INCOME STATEMENT AND RELATED INFORMATION参考.ppt

RELEVANT FACTS Both GAAP and IFRS have items that are recognized in equity as part of comprehensive income but do not affect net income. GAAP provides three possible formats for presenting this information: single income statement, combined statement of comprehensive income, in the statement of stockholders’ equity. Most companies that follow GAAP present this information in the statement of stockholders’ equity. IFRS allows a separate statement of comprehensive income or a combined statement. Under IFRS, revaluation of property, plant, and equipment, and intangible assets is permitted and is reported as other comprehensive income. The effect of this difference is that application of IFRS results in more transactions affecting equity but not net income. Which of the following is not reported in an income statement under IFRS? Discontinued operations. Extraordinary items. Cost of goods sold. Income tax. IFRS SELF-TEST QUESTION Which of the following statements is correct regarding income reporting under IFRS? IFRS does not permit revaluation of property, plant, and equipment, and intangible assets. IFRS provides the same options for reporting comprehensive income as GAAP. Companies must classify expenses either by nature or function. IFRS provides a definition for all items presented in the income statement. IFRS SELF-TEST QUESTION Which of the following is not an acceptable way of displaying the components of other comprehensive income under IFRS? Within the statement of retained earnings. Second income statement. Combined statement of comprehensive income. All of the above are acceptable. IFRS SELF-TEST QUESTION Copyright ? 2012 John Wiley Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley Sons, Inc.