation’.
(i) CU1,500 revenue less CU1,000 cost of sales less CU500
distribution costs less CU1,000 administration
costs = CU1,000 loss of a discontinued operation. CU1,000 less
(40% of CU1,000) tax = CU600 post-tax
loss of a discontinued operation.
(j) CU500 gain on disposal of discontinued operation less (40%
of CU500) tax = CU300 post-tax gain on
disposal of a discontinued operation.
(k) CU700 parent + CU800 subsidiary = CU1,500 actuarial
losses before tax. CU1,500 less (40% of CU1,500)
tax = CU900 post-tax actuarial losses.
(l) CU2,640
(n)
parent’s profit for the year + 75%(CU660
(m)
subsidiary’s profit for the year) = CU3,135.
(m) 25%(CU660
(n)
73. subsidiary’s profit for the year) = CU165.
(n) Parent Subsidiary Total
CU CU CU
Revenue 10,000 5,000 15,000
Increase in fair value of investment property 3,000 – 3,000
Cost of sales (4,000) (2,000) (6,000)
Distribution costs (1,600) (400) (2,000)
Administrative expenses (2,000) (1,000) (3,000)
Finance costs (500) (500) (1,000)
Profit before tax 4,900 1,100 6,000
Tax expense (40% of profit before tax) (1,960) (440) (2,400)
Profit from continuing operations 2,940 660 3,600
Loss for the year from a discontinued operation (300) – (300)
PROFIT FOR THE YEAR 2,640 660 3,300
(o) CU2,220
(q)
parent’s total comprehensive income for the year + 75%
(CU180
(q)
subsidiary’s total
comprehensive income for the year) = CU2,355.
(p) 25% × (CU180
(q)
subsidiary’s total comprehensive income for the year) = CU45.
(q) Parent Subsidiary Total
CU CU CU
Profit for the year (see
74. (m)
above) 2,640 660 3,300
Other comprehensive income—actuarial losses on
defined benefit plans (700) (800) (1,500)
Income tax effect of actuarial losses (40%) 280 320 600
Total other comprehensive income for the year,
net of tax (420) (480) (900)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 2,220
180 2,400
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 29
Answer to case study 1: Part C
SME A Group – consolidated statement of comprehensive
income for the year ended 31 December 20X8
(all amounts in currency units)
20X8
75. PROFIT FOR THE YEAR 3,300
Other comprehensive income for the year, net of tax:
Actuarial gains on defined benefit pension obligations, net of
tax (900)
(j)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 2,400
Total comprehensive income attributable to:
Owners of the parent 2,355
(n)
Non-controlling interests 45
(o)
2,400
76. SME A Group – consolidated income statement for the year
ended 31 December 20X8
(all amounts in currency units)
20X8
Revenue 15,000
(a)
Cost of goods sold (6,000)
(b)
Gross profit 9,000
Other income—increase in the fair value of investment property
3,000
Distribution costs (2,000)
(c)
Administration expenses (3,000)
(d)
Finance costs (1,000)
(e)
Profit before tax 6,000
77. Income tax expense (2,400)
(f)
Profit for the year from continuing operations 3,600
Loss for the year from a discontinued operation (300)
(g)
PROFIT FOR THE YEAR 3,300
Profit attributable to:
Owners of the parent 3,135 (k)
Non-controlling interests 165 (l)
3,300
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 30
78. The calculations and explanatory notes below do not form part
of the answer to this case study:
(a) CU10,000 parent + CU5,000 subsidiary = CU15,000.
(b) CU4,000 parent + CU2,000 subsidiary = CU6,000.
(c) CU100 parent + CU1,000 advertising costs + CU500
impairment of sales office equipment + CU400
subsidiary = CU2,000.
(d) CU2,000 parent + CU1,000 subsidiary = CU3,000.
(e) CU500 parent + CU500 subsidiary = CU1,000.
(f) 40%(CU6,000 consolidated profit before tax) = CU2,400.
(g) CU300
(i)
post-tax gain on the sale of a discontinued operation less
CU600
(h)
post-tax loss of a discontinued
operation = CU300 line item ‘loss for the year from a
discontinued operation’.
