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[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off”][et_pb_row admin_label=”Row”][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [button link=”http://www.frs102.com/members/premium-toolkit/” type=”big” color=”red”] Return to Main Index[/button] [/et_pb_text][/et_pb_column][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [button link=”https://uk.frs102.com/members/premium-toolkit/section-5/” type=”big” color=”red”] Return to Section 5 Home[/button] [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Main Body Text” background_layout=”light” text_orientation=”justified” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]Example 1: Example of Single statement approach for a Group
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Consolidated Statement of Comprehensive Income |
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|
|
|
For the year ended 31 December 2015 |
|
|
|
|
|
Notes |
2015 |
2014 |
|
|
|
CU |
CU |
|
|
|
|
|
|
Turnover |
1 |
XXXXX |
XXXXX |
|
|
|
|
|
|
Cost of sales |
|
(XXXX) |
(XXXX) |
|
|
|
|
|
|
Gross profit |
|
XXXX |
XXXX |
|
|
|
|
|
|
Selling and distribution costs |
|
(XXX) |
(XXX) |
|
|
|
|
|
|
Administrative expenses |
|
(XXX) |
(XXX) |
|
|
|
|
|
|
Other operating income |
|
XXX |
XXX |
|
|
|
|
|
|
Group operating profit |
3 |
XXX |
XXX |
|
|
|
|
|
|
Share of profit in associates |
4 |
XXX |
XXX |
|
Share of profit in joint venture |
5 |
XXX |
XXX |
|
|
|
|
|
|
Profit |
|
XXXX |
XXXX |
|
|
|
|
|
|
Interest receivable and similar income |
6 |
XXX |
XXX |
|
|
|
|
|
|
Interest payable and similar income |
7 |
(XXX) |
(XXX) |
|
|
|
|
|
|
Profit before taxation |
|
XXXX |
XXXX |
|
|
|
|
|
|
Tax on profit on ordinary activities |
8 |
(XXX) |
(XXX) |
|
|
|
|
|
|
Profit for the financial year |
|
1,000,00 |
500,000 |
Other comprehensive income:
|
Exchange differences on retranslation of foreign operations |
XXX |
XXX |
|
Group cash flow hedges |
|
|
|
-effective portion of changes in fair value to cash flow hedges |
9 XXX |
XXX |
|
-fair value of cash flow hedges transferred to income statement |
10 XXX |
XXX |
|
Actuarial loss in respect of the defined pension scheme |
11 (XXX) |
(XXX) |
|
Gain/(loss) on revaluation of intangible assets |
12 XXX |
(XXX) |
|
Gain/(loss) on revaluation of property, plant and equipment |
13 XXX |
(XXX) |
|
Gain/(loss) on revaluation of subsidiaries, associates, etc. |
14 XXX |
(XXX) |
|
Deferred tax on components of other comprehensive income |
15 XXX |
XXX |
|
Total other comprehensive income for the year net of tax |
200,000 |
(100,000) |
|
|
|
|
|
Total comprehensive income for the year |
1,200,000 |
400,000 |
|
Total comprehensive income for the financial year attributable to: Non-controlling interests |
XXXX |
XXXX |
|
|
|
|
|
Owners of the parent company |
XXX |
XXX |
|
|
1,200,000 |
400,000 |
|
Profit for the financial year attributable to: Non-controlling interests |
XXXX |
XXXX |
|
|
|
|
|
Owners of the parent company |
XXX |
XXX |
|
|
1,000,000 |
500,000 |
Example 2: Example of Single statement approach for an individual entity (i.e. not group accounts)
|
Statement of Comprehensive Income |
|
|
|
|
For the year ended 31 December 2015 |
|
|
|
|
|
Notes |
2015 |
2014 |
|
|
|
CU |
CU |
|
|
|
|
|
|
Turnover |
1 |
XXXXX |
XXXXX |
|
|
|
|
|
|
Cost of sales |
|
(XXXX) |
(XXXX) |
|
|
|
|
|
|
Gross profit |
|
XXXX |
XXXX |
|
|
|
|
|
|
Selling and distribution costs |
|
(XXX) |
(XXX) |
|
|
|
|
|
|
Administrative expenses |
|
(XXX) |
(XXX) |
|
|
|
|
|
|
Other operating income |
|
XXX |
XXX |
|
|
|
|
|
|
Operating profit |
3 |
XXX |
XXX |
|
|
|
|
