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Contents

5.1 Scope of this section.

5.2 Small companies – exemptions.

5.2.1 Extract from FRS102: Section 5.1A.

5.2.2 OmniPro comment

5.3 Presentation of total comprehensive income.

5.3.1 Extract from FRS102: Section 5.2-5.3.

5.3.2 OmniPro comment

5.3.2.1 Choices available.

5.3.2.2 Implications of changing between the two layouts.

5.4 Single-statement approach.

5.4.1 Extract from FRS102: Section 5.5-5.6, Section 5.7D and Section 5.9.

5.4.2 OmniPro comment

5.4.2.1 Overview.

5.4.2.2 The formats.

5.4.2.2.1 Profit and loss account/income statement.

5.4.2.2.2 Other comprehensive income.

5.4.2.3 Practical application of format 1 showing the single statement approach for group.

5.4.2.3.1 Practical application of single statement approach for an individual entity.

5.5 Two-statement approach.

5.5.1 Extract from FRS102: Section 5.7-5.7D and Section 5.9.

5.5.2 OmniPro comment

5.5.2.1 Overview.

5.5.2.2 Formats.

5.5.2.2.1 Profit and loss account/income statement formats.

5.5.2.2.2 Other comprehensive income – statement of comprehensive income.

5.5.2.3 Practical application of the two statement approach showing format 1.

5.5.2.3.1 Two statement approach for a Group.

5.5.2.3.2 Two statement approach for an individual entity (i.e. not group accounts).

5.6 Alternative profit and loss format.

5.6.1 Extract from FRS102: Section 5.7B-5.7C.

5.6.2 OmniPro comment

5.6.2.1 Overview.

5.6.2.2 Example of alternative basis for the statements of comprehensive income – One statement approach.

5.7 Discontinued operations.

5.7.1 Extract from FRS102: Section 5.7E-5.7F.

5.7.2 OmniPro comment

5.7.2.1 Discontinued operation and when it is to be considered to be discontinued.

5.7.2.2 Disclosure requirements for discontinued operations.

5.8 Prior year/period adjustments.

5.8.1 Extract from FRS102: Section 5.8.

5.8.2 OmniPro comment

5.9 Exceptional items and extraordinary items.

5.9.1 Extract from FRS102: Section 5.9A and Section 5.10-5.10B.

5.9.2 OmniPro comment

5.9.2.1 Exceptional items.

5.9.2.1.1 Exceptional items defined.

5.9.2.1.2 Examples of exceptional items.

5.9.2.1.3 Assessing whether to disclose exceptional item in notes or on the face of income statement.

5.9.2.1.4 Disclosure requirements of exceptional items in the notes.

5.9.2.1.5 Illustration of disclosure of exceptional items.

5.9.2.1.5.1 Exceptional items shown on face of profit and loss account.

5.9.2.1.5.2 Exceptional items shown in notes and not of the face of profit and loss account.

5.9.2.1.5.3 Exceptional itekm accounting policy disclosure.

5.9.2.2 Extraordinary items.

5.10 Operating profit.

5.10.1 Extract from FRS102: Section 5.9B.

5.10.2 OmniPro comment

5.11 Analysis of expenses.

5.11.1 Extract from FRS102: Section 5.11.

5.11.2 OmniPro comment

5.11.2.1 Overview.

5.11.2.2 Analysis by function of expense.

5.11.2.2.1 Format 1 of Companies Act 2006 – for UK entities.

5.11.2.2.2 Format 1 Companies Act 2014 – for Republic of Ireland entities.

5.11.2.3 Analysis by nature of expense.

5.11.2.3.1 Format 2 of Companies Act 2006 – for UK entities.

5.11.2.3.2 Format 2 of Companies Act 2014 for Republic of Ireland entities.

5.12 Exemption from preparing a profit and loss account when consolidated financial statements are prepared.

5.12.1 OmniPro comment

5.12.1.1 Overview.

5.12.1.2 For UK Parent Company.

5.12.1.3 For Republic of Ireland Parent Company.

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5.12 Exemption from preparing a profit and loss account when consolidated financial statements are prepared
5.12.1 OmniPro comment
5.12.1.1 Overview

Where consolidated financial statements are prepared the Companies Act allows an exemption for the parent entity not to present a profit and loss account being disclosed. Where this exemption is taken the below disclosures should be included:

5.12.1.2 For UK Parent Company

Result attributable to XXX Limited

XXXX Limited has availed of the exemption contained in Section 408(3) of the Companies Act 2006 and as a result its profit and loss account has not been presented.  XXX Limited’s profit for the year after tax was CUXXX (2014: CUXXX).

5.12.1.3 For Republic of Ireland Parent Company

Result attributable to XXX Limited (Note this note is to be included on the face of the balance sheet once the Companies (Accounting) Act 2017 is applies. This applies mandatorily for all periods beginning on or after 1 January 2017.

XXXX Limited has availed of the exemption contained in Section 304 of the Companies Act 2014 and as a result its profit and loss account has not been presented.  XXX Limited’s profit for the year after tax was CUXXX (2014: CUXXX).

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Example 1: Example of Single statement approach for a Group.

Example 2: Example of Single statement approach for an individual entity (i.e. not group accounts).

Example 3: Two statement approach for a Group.

Example 3(a): Two statement approach for an individual entity (i.e. not group accounts).

Example 4: Consolidated Statement of Comprehensive/Income statement approach – Alternative Approach.

Example 5: Discontinued operations not ceased.

Example 6: Exceptional item disclosure note for an accounting policy.

Example 7: See below the extract from format 1 of the Companies Act 2006 for the UK.

Example 8: See below the extract from format 1 of the Companies Act 2014 for the Republic of Ireland.

Example 9: See below the extract from format 2 of the Companies Act 2006 for the UK.

Example 10: See below the extract from format 2 of the Companies Act 2014 for the Republic of Ireland.

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