(h) CU1,500 revenue less CU1,000 cost of sales less CU500
distribution costs less CU1,000 administration
costs = CU1,000 loss of a discontinued operation. CU1,000 less
(40% of CU1,000) tax = CU600 post-tax
79. loss of a discontinued operation.
(i) CU500 gain on disposal of discontinued operation less (40%
of CU500) tax = CU300 post-tax gain on
disposal of a discontinued operation.
(j) CU700 parent + CU800 subsidiary = CU1,500 actuarial
losses before tax. CU1,500 less (40% of CU1,500)
tax = CU900 post-tax actuarial losses.
(k) CU2,640
(m)
parent’s profit for the year + 75% (CU660
(m)
subsidiary’s profit for the year) = CU3,135.
(l) 25%(CU660
(m)
subsidiary’s profit for the year) = CU165.
(m) Parent Subsidiary Total
CU CU CU
Revenue 10,000 5,000 15,000
Increase in fair value of investment property 3,000 3,000
Cost of sales (4,000) (2,000) (6,000)
Distribution costs (1,600) (400) (2,000)
Administrative expenses (2,000) (1,000) (3,000)
Finance costs (500) (500) (1,000)
Profit before tax 4,900 1,100 6,000
Tax expense (40% of profit before tax) (1,960) (440) (2,400)
80. Profit from continuing operations 2,940 660 3,600
Loss for the year from a discontinued operation (300) (300)
PROFIT FOR THE YEAR 2,640 660 3,300
(n) CU2,220
(p)
parent’s total comprehensive income for the year + 75%(CU180
(p)
subsidiary’s total
comprehensive income for the year) = CU2,355.
(o) 25%(CU180
(p)
subsidiary’s total comprehensive income for the year) = CU45.
(p) Parent Subsidiary Total
CU CU CU
Profit for the year (see
(m)
above) 2,640 660 3,300
Other comprehensive income—actuarial losses on
defined benefit plans (700) (800) (1,500)
Income tax effect of actuarial losses (40%) 280 320 600
Total other comprehensive income for the year,
net of tax (420) (480) (900)
81. TOTAL COMPREHENSIVE INCOME FOR THE YEAR 2,220
180 2,400
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 31
Case study 2
SME B Group (parent and its wholly-owned subsidiary) presents
the statement of
comprehensive income following the single-statement approach.
SME B Group presented its
consolidated statement of comprehensive income in its financial
statements for the year
ended 31 December 20X4 as follows.
SME B Group – consolidated statement of comprehensive
income for the year ended 31 December
20X4
(in thousands of currency units)
20X4 20X3
Revenue 56,231 57,896
Cost of sales (25,976) (17,346)
Other income 987 145
82. Distribution costs (2,156) (2,278)
Administrative expenses (15,436) (15,987)
Other expenses (960) (1,010)
Finance costs (689) (702)
Profit before tax 12,001 20,718
Income tax expense (2,700) (5,180)
PROFIT FOR THE YEAR 9,301 15,538
Other comprehensive income:
Exchange differences on translating foreign operations, net of
tax 340 (180)
Changes in the fair value of hedging instruments, net of tax (80)
(91)
Transferred to profit or loss (33) 37
Other comprehensive income for the year, net of tax 227 (234)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 9,528
15,304
In 20X5, following a comprehensive assessment of the group’s
presentation policies,
management decided to classify expenses by nature.
83. Management expects that the analysis by
function will provide information that is more relevant and
more reliable—because the
allocation of the costs to functions required arbitrary
allocations.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 32
An analysis of the group’s income and expenses for the 20X5
and 20X4 reporting period is set
out below (in thousands of currency units):
20X5 20X4
Revenue 55,457 56,231
Other income 534 987
84. Cost of sales:
Materials (10,568) (9,987)
Change in inventory (1,345) (3,000)
Wages, salaries and benefits (8,890) (8,234)
Depreciation (3,245) (3,120)
Transport (1,010) (990)
Other (640) (645)
TOTAL (25,698) (25,976)
Distribution costs:
Advertising (1,310) (1,156)
Wages, salaries and benefits (1,201) (1,000)
TOTAL (2,511) (2,156)
Administrative expenses:
Wages, salaries and benefits (12,345) (12,404)
Depreciation (2,220) (2,388)
Other (1,008) (644)
TOTAL (15,573) (15,436)
Other expenses (1,010) (960)
85. Finance costs (601) (689)
Income tax expense (2,686) (2,700)
Other comprehensive income:
Exchange differences on translating foreign
operations, net of tax 110 340
Changes in the fair value of hedging instruments,
net of tax (65) (80)
Transferred to profit or loss (7) (33)
Prepare, in compliance with the IFRS for SMEs, SME B
Group’s consolidated statement of
comprehensive income for the year ended 31 December 20X5.