|
|
Income from shares in group undertakings |
4 |
XXX |
XXX |
|
Income from shares in other financial assets |
4 |
XXX |
XXX |
|
Income from shares in participating interests |
5 |
XXX |
XXX |
|
|
|
|
|
|
Profit before interest and taxation |
|
XXXX |
XXXX |
|
|
|
|
|
|
Interest receivable and similar income |
6 |
XXX |
XXX |
|
|
|
|
|
|
Interest payable and similar income |
7 |
(XXX) |
(XXX) |
|
|
|
|
|
|
Profit before taxation |
|
XXXX |
XXXX |
|
|
|
|
|
|
Tax on profit on ordinary activities |
8 |
(XXX) |
(XXX) |
|
|
|
|
|
|
Profit for the financial year |
|
1,000,00 |
500,000 |
|
cash flow hedges |
|
|
|
– effective portion of changes in fair value to cash flow hedges |
9 XXX |
XXX |
|
– fair value of cash flow hedges transferred to income statement |
10 XXX |
XXX |
|
Actuarial loss in respect of the defined pension scheme |
11 (XXX) |
(XXX) |
|
Gain/(loss) on revaluation of intangible assets |
12 XXX |
(XXX) |
|
Gain/(loss) on revaluation of property, plant and equipment |
13 XXX |
(XXX) |
|
Gain/(loss) on revaluation of subsidiaries, associates, etc. |
14 XXX |
(XXX) |
|
Deferred tax on components of other comprehensive income |
15 XXX |
XXX |
|
|
|
|
|
Total other comprehensive income for the year net of tax |
200,000 |
(100,000) |
|
|
|
|
|
Total comprehensive income for the year |
1,200,000 |
400,000 |
|
Total comprehensive income for the financial year attributable to: |
|
|
|
|
|
|
|
Owners of the parent company |
1,200,000 |
400,000 |
|
|
1,200,000 |
400,000 |
|
Profit for the financial year attributable to: |
|
|
|
|
|
|
|
Owners of the parent company |
1,000,000 |
400,000 |
|
|
1,000,000 |
500,000 |
Example 3: Two statement approach for a Group
|
Consolidated Profit and Loss Account |
|
|
|
|
For the Year Ended 31 December 2015 |
|
|
|
|
|
Notes |
2015 |
2014 |
|
|
|
CU |
CU |
|
Turnover |
1 |
XXXXX |
XXXXX |
|
Cost of sales |
|
(XXXX) |
(XXXX) |
|
Gross profit |
|
XXXX |
XXXX |
|
|
|
|
|
|
Selling and distribution costs |
|
(XXX) |
(XXX) |
|
Administrative expenses |
|
(XXX) |
(XXX) |
|
Other operating income |
|
XXX |
XXX |
|
Group operating profit |
3 |
XXX |
XXX |
|
|
|
|
|
|
Share of profit in associates |
4 |
XXX |
XXX |
|
Share of profit in joint venture |
5 |
XXX |
XXX |
|
Profit before interest and taxation |
|
XXXX |
XXXX |
|
|
|
|
|
|
Interest receivable and similar income |
6 |
XXX |
XXX |
|
Interest payable and similar income |
7 |
(XXX) |
(XXX) |
|
Profit before taxation |
|
XXXX |
XXXX |
|
|
|
|
|
|
Tax on profit on ordinary activities |
8 |
(XXX) |
(XXX) |
|
|
|
|
|
|
Profit for the financial year |
|
1,000,000 |
500,000 |
|
Profit for the financial year attributable to: Non-controlling interests |
XXXX |
XXXX |
|
Owners of the company |
XXX |
XXX |
|
|
1,000,000 |
500,000 |
SEPARATE PAGE IN THE FINANCIAL STATEMENTS INCLUDE:
Consolidated Statement of Comprehensive Income
|
Profit for the financial year |
1,000,000 |
500,000 |
|
Exchange differences on retranslation of foreign operations |
XXX |
XXX |
|
Group cash flow hedges |
|
|
|
– effective portion of changes in fair value to cash flow hedges |
9 XXX |
XXX |
|
– fair value of cash flow hedges transferred to income statement |
10 XXX |
XXX |
|
Actuarial loss in respect of the defined pension scheme |
11 (XXX) |
(XXX) |
|
Gain/(loss) on revaluation of intangible assets |
12 XXX |
(XXX) |
|
Gain/(loss) on revaluation of property, plant and equipment |
13 XXX |
(XXX) |
|
Gain/(loss) on revaluation of subsidiaries, associates, etc. |
14 XXX |
(XXX) |
|
Deferred tax on components of other comprehensive income |
15 XXX |
XXX |
|
|
|
|
|
Total other comprehensive income for the year net of tax |
