Presentation of financial statements. Case study (english)

IAS 1 Представление финансовой отчетности
Источник: книга "Международные стандарты финансовой отчетности: Практическое руководство" Хенни Ван Грюнинг, Мариус Коэн, 2004 г.
Опубликовано: 16 сентября 2005

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)