Module 5 – Statement of Comprehensive Income
and Income Statement
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 33
The calculations and explanatory notes below do not form part
of the answer to this case study:
(a) Employee benefits expense (20X5) = CU8,890 + CU1,201 +
CU12,345 = CU22,436.
86. Employee benefits expense (20X4) = CU8,234 + CU1,000 +
CU12,404 = CU21,638.
(b) Depreciation and amortisation expense (20X5) = CU3,245 +
CU2,220 = CU5,465.
Depreciation and amortisation expense (20X4) = CU3,120 +
CU2,388 = CU5,508.
(c) Other expenses (20X5) = CU1,010 + CU640 + CU1,008 +
CU1,010 = CU3,668
Other expenses (20X4) = CU990 + CU645 + CU644 + CU960 =
CU3,239
(d) Finance costs (20X5) = CU601
Finance costs (20X4) = CU689
Answer to case study 2
SME B group presents the following statement of
comprehensive income for the 20X5 classifying expenses by
nature.
SME B Group – Statement of Comprehensive Income for the
year ended 31 December 20X5
(in thousands of currency units)
20X5 20X4
Restated
Revenue 55,457 56,231
87. Other income 534 987
Changes in inventories of finished goods and work in progress
(1,345) (3,000)
Raw material and consumables used (10,568) (9,987)
Employee benefits expense (22,436)
(a)
(21,638)
Depreciation and amortisation expense (5,465)
(b)
(5,508)
Advertising (1,310) (1,156)
Other expenses (3,668)
(c)
(3,239)
Finance costs (601)
(d)
(689)
Profit before tax 10,598 12,001
Income tax expense (2,686) (2,700)
PROFIT FOR THE YEAR
88. (attributable to owners of the parent) 7,912
9,301
Other comprehensive income:
Exchange differences on translating foreign operations, net of
tax 110 340
Changes in the fair value of hedging instruments, net of tax (65)
(80)
Transferred to profit or loss (7) (33)
Other comprehensive income for the year, net of tax 38 227
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(attributable to owners of the parent) 7,950
9,528
Research City Project
BUAD 301
Purpose
You will develop research and problem-solving skills within a
professional context, and learn how to write an extended
argument.
Background
89. You will complete a research city project on a city of your
choice. You will look into the demographics of the city, along
with the needs.
Task
You will complete four requirements (see below).
Expected Student Outcome
You will develop research skills and critical thinking skills.
You will also learn how to identify and target key issues in a
real world setting.
Assessment
I’ll be looking for analysis above all. Look into the issues as
well as at them. Provide context and boundaries to help me
understand exactly what you are trying to say. Grading will
follow the CLASS rubric. I expect mechanical excellence,
flawless format, and a perfect citation style.
Requirements
This assignment has multiple requirements to complete:
Requirement Points Due
Date .
1. MEMO – City Selection 10 points
Tuesday, 9/18, 11:55pm
2. Individual APA Research Report 100 points
Friday, 12/21, 11:55pm
Requirement 1: MEMO City Selection – 10 POINTS
DUE: Tuesday, 9/18, 11:55pm (Upload to TITANium)
Pick a town in one of the following counties (NO EXCEPTIONS
- do not ask me to choose a town in another county):
· Los Angeles
· Orange
· Riverside
90. · San Bernardino
· San Diego
This is the town you will use for your research paper. Once it is
selected, you may not change the town. You will look at the
census data for the town you have chosen and identify their
demographics. You will think of a business you feel would be
beneficial for this town. You can choose a large metropolitan
city, or a smaller suburb. Keep in mind, the larger your town,
the more research and time you will spend to discover
information. In a correctly formatted 1-Page MEMO report
addressed to Dr. Lambe Papoulias in 3rd person point of view:
1. Reasoning to why you chose this town.
2. Describe your selected town in detail, focusing on
demographics (median age, median income, social
demographics, etc.).