200,000 |
(100,000) |
|
|
|
|
|
Total comprehensive income for the year |
1,200,000 |
400,000 |
|
Total comprehensive income for the financial year attributable to: Non-controlling interests |
XXXX |
XXXX |
|
Owners of the company |
XXX |
XXX |
|
|
1,200,000 |
400,000 |
Example 3(a): Two statement approach for an individual entity (i.e. not group accounts)
|
Profit and Loss Account |
|
|
|
|
For the Year Ended 31 December 2015 |
|
|
|
|
|
Notes |
2015 |
2014 |
|
|
|
CU |
CU |
|
Turnover |
1 |
XXXXX |
XXXXX |
|
Cost of sales |
|
(XXXX) |
(XXXX) |
|
Gross profit |
|
XXXX |
XXXX |
|
Selling and distribution costs |
|
(XXX) |
(XXX) |
|
Administrative expenses |
|
(XXX) |
(XXX) |
|
Other operating income |
|
XXX |
XXX |
|
Operating profit |
3 |
XXX |
XXX |
|
Income from shares in group undertakings |
4 |
XXX |
XXX |
|
Income from shares in other financial assets |
4 |
XXX |
XXX |
|
Income from shares in participating interests |
5 |
XXX |
XXX |
|
Profit on ordinary activities before interest and taxation |
|
XXXX |
XXXX |
|
Interest receivable and similar income |
6 |
XXX |
XXX |
|
Interest payable and similar income |
7 |
(XXX) |
(XXX) |
|
Profit on ordinary activities before taxation |
|
XXXX |
XXXX |
|
Tax on profit on ordinary activities |
8 |
(XXX) |
(XXX) |
|
Profit for the financial year |
|
1,000,000 |
500,000 |
|
Profit for the financial year attributable to: |
|
|
|
Owners of the parent company |
1,000,000 |
500,000 |
|
|
1,000,000 |
500,000 |
SEPARATE PAGE IN THE FINANCIAL STATEMENTS INCLUDE:
Consolidated Statement of Comprehensive Income
|
Profit for the financial year |
1,000,000 |
500,000 |
|
Cash flow hedges |
|
|
|
– effective portion of changes in fair value to cash flow hedges |
9 XXX |
XXX |
|
– fair value of cash flow hedges transferred to income statement |
10 XXX |
XXX |
|
Actuarial loss in respect of the defined pension scheme |
11 (XXX) |
(XXX) |
|
Gain/(loss) on revaluation of intangible assets |
12 XXX |
(XXX) |
|
Gain/(loss) on revaluation of property, plant and equipment |
13 XXX |
(XXX) |
|
Gain/(loss) on revaluation of subsidiaries, associates, etc. |
14 XXX |
(XXX) |
|
Deferred tax on components of other comprehensive income |
15 XXX |
XXX |
|
|
|
|
|
Total other comprehensive income for the year net of tax |
200,000 |
(100,000) |
|
|
|
|
|
Total comprehensive income for the year |
1,200,000 |
400,000 |
|
Total comprehensive income for the financial year attributable to: |
|
|
|
Owners of the parent company |
XXX |
XXX |
|
|
1,200,000 |
400,000 |
Example 4: Consolidated Statement of Comprehensive Income – Alternative Approach
|
For the Year Ended 31 December 2015 |
|
|
|
|
|
Notes |
2015 |
2014 |
|
|
|
CU |
CU |
|
Revenue |
1 |
XXXXX |
XXXXX |
|
Cost of sales |
|
(XXXX) |
(XXXX) |
|
|
|
|
|
|
Gross profit |
|
XXXX |
XXXX |
|
Selling and distribution costs |
|
(XXX) |
(XXX) |
|
Administrative expenses |
|
(XXX) |
(XXX) |
|
Other operating income |
|
XXX |
XXX |
|
|
|
|
|
|
Group operating profit |
3 |
XXX |
XXX |
|
Share of profit in associates |
4 |
XXX |
XXX |
|
Share of profit in joint venture |
5 |
XXX |
XXX |
|
|
|
|
|
|
Profit before interest and taxation |
|
XXXX |
XXXX |
|
Finance income |
6 |
XXX |
XXX |
|
Finance costs |
7 |
(XXX) |
(XXX) |
|
|
|
|
|
|
Profit on before taxation |
|
XXXX |
XXXX |
|
Income tax on profit |
8 |
(XXX) |
(XXX) |
|
|
|
|
|
|
Profit for the financial year |
|
1,000,00 |
500,000 |
|
cash flow hedges |
|
|
|
– effective portion of changes in fair value to cash flow hedges |
9 XXX |
XXX |
|
– fair value of cash flow hedges transferred to income statement |
10 XXX |
XXX |
|
Actuarial loss in respect of the defined pension scheme |
