INCOME STATEMENT AND RELATED INFORMATION讲解材料.pptVIP

;Understand the uses and limitations of an income statement. Understand the content and format of the income statement. Prepare an income statement. Explain how to report items in the income statement. Identify where to report earnings per share information. Explain intraperiod tax allocation. Understand the reporting of accounting changes and errors. Prepare a retained earnings statement. Explain how to report other comprehensive income. ;Elements Minimum disclosure Intermediate components Illustration Condensed income statements ;Evaluate past performance.;It is often defined as the planned timing of revenues, expenses. gains, and losses to smooth out bumps in earnings. Companies use earnings management to increase income in the current year at the expense of income in future years. Companies also use earnings management to decrease current earnings in order to increase income in the future. Cookie jar ;Format of the Income Statement;Format of the Income Statement;Format of the Income Statement;Format of the Income Statement;Format of the Income Statement;Format of the Income Statement;Illustration;Format of the Income Statement;Reporting Within the Income Statement;Reporting Within the Income Statement;Reporting Within the Income Statement;Reporting Within the Income Statement;Reporting Within the Income Statement;Reporting Within the Income Statement;Illustration 4-7 Number of Unusual Items Reported in a Recent Year by 600 Large Companies;Reporting Within the Income Statement;Reporting Within the Income Statement;Reporting Within the Income Statement;Reporting Within the Income Statement;Reporting Within the Income Statement;Reporting Within the Income Statement; €800,000 100,000 120,000 90,000 - 220,000 - 500,000 200,000; €800,000 100,000 120,000 90,000 220,000 500,000 - 200,000; €100,000; - €10,000; €30,000;Important business indicator. Measures the dollars earned by each ordinary share. Must be disclosed on the income statement.;Ea