3. Identify a particular type of business that you think would
appeal to the majority demographic you have identified. Avoid
suggesting things like franchises. Think about unusual
businesses or services that would particularly appeal to the local
residents. For example, a skatepark might not be the best kind
of business where the majority of people are retirees.
*This is the first Requirement
I chose Riverside city in California since it is the most popular
town in Riverside County. River side town is located along river
Santa Ana in this county. It is also known to be the best
performing town in the citrus industry around California. River
side city consist of a population of 324,722 people as per the
last year’s consensus in the United States. This city is also the
twelfth most popular town in California State. The largest race
that occupies the town is from the Hispanic origin which is 49%
of the total population in the town. Other races include the
Asians, Non-Hispanic whites, Black Americans and others from
unknown origins who occupy the least parts of the town.
Of the River side population, the middle age between 25-45 is
91. the largest seconded by the age below eighteen years and the
least is the old age above 65 years. In comparison with gender
the female occupy 50.39% and the male occupy 49.61% of the
population. The total median age is 31.4, male median age is
30.5 and that of the female is 32.4.The type of households that
occupy River side city are married the largest with 50.1%, non-
family 27%, female 15.4% and male6.9%.Most of the people on
this town, they are high school graduates who happen to be from
the White’s Hispanic origin. The most spoken language by
residents in River side town is English. The Black Americans
record the highest numbers on poverty basis than other races in
the town. The River side city records a household Median
income of $58,979 where the married families have the highest
median. In this city the labor force employment status has the
highest percentage followed by the employed and least of the
population here in unemployed.
An example of a business would properly fit the demographic of
River side town of that of a golf club with all kind of
recreational and sport activities. Most of the middle age which
happens to be largest of the population in this town enjoys
swimming, gym practice and playing other kinds of games like
football, volleyball and golf playing among others. The golf
club will also offer recreational activities for children such that
the customers getting their services can be accompanied by their
kids.
Since the majority of the Riverside City like outside activities,
such as swimming, gym practice, and playing other kinds of
games like football, volleyball and golf playing among others.
The business of developing a gold club in the city will help the
community towards maintaining the health of the middle-aged
people in the community. The community of the Riverside will
also benefit due to different entities of community integration
and interaction in the community.
The community now is focusing on how to improve and meet a
92. healthy lifestyle. To consider a golf club, as a mayor of the city,
it is important to understand the value of health for the
community. The highest population in the city is comprised of
middle-aged people. The middle-aged people offer a lot to the
community not only from the socio-economic perspective, but
also, on how to lead a healthier lifestyle for the community and
by the community.
The community of Riverside City will benefit a lot from this
project. This will enhance a socio-economic activity and source
of employment. Developing a sporting complex will also
interest and attract potential investors seeking new business
opportunities in health living and lifestyle. The community also
benefit in form of revenue generated from the sporting complex
and this will be a solution for generating income for the city
and helping into the potential of the community towards
improving its social development. As a result, the golf club is a
solution for helping the community to live a healthier lifestyle.
93. Requirement 2: Individual APA Research Paper – 100 Points
DUE: Friday, 12/21, 11:55pm (Upload to TITANium)
THIS IS AN INDIVIDUAL PROJECT. EACH STUDENT MUST
COMPLETE AN APA RESEARCH REPORT.
You will write a report discussing your city, the business you
selected for your city, and analyzing the business for your
selected city. You will provide an argument letting the reader
know why the business you selected would be a good fit for the
city you chose. As you are learning in BUAD 301, it is
important to make sure to provide solutions with information to
back up your reasoning.
A minimum of 8 outside sources are required for your APA
report (published and credible sites ONLY – No Wikepedia or
webpages). Use any sources that seem appropriate, but make
sure you go beyond the surface. Learn what you can about the
town’s history. What direction are they going in? Is there a
social or political climate that you should account for? What do
residents want in their community? After all, there’s no point in
recommending a skate park for a community populated by
retirees. Keep track of your sources: cite them in the text and
list them in your References. Incorrect attribution causes a
substantial reduction in your report grade.
