Elrali Inc. is a manufacturing enterprise. The following is a summary of the income and expenses for the year ending 31 March 20x7:
| $ | |
| Gross turnover | 7,500,000 |
| Cost of sales of finished goods | 3,995,100 |
| Materials used | 910,100 |
| Labor | 1,200,000 |
| Variable production overhead costs allocated | 800,000 |
| Fixed production overhead costs allocated | 845,000 |
| Packing material | 310,000 |
| Cost of finished goods manufactured | 4,065,100 |
| Opening inventories finished goods | 70,000 |
| Closing inventories finished goods | (140,000) |
| Distribution costs | 718,800 |
| Administrative expenses | 929,100 |
| Other operating expenses | 587,100 |
| Investment income | 124,800 |
| Rental income | 17,000 |
| Finance costs | 234,000 |
| Write-down of cost of materials to net realizable value | 25,000 |
| Over-recovery of fixed production overhead costs | 41,000 |
| Abnormal spillage of materials | 15,000 |
| Income tax expense | 319,700 |
| Extraordinary profit | 43,100 |
Depreciation and amortization charges included in the fixed production overheads amounted to $418,000, and those included in administrative expenses amounted to $205,000. Total salaries and other staff costs included in administrative expenses amount to $689,300.
The following income statements could be prepared based on the two alternative classifications of income and expenses allowed by IAS 1 (see paragraph -3.4.3):
INCOME STATEMENT FOR THE YEAR ENDING 31 MARCH 20x7
Classification of expenses by function
| Revenue | 7,500,000 |
| Cost of sales (Calculation a) | (3,994.100) |
| Gross profit | 3,505,900 |
| Other operating income (Calculation b) | 141,800 |
| Distribution costs | (718,800) |
| Administrative expenses | (929,100) |
| Other operating expenses | (587,100) |
| Profit from operations | 1,412,700 |
| Finance costs | (234,000) |
| Profit before tax | 1,178,700 |
| Income tax expense | (319,700) |
| Profit after tax from ordinary activities | 859,000 |
| Extraordinary item | 43,100 |
| Net profit for the period | 902,100 |
INCOME STATEMENT FOR THE YEAR ENDING 31 MARCH 20x7
Classification of expenses by nature
| $ | |
| Revenue | 7,500,000 |
| Other operating income (Calculation b) | 141,800 |
| Changes in inventories of finished goods and work in progress | 70,000 |
| Work performed by the enterprise and capitalized (Calculation c) | (1,186,000) |
| Raw material and consumables used (Calculation d) | (1,260,100) |
| Staff costs (Calculation e) | (1,889,300) |
| Depreciation and amortization expenses (418 + 205) | (623,000) |
| Other operating expenses (Calculation f) , | (1,340,700) |
| Profit from operations | 1,412,700 |
| Finance costs | (234,000) |
| Profit before tax | 1,178,700 |
| Income tax expense | (319,700) |
| Profit after tax from ordinary activities | 859,000 |
| Extraordinary item | 43,000 |
| Net profit for the period | 902,100 |
Calculations
| Cost of sales | $ |
| Amount given | 3,995,100 |
| Write-down to net realizable value | 25,000 |
| Over-recovery of fixed production overhead | (41,000) |
| Abnormal materials spillage | 15,000 |
| 3,994,100 | |
| Other operating income | |
| Investment income | 124,800 |
| Rental income | 17,000 |
| 141,800 | |
| Work performed and capitalized | |
| Variable production overheads | 800,000 |
| Fixed production overheads (845 — 41) | 804,000 |
| Depreciation separately disclosed | (418,000) |
| 1,186,000 | |
| Raw materials consumed | |
| Materials used | 910,000 |
| Packing material | 310,000 |
| Write-down to net realizable value | 25,000 |
| Abnormal spillage | 15,000 |
| 1,260,100 | |
| Staff costs | |
| Labor | 1,200,000 |
| Other staff costs | 689,300 |
| 1,889,300 | |
| Other operating expenses | |
| Distribution costs given | 718,800 |
| Administrative costs given | 929,100 |
| Operating costs given | 587,100 |
| Staff costs shown in calculation e | (689,300) |
| Depreciation separately shown | (205,000) |
| 1,340,700 |
| Предоставление финансовой отчетности (МСФО 1) | Учебный пример (русский язык) | Case study (english) |