11 (XXX) |
(XXX) |
|
Share of other comprehensive income of associates |
12 XXX |
(XXX) |
|
Share of other comprehensive income of joint controlled entities |
12 XXX |
(XXX) |
|
Gain/(loss) on revaluation of intangible assets |
12 XXX |
(XXX) |
|
Gain/(loss) on revaluation of property, plant and equipment |
13 XXX |
(XXX) |
|
Gain/(loss) on revaluation of subsidiaries, associates, etc. |
14 XXX |
(XXX) |
|
Deferred tax on components of other comprehensive income |
15 XXX |
XXX |
|
|
|
|
|
Total other comprehensive income for the year net of tax |
200,000 |
(100,000) |
|
|
|
|
|
Total comprehensive income for the year |
1,200,000 |
400,000 |
|
Total comprehensive income for the financial year attributable to: |
|
|
|
|
|
|
|
Owners of the parent company |
1,200,000 |
400,000 |
|
|
1,200,000 |
400,000 |
|
Profit for the financial year attributable to: |
|
|
|
|
|
|
|
Owners of the parent company |
1,000,000 |
400,000 |
Example 5: Discontinued operations not ceased
Company A has two businesses. At the year end the Company had informed employees of the intention to close one of these businesses however the business would not close fully until 3 months following the year end. As the business has not ceased by the year end it should not be disclosed as a discontinued operation at the balance sheet. The usual provisions will be recognised in the financial statements however for closure costs.
See example below extracted from the Appendix to Section 5 which illustrates the requirements for discontinued operations in a single statement format:
Statement of comprehensive income for the year ended 31 December 20X1
|
|
|
20X1 |
|
|
20X0 |
|
|
Continuing operations |
Discontinued operations |
Total |
Continuing operations (as restated) |
Discontinued Operations (as restated) |
Total |
|
|
|
CU |
CU |
CU |
CU |
CU |
CU |
|
Turnover |
4,200 |
1,232 |
5,432 |
3,201 |
1,500 |
4,701 |
|
Cost of Sales |
(2,591) |
(1,104) |
(3,695) |
(2,281) |
(1,430) |
(3,711) |
|
Gross Profit |
1,609 |
128 |
1,737 |
920 |
70 |
990 |
|
|
|
|
|
|
|
|
|
Administrative Expenses |
(452) |
(110) |
(562) |
(418) |
(120) |
(538) |
|
|
|
|
|
|
|
|
|
Other operating income |
212 |
_ |
212 |
198 |
_ |
198 |
|
|
|
|
|
|
|
|
|
Profit on disposal of operations |
_ |
301 |
301 |
_ |
_ |
_ |
|
Operating profit |
1,369 |
319 |
1,688 |
700 |
(50) |
650 |
|
Interest receivable and similar income |
14 |
_ |
14 |
16 |
_ |
16 |
|
Interest payable and similar charges |
(208) |
_ |
(208) |
(208) |
_ |
(208) |
|
Profit on ordinary activities before tax |
1,175 |
319 |
1,494 |
508 |
(50) |
458 |
|
|
|
|
|
|
|
|
|
Taxation |
(390) |
(4) |
(394) |
(261) |
3 |
(258) |
|
Profit on ordinary activities after taxation and profit for the financial year |
785 |
315 |
1,100 |
247 |
(47) |
200 |
|
Actuarial losses on defined benefit pension plans |
|
|
(108) |
|
|
(68) |
|
|
|
|
|
|
|
|
|
peferred tax movement relating to actuarial losses |
|
|
28 |
|
|
18 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
|
|
1,020 |
|
|
150 |
Example 6: Exceptional item disclosure note for an accounting policy
Exceptional items
Exceptional items are those that the Directors’ view are required to be separately disclosed by virtue of their size or incidence to enable a full understanding of the Company’s’ financial performance. The Company believe that this presentation provides a more informative analysis as it highlights one off items. Such items may include restructuring, impairment of assets, profit or loss on disposal or termination of operations, litigation settlements, legislative changes and profit or loss on disposal of investments. The company has adopted an income statement format that seeks to highlight significant items within the company results for the year.