Format
You must write your report in APA format. You should be
familiar with writing in APA style. If you are not, or would like
a refresher, please visit the following website to familiarize
yourself with the APA writing style:
https://owl.english.purdue.edu/owl/section/2/10/
Additional requirements:
· Must be in APA format – NO MEMOs. You will need a title
page in APA format.
94. · The text of the report should be double-spaced, font 11 or 12,
1 inch margins, 6 pages minimum (does not include title page or
reference page).
· Use titles for each section; be creative - City Background
Information, Future of City, Planned Business for City,
Business Background and Success, Business Idea, etc.
· Include a REFERENCE page with at least eight citations in
standard APA style (you can use surveys and interviews as well
if you like). They must be as current as possible. The reference
page and the title page do not count as part of the minimum of 6
pages.
· Proofread carefully and SPELLCHECK.
· Make sure to write in third person.
· You must include a SWOT analysis for your business (include
an actual SWOT Analysis chart)
2009
IASC Foundation: Training Material for the IFRS® for SMEs
Module 4 – Statement
of Financial Position
IASC Foundation: Training Material
for the IFRS® for SMEs
including the full text of
95. Section 4 Statement of Financial Position
of the International Financial Reporting Standard (IFRS)
for Small and Medium-sized Entities (SMEs)
issued by the International Accounting Standards Board on 9
July 2009
with extensive explanations, self-assessment questions and case
studies
International Accounting Standards Committee Foundation®
30 Cannon Street
London EC4M 6XH
United Kingdom
Telephone: +44 (0)20 7246 6410
Fax: +44 (0)20 7246 6411
Email:[email protected]
Publications Telephone: +44 (0)20 7332 2730
Publications Fax: +44 (0)20 7332 2749
Publications Email: [email protected]
Web: www.iasb.org
97. materials to incorporate into your own documentation.
These trade marks include, but are not limited to, the IASC
Foundation and IASB names and logos.
When you copy any extract, in whole or in part, from a module
of the IASC Foundation training material, you must
ensure that your documentation includes a copyright
acknowledgement that the IASC Foundation is the source of
your training material. You must ensure that any extract you
are copying from the IASC Foundation training
material is reproduced accurately and is not used in a
misleading context. Any other proposed use of the IASC
Foundation training materials will require a licence in writing.
Please address publication and copyright matters to:
IASC Foundation Publications Department
30 Cannon Street London EC4M 6XH United Kingdom
Telephone: +44 (0)20 7332 2730 Fax: +44 (0)20 7332 7249
Email:[email protected] Web: www.iasb.org
The IASC Foundation, the authors and the publishers do not
accept responsibility for loss caused to any person who
acts or refrains from acting in reliance on the material in this
publication, whether such loss is caused by negligence
or otherwise.
The IASB logo/the IASCF logo/‘Hexagon Device’, ‘IASC
Foundation Education logo’, IASC Foundation’, ‘eIFRS’, ‘IAS’,
‘IASB’, ‘IASC’, ‘IASCF’, ‘IASC Foundation Education’
98. ‘IASs’, ‘IFRIC’, ‘IFRS’, ‘IFRSs’, ‘International Accounting
Standards’,
‘International Financial Reporting Standards’ and ‘SIC’ are
Trade Marks of the IASC Foundation.
Contents
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) iv
INTRODUCTION
_____________________________________________________
_____ 1
Learning objectives
_____________________________________________________
___ 1
IFRS for SMEs
_____________________________________________________
_______ 2
Introduction to the
requirements__________________________________________
_____ 2
REQUIREMENTS AND EXAMPLES
___________________________________________ 3
Scope of this section
_____________________________________________________
__ 3
Information to be presented in the statement of financial
position _____________________ 4
Current/non-current distinction
99. ________________________________________________ 6
Current assets
_____________________________________________________
_______ 7
Current
liabilities_____________________________________________
______________ 9
Sequencing of items and format of items in the statement of
financial position __________ 11
Information to be presented either in the statement of financial
position or in the notes ___ 12
SIGNIFICANT ESTIMATES AND OTHER JUDGEMENTS
_________________________ 20
COMPARISON WITH FULL IFRSs
___________________________________________ 21
TEST YOUR KNOWLEDGE
________________________________________________ 22
APPLY YOUR KNOWLEDGE
_______________________________________________ 26
Case study 1
_____________________________________________________
_______ 26
Answer to case study 1
____________________________________________________
27
Case study 2
_____________________________________________________
_______ 29
Answer to case study 2
____________________________________________________
30
100. Module 4 – Statement of Financial Position
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 1
This training material has been prepared by IASC Foundation
education staff and has
not been approved by the International Accounting Standards
Board (IASB).
