Often times you hear people talk about operating and non-operating items on the income statement. As it is, those can be defined and separate in various ways, but the principles in doing so remain the same. Continue reading
There are sometimes terms as ‘extraordinary’ and ‘ordinary’ used in accounting frameworks. Let us define them both and the difference between them. Continue reading
I get sometimes asked what the entity’s results are. ‘Results’ can be defined in two ways – financial position (e.g. entity’s balances at a certain date) and performance (revenues and expenses for a defined period). Whilst the balance sheet is something we’ll discuss separately, with this I would like to explain the income statement a little further. Continue reading
Very shortly I’d say that they are those expenses and income you made from your not operating related assets like inventory or receivables for an example or from payables to suppliers. Continue reading
What is usually stated, is the fact that a company ‘operates’ in specific field of industry. On the IFRS Income Statement the results of such activities are reflected under ‘continuing operations’. This is to simplify things however.
The phrase ‘continuing operations’ means a bit more. As you may guess, the stress is on the word ‘continuing’. Continuing is something that is expected to and will do so in the future as well. Continuing operations are those that generate revenue through sale of goods or providing services in coming periods, meaning for a longer period than 12 months. The management expects to have those activities up and running and hence their results are disclosed under ‘continuing operations’. From this the readers of the financial statements and annual report and investors can see how much money is made through ongoing business activities.
IFRS Income Statement Template, an example income statement prepared under IFRS reporting guidelines includes a line called “Revenue”. What it is and how is this disclosed on the income statement? What are the relevant notes that are required by IFRS? With this post I’ll try to answer to those questions.
IFRS Income Statement Template is an example income statement prepared under IFRS reporting guidelines. First off however you may be interested to know what an income statement essentially refers to and what exactly is presented in one. Just for a side note, IFRS is a reporting framework applied globally and most local GAAPs are more or less in compliance with IFRS.