Exam 14: The Statement of Comprehensive Income and Statement of Changes in Equity

The problem with a 'blanket rule' requiring all expenditure of a particular type to be written off as incurred (e.g.expenditure on research),is that:

In establishing the classification of items in the statement of profit and loss,the size of an item is an appropriate basis for establishing a separate classification (by nature or function)for it.

Under IAS 1 additional line items,headings and subtotals:

Profit is calculated as the difference between income and expenses as defined by the IASB Conceptual Framework.As a result:

What is comprehensive income and how would users of financial statements get an indication of what the figure for comprehensive income might be?

If it is found that an error had been made in a prior period:

Government departments are now required to embrace traditional accounting methods.The broad effect of this requirement is to:

Which of the following statements is not in accordance with IAS 1 Presentation of Financial Statements with respect to the statement of comprehensive income?

How does IAS1 define 'extraordinary items'? Discuss the current arrangements for accounting for such items.

Changes in an entity's equity between the beginning and the end of the reporting period reflect the increase or decrease in its:

IAS 18 Revenue requires a number of disclosures,including information about:

An entity is required in IAS 1 to produce:

An entity shall recognise all items of income and expense in a period in profit or loss unless an International Financial Reporting Standard requires or permits otherwise.

A statement displaying components of profit or loss is referred to in IAS 1 as a(n):

Discuss three items that are permitted in IAS 1 Presentation of Financial Statements to be presented in other comprehensive income and explain how each item arises.

The effect of a revision of an accounting estimate must be recognised in profit and loss in which reporting periods?

Discuss the components required to be disclosed in the statement of changes in equity as prescribed in IAS 1 Presentation of Financial Statements.

The choice between reporting expenses by nature or by function is extremely important,as different net profit figures are derived depending upon the choice made.

Following are the items of income and expense recognised during the period by Murray PlC: II Foreign exchange differences III Losses on ineffective cash flow hedges IV Retrospective adjustment from a change in accounting policy V Actuarial losses on defined benefit pension plans VI Pror period error discovered Which of the following combinations identify all items permitted in IAS 1 'Presentation of Financial Statements to be presented under other comprehensive income?

What is a prior period error? Explain the accounting treatment for prior period errors.