The accounting requirements applicable to small and medium-
sized entities (SMEs) are
set out in the International Financial Reporting Standard (IFRS)
for SMEs, which was
issued by the IASB in July 2009.
INTRODUCTION
This module focuses on the presentation of the statement of
financial position in accordance
with Section 4 Statement of Financial Position of the IFRS for
SMEs. Section 3 Financial Statement
Presentation sets out general presentation requirements and
Sections 4–8 focus on the
requirements for the presentation of the financial statements.
This module introduces the
learner to the subject, guides the learner through the official
text, develops the learner’s
understanding of the requirements through the use of examples
101. and indicates significant
judgements that are required in presenting a statement of
financial position. Furthermore,
the module includes questions designed to test the learner’s
knowledge of the requirements
and case studies to develop the learner’s ability to present a
statement of financial position in
accordance with the IFRS for SMEs.
�Learning objectives
Upon successful completion of this module you should know the
financial reporting
requirements for the presentation of the statement of financial
position in accordance with
the IFRS for SMEs. Furthermore, through the completion of
case studies that simulate aspects
of the real world application of that knowledge, you should
have enhanced your ability to
present a statement of financial position in accordance with the
IFRS for SMEs. In particular
you should, in the context of the IFRS for SMEs:
ncial position
financial position
-
current.
Module 4 – Statement of Financial Position
102. IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 2
14BIFRS for SMEs
The IFRS for SMEs is intended to apply to the general purpose
financial statements of entities
that do not have public accountability (see Section 1 Small and
Medium-sized Entities).
The IFRS for SMEs includes mandatory requirements and other
material (non-mandatory) that is
published with it.
The material that is not mandatory includes:
for SMEs and explains its
purpose, structure and authority.
financial statements and a
disclosure checklist.
main considerations in reaching
its conclusions in the IFRS for SMEs.
with the publication of the
IFRS for SMEs.
In the IFRS for SMEs the Glossary is part of the mandatory
requirements.
103. In the IFRS for SMEs there are appendices in Section 21
Provisions and Contingencies,
Section 22 Liabilities and Equity and Section 23 Revenue.
Those appendices are non-mandatory
guidance.
13BIntroduction to the requirements
The objective of general purpose financial statements of a small
or medium-sized entity is to
provide information about the entity’s financial position,
performance and cash flows that is
useful for economic decision-making by a broad range of users
who are not in a position to
demand reports tailored to meet their particular information
needs.
Section 3 Financial Statement Presentation prescribes general
requirements for the presentation of
financial statements.
Section 4 specifies line items to be presented in the statement of
financial position and
provides mandatory guidance on the sequencing of items and
the level of aggregation.
It specifies other information to be presented either in the
statement of financial position or
in the notes. It also determines how to distinguish current
assets and current liabilities from
non-current assets and non-current liabilities and it stipulates
when a current/non current
distinction must be made.
104. Module 4 – Statement of Financial Position
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 3
REQUIREMENTS AND EXAMPLES
The contents of Section 4 Statement of Financial Position of the
IFRS for SMEs are set out below and
shaded grey. Terms defined in the Glossary of the IFRS for
SMEs are also part of the
requirements. They are in bold type the first time they appear
in the text of Section 4.
The notes and examples inserted by the IASC Foundation
education staff are not shaded.
Other annotations inserted by the IASC Foundation staff are
presented within square brackets
in bold italics. The insertions made by the staff do not form
part of the IFRS for SMEs and have
not been approved by the IASB.
Scope of this section
4.1 This section sets out the information that is to be presented
in a statement of financiall
position and how to present it. The statement of financial
position (sometimes called the
balance sheet) presents an entity’s assets, liabilities and equity
as of a specific date—
the end of the reporting period.