Example 6A See below the extract from format 1 of the Companies Act 2014 for the Republic of Ireland:
- Turnover
- Cost of sales
- Gross profit or loss
- Distribution costs
- Administrative expenses
- Other operating income
- Income from shares in group undertakings
- Income from participating interests
- Income from other financial assets
- Other interest receivable and similar income
- Amounts written off financial assets and investments held as current assets
- Interest payable and similar charges
- Tax on profit or loss on ordinary activities
- Profit or loss on ordinary activities
- Other taxes not shown under the above items
- Profit or loss for the financial year
Example 6B: See below the extract from format 1 of the Companies Act 2006 for the UK
- Turnover
- Cost of sales
- Gross profit or loss
- Distribution costs
- Administrative expenses
- Other operating income
- Income from shares in group undertakings
- Income from participating interests
- Income from other fixed asset investments
- Other interest receivable and similar income
- Amounts written off investments
- Interest payable and similar expenses
- Tax on profit or loss
- Profit or loss after taxation
- Other taxes not shown under the above items
- Profit or loss for the financial year
Analysis by nature of expense
Where format 2 of the Companies Act is adopted then this represents the analysis by nature of expense approach.
Example 6C See below the extract from format 2 of the Companies Act 2014 for the Republic of Ireland:
- Turnover
- Variation in stock of finished goods and in work in progress
- Own work capitalised
- Other operating income
- Raw materials and consumables
- Other external charges
- Staff costs:
- Wages and salaries
- Social insurance costs
- other retirement benefit costs
- other compensation costs
- Depreciation and other amounts written off tangible and intangible fixed assets
- Exceptional amounts written off current assets
- Other operating charges
- Income from shares in group undertakings
- Income from participating interests
- Income from other financial assets
- Other interest receivable and similar income
- Amounts written off financial assets and investments held as current assets
- Interest payable and similar charges
- Tax on profit or loss on ordinary activities
- Profit or loss on ordinary activities after taxation
- Other taxes not shown under the above items
Profit or loss for the financial year
Example 6D: See below the extract from format 2 of the Companies Act 2006 for the UK:
- Turnover
- Change in stock of finished goods and in work in progress
- Own work capitalised
- Other operating income
- Raw materials and consumables
- Other external charges
- Staff costs:
- Wages and salaries
- Social insurance costs
- other retirement benefit costs
- other compensation costs
- Depreciation and other amounts written off tangible and intangible fixed assets
- Amounts written off current assets to the extent that they exceed write-offs which are normal in the undertaking concerned.
- Other operating expenses
- Income from shares in group undertakings
- Income from participating interests
- Income from other fixed asset investments
- Other interest receivable and similar income
- Amounts written off investments
- Interest payable and similar expenses
- Tax on profit or loss
- Profit or loss after taxation
- Other taxes not shown under the above items
- Profit or loss for the financial year
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