Category Archives: 4.4 Income Statement

Income statement defined

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

Continuing operations

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.
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IFRS Income Statement Template – What it is?

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.
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