105. Notes
The objective of general purpose financial statements of a small
or medium-sized
entity is to provide information about the entity’s financial
position, performance and
cash flows that is useful for economic decision-making by a
broad range of users who
are not in a position to demand reports tailored to meet their
particular information
needs. In meeting that objective, financial statements also show
the results of
management’s stewardship of the resources entrusted to it (see
paragraphs 2.2 and 2.3).
The elements of financial statements directly related to the
measurement of financial
position are assets, liabilities and equity. These elements are
defined as follows:
• An asset is a resource controlled by the entity as a result of
past events and
from which future economic benefits are expected to flow to the
entity (see
paragraphs 2.15(a) and 2.17–2.19).
• A liability is a present obligation of the entity arising from
past events, the
settlement of which is expected to result in an outflow from the
entity of
resources embodying economic benefits (see paragraphs
2.15(b), 2.20 and 2.21).
• Equity is the residual interest in the assets of the entity after
deducting all its
liabilities (see paragraphs 2.15(c) and 2.22).
106. Some items that meet the definition of an asset or a liability
may not be recognised as
assets or liabilities in the statement of financial position
because they do not satisfy
the criteria for recognition. The recognition and measurement
of assets, liabilities and
equity items are determined by other sections of the IFRS.
Section 4 specifies how
transactions and events recognised and measured in accordance
with other sections of
the IFRS for SMEs are presented in the statement of financial
position.
Module 4 – Statement of Financial Position
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 4
Information to be presented in the statement of financial
position
4.2 As a minimum, the statement of financial position shall
include line items that present the
following amounts:
(a) cash and cash equivalents. [Refer: Section 11]
(b) trade and other receivables. [Refer Section 11]
(c) financial assets (excluding amounts shown under (a), (b), (j)
107. and (k)).
[Refer Sections 11 and 12]
(d) inventories. [Refer: Section 13]
(e) property, plant and equipment. [Refer: Section 17]
(f) investment property carried at fair value through profit or
loss.
[Refer: Section 16]
(g) intangible assets. [Refer: Section 18]
(h) biological assets carried at cost less accumulated
depreciation and
impairment. [Refer: Section 34]
(i) biological assets carried at fair value through profit or loss.
[Refer: Section 34]
(j) investments in associates. [Refer: Section 14]
(k) investments in jointly controlled entities. [Refer: Section
15]
(l) trade and other payables. [Refer: Sections 11 and 12]
(m) financial liabilities (excluding amounts shown under (l) and
(p)).
[Refer: Sections 11 and 12]
(n) liabilities and assets for current tax. [Refer: Section 29]
(o) deferred tax liabilities and deferred tax assets (these shall
always be
classified as non-current). [Refer: Section 29]
108. (p) provisions. [Refer: Section 21]
(q) non-controlling interest, presented within equity separately
from the equity
attributable to the owners of the parent. [Refer: Section 9]
(r) equity attributable to the owners of the parent. [Refer:
Section 9]
Notes
When applicable, the entity shall also refer to presentation and
disclosure
requirements for specific account balances and transactions in
other sections of the
IFRS for SMEs.
4.3 An entity shall present additional line items, headings and
subtotals in the statement of
financial position when such presentation is relevant to an
understanding of the entity’s
financial position.
Module 4 – Statement of Financial Position
IASC Foundation: Training Material for the IFRS® for SMEs
109. (version 2010-1) 5
Example – presentation of a statement of financial position
Ex 1 A group prepares its consolidated financial statements in
accordance with the
IFRS for SMEs. The group’s consolidated statement of
financial position is set out
below.
