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STATEMENT OF COMPREHENSIVE INCOME AND INCOME STATEMENT

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Statement of Comprehensive Income and Income Statement

Scope of this section


  1. 1 This section requires an entity to present its total comprehensive income for a period—ie its financial performance for the period—in one or two financial statements. It sets out the information that is to be presented in those statements and how to present it.

Presentation of total comprehensive income


  1. 2 An entity shall present its total comprehensive income for a period either:
    1. in a single statement of comprehensive income, in which case the statement of comprehensive income presents all items of income and expense recognised in the period; or
    2. in two statements—an income statement and a statement of comprehensive income—in which case the income statement presents all items of income and expense recognised in the period except those that are recognised in total comprehensive income outside of profit or loss as permitted or required by this Standard.
  1. 3 A change from the single-statement approach to the two-statement approach, or vice versa, is a change in accounting policy to which Section 10 Accounting Policies, Estimates and Errors applies.

Single-statement approach

  1. 4 Under the single-statement approach, the statement of comprehensive income shall include all items of income and expense recognised in a period unless this Standard requires otherwise. This Standard provides different treatment for the following circumstances:
    1. the effects of corrections of errors and changes in accounting policies are presented as retrospective adjustments of prior periods instead of as part of profit or loss in the period in which they arise (see Section 10); and
    2. four types of other comprehensive income are recognised as part of total comprehensive income, outside of profit or loss, when they arise:
      1. some gains and losses arising on translating the financial statements of a foreign operation (see Section 30 Foreign Currency Translation);
      2. some actuarial gains and losses (see Section 28 EmployeeBenefits);
      3. some changes in fair values of hedging instruments (see Section 12 Other Financial Instrument Issues); and
      4. changes in the revaluation surplus for property, plant and equipment measured in accordance with the revaluation model (see Section 17 Property, Plant and Equipment).
  1. 5 As a minimum, an entity shall include, in the statement of comprehensive income, line items that present the following amounts for the period:
    1. revenue.
    2. finance costs.
    3. share of the profit or loss of investments in associates (see Section 14 Investments in Associates) and jointly controlled entities (see Section 15 Investments in Joint Ventures) accounted for using the equity method.
    4. tax expense excluding tax allocated to items (5), (6) and (8) (see paragraph 29.35).
    5. a single amount comprising the total of:
      1. the post-tax profit or loss of a discontinued operation; and
      2. the post-tax gain or loss attributable to an impairment, or reversal of an impairment, of the assets in the discontinued operation (see Section 27 Impairment of Assets), both at the time and subsequent to being classified as a discontinued operation and to the disposal of the net assets constituting the discontinued operation.
    6. profit or loss (if an entity has no items of other comprehensive income, this line need not be presented).
    7. each item of other comprehensive income (see paragraph 5.4(b)) classified by nature (excluding amounts in (h)). Such items shall be grouped into those that, in accordance with this Standard:
      1. will not be reclassified subsequently to profit or loss—ie those in paragraph 5.4(2)(i)–(ii) and (iv); and
      2. will be reclassified subsequently to profit or loss when specific conditions are met—ie those in paragraph 5.4(b)(iii).
    8. share of the other comprehensive income of associates and jointly controlled entities accounted for by the equity method.
    9. total comprehensive income (if an entity has no items of other comprehensive income, it may use another term for this line such as profit or loss).
  1. 6 An entity shall disclose separately the following items in the statement of comprehensive income as allocations for the period:
    1. profit or loss for the period attributable to
      1. non-controlling interest; and
      2. owners of the parent.
    2. total comprehensive income for the period attributable to
      1. non-controlling interest; and
      2. owners of the parent.

Two-statement approach

  1. 7 Under the two-statement approach, the income statement shall display, as a minimum, line items that present the amounts in paragraph 5.5(a)–5.5(f) for the period, with profit or loss as the last line. The statement of comprehensive income shall begin with profit or loss as its first line and shall display, as a minimum, line items that present the amounts in paragraph 5.5(g)–5.5(i) and paragraph 5.6 for the period.

Requirements applicable to both approaches

  1. 8 Under this Standard, the effects of corrections of errors and changes in accounting policies are presented as retrospective adjustments of prior periods instead of as part of profit or loss in the period in which they arise (see Section 10).
  1. 9 An entity shall present additional line items, headings and subtotals in the statement of comprehensive income (and in the income statement, if presented), when such presentation is relevant to an understanding of the entity’s financial performance.
  1. 10 An entity shall not present or describe any items of income and expense as ‘extraordinary items’ in the statement of comprehensive income (or in the income statement, if presented) or in the notes.

Analysis of expenses


  1. 11 An entity shall present an analysis of expenses using a classification based on either the nature of expenses or the function of expenses within the entity, whichever provides information that is reliable and more relevant.

Analysis by nature of expense

  1. Under this method of classification, expenses are aggregated in the statement of comprehensive income according to their nature (for example, depreciation, purchases of materials, transport costs, employee benefits and advertising costs) and are not reallocated among various functions within the entity.

Analysis by function of expense

  1. Under this method of classification, expenses are aggregated according to their function as part of cost of sales or, for example, the costs of distribution or administrative activities. At a minimum, an entity discloses its cost of sales under this method separately from other expenses.

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