A Group’s consolidated statement of financial position at 31
December 20X7
(in currency units
(1)
)
31 December
20X7
31 December
20X6
ASSETS
Current assets
Cash and cash equivalents 312,400 322,900
Trade receivables 91,600 110,800
110. Other financial assets—derivative hedging instruments 2,000
1,100
Inventories 135,230 132,500
Other current assets 23,650 11,350
Total current assets 564,880 578,650
Non-current assets
Financial assets—investments in shares 100,150 110,770
Investments in associates 100,500 121,000
– carried at fair value 60,000 71,000
– carried at cost less impairment 40,500 50,000
Investments in jointly controlled entities 42,000 35,000
– carried at fair value 20,000 13,000
– carried at cost less impairment 22,000 22,000
Investment property—carried at fair value 150,000 120,000
Property, plant and equipment—carried at cost less accumulated
depreciation 200,700 240,020
Biological assets 70,000 75,000
– carried at fair value 30,000 25,000
– carried at cost less impairment 40,000 50,000
111. Goodwill 80,800 91,200
Other intangible assets 107,070 127,560
Deferred tax assets 50,400 25,000
Total non-current assets 901,620 945,550
Total assets 1,466,500 1,524,200
(1) In this example, and in all other examples in this module,
monetary amounts are denominated in ‘currency units (CU)’.
Module 4 – Statement of Financial Position
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 6
31 December
20X7
31 December
20X6
LIABILITIES AND EQUITY
112. Current liabilities
Bank overdrafts 10,000 17,000
Trade and other payables 90,100 160,620
Short-term borrowings 150,000 200,000
Current portion of bank loans 20,000 20,000
Current portion of obligations under finance leases 1,500 1,200
Current portion of employee benefit obligations 15,000 10,000
Current tax payable 23,500 40,800
Short-term provisions 5,000 4,800
Total current liabilities 315,100 454,420
Non-current liabilities
Bank loans 65,000 85,000
Obligations under finance leases 2,300 3,800
Environmental restoration provision 26,550 48,440
Long-term employee benefit obligations 78,000 75,000
Deferred tax liabilities 5,800 26,040
Total non-current liabilities 177,650 238,280
Total liabilities 492,750 692,700
113. Equity
Share capital 650,000 600,000
Retained earnings 243,500 161,700
Actuarial gains on defined benefit pension plan 8,200 20,100
Gains on hedges of foreign exchange risks of firm commitments
2,000 1,100
Total equity attributable to owners of the parent 903,700
782,900
Non-controlling interests 70,050 48,600
Total equity 973,750 831,500
Total equity and liabilities 1,466,500 1,524,200
Current/non-current distinction
4.4 An entity shall present current and non-current assets, and
current and non-current
liabilities, as separate classifications in its statement of
financial position in accordance
with paragraphs 4.5–4.8, except when a presentation based on
liquidity provides
information that is reliable and more relevant. When that
exception applies, all assets
and liabilities shall be presented in order of approximate
liquidity (ascending or
descending).
114. Module 4 – Statement of Financial Position
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 7
Example – current/non-current distinction
Ex 2 The entity in example 1 presents current and non-current
assets and current and
non-current liabilities separately. The entity in this example
presents assets and
liabilities in order of approximate liquidity.
An entity’s statement of financial position at 31 December
20X8
(in thousands of currency units)
20X8 20X7
Assets
Cash and cash equivalents 230 160
Trade receivables 1,900 1,200
Inventory 1,000 1,950
Portfolio investments cost 2,500 2,500
115. Property, plant and equipment 2,280 850
– cost 3,730 1,910
– accumulated depreciation (1,450) (1,060)
Total assets 7,910 6,660
Liabilities
Trade payables 250 1,890
Interest payable 230 100
Income taxes payable 400 1,000
Long-term debt 2,300 1,040
Total liabilities 3,180 4,030
Shareholders’ equity
Share capital 1,500 1,250
Retained earnings 3,230 1,380
Total shareholders’ equity 4,730 2,630
Total equity and liabilities 7,910 6,660
Current assets
4.5 An entity shall classify an asset as current when:
116. (a) it expects to realise the asset, or intends to sell or consume
it, in the entity’s normal
operating cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realise the asset within twelve months after the
reporting date; or
(d) the asset is cash or a cash equivalent, unless it is restricted
from being exchanged or
used to settle a liability for at least twelve months after the
reporting date.
Notes
Current assets include assets (such as inventories (eg
consumables, raw materials, work
Module 4 – Statement of Financial Position
IASC Foundation: Training Material for the IFRS® for SMEs
(version 2010-1) 8
in progress and finished goods) and trade receivables) that are
sold, consumed or
realised as part of the normal operating cycle even when they
are not expected to be
realised within twelve months after the reporting period.
The IFRS for SMEs does not define an operating cycle. In the