PRESENTATION OF FINANCIAL STATEMENTS

Examples of statement of profit or loss and other comprehensive income

XYZ Group – Statement of profit or loss and other comprehensive income for the year
ended 31 December 20X7
(illustrating the presentation of profit or loss and other comprehensive income in one
statement and the classification of expenses within profit or loss by function)

(in thousands of currency units)

20X7 20X6
Revenue 390,000 355,000
Cost of sales (245,000) (230,000)
Gross profit 145,000 125,000
Other income 20,667 11,300
Distribution costs (9,000) (8,700)
Administrative expenses (20,000) (21,000)
Other expenses (2,100) (1,200)
Finance costs (8,000) (7,500)
(a)
Share of profit of associates 35,100 30,100
Profit before tax 161,667 128,000
Income tax expense (40,417) (32,000)
Profit for the year from continuing operations 121,250 96,000
Loss for the year from discontinued operations – (30,500)
PROFIT FOR THE YEAR 121,250 65,500
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Gains on property revaluation 933 3,367
Remeasurements of defined benefit pension plans (667) 1,333
(b)
Share of gain (loss) on property revaluation of associates 400 (700)
(c)
Income tax relating to items that will not be reclassified (166) (1,000)
500 3,000
Items that may be reclassified subsequently to profit
or loss:
(d)
Exchange differences on translating foreign operations 5,334 10,667
(d)
Available-for-sale financial assets (24,000) 26,667
(d)
Cash flow hedges (667) (4,000)
(c)
Income tax relating to items that may be reclassified 4,833 (8,334)
(14,500) 25,000
Other comprehensive income for the year, net of tax (14,000) 28,000
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 107,250 93,500
continued…

© Copyright 91 HKAS 1 IG (May 2014)

 PRESENTATION OF FINANCIAL STATEMENTS

…continued
Examples of statement of profit or loss and other comprehensive income
XYZ Group – Statement of profit or loss and other comprehensive income for the year
ended 31 December 20X7
(illustrating the presentation of profit or loss and other comprehensive income in one
statement and the classification of expenses within profit or loss by function)
(in thousands of currency units)
Profit attributable to:
Owners of the parent 97,000 52,400
Non-controlling interests 24,250 13,100
121,250 65,500
Total comprehensive income attributable to:
Owners of the parent 85,800 74,800
Non-controlling interests 21,450 18,700
107,250 93,500

Earnings per share (in currency units):

Basic and diluted 0.46 0.30

Alternatively, items of other comprehensive income could be presented in the statement of profit or
loss and other comprehensive income net of tax.
Other comprehensive income for the year, after tax: 20X7 20X6
Items that will not be reclassified to profit or loss:
Gains on property revaluation 600 2,700
Remeasurements of defined benefit pension plans (500) 1,000
Share of gain (loss) on property revaluation of associates 400 (700)
500 3,000
Items that may be reclassified subsequently to profit
or loss:
Exchange differences on translating foreign operations 4,000 8,000
Available-for-sale financial assets (18,000) 20,000
Cash flow hedges (500) (3,000)
(14,500) 25,000
(c)
Other comprehensive income for the year, net of tax (14,000) 28,000

(a) This means the share of associates’ profit attributable to owners of the associates, ie it is after tax and
non-controlling interests in the associates.
(b) This means the share of associates’ gain (loss) on property revaluation attributable to owners of the
associates, ie it is after tax and non-controlling interests in the associates.
(c) The income tax relating to each item of other comprehensive income is disclosed in the notes.
(d) This illustrates the aggregated presentation, with disclosure of the current year gain or loss and
reclassification adjustment presented in the notes. Alternatively, a gross presentation can be used.

© Copyright 92 HKAS 1 IG (May 2014)

 PRESENTATION OF FINANCIAL STATEMENTS

XYZ Group – Statement of profit or loss for the year ended 31 December 20X7

(illustrating the presentation of profit or loss and other comprehensive income in two
statements and the classification of expenses within profit or loss by nature)

(in thousands of currency units)

20X7 20X6
Revenue 390,000 355,000
Other income 20,667 11,300
Changes in inventories of finished goods and work in
progress (115,100) (107,900)
Work performed by the entity and capitalised 16,000 15,000
Raw material and consumables used (96,000) (92,000)
Employee benefits expense (45,000) (43,000)
Depreciation and amortisation expense (19,000) (17,000)
Impairment of property, plant and equipment (4,000) –
Other expenses (6,000) (5,500)
Finance costs (15,000) (18,000)
(a)
Share of profit of associates 35,100 30,100
Profit before tax 161,667 128,000
Income tax expense (40,417) (32,000)
Profit for the year from continuing operations 121,250 96,000
Loss for the year from discontinued operations – (30,500)
PROFIT FOR THE YEAR 121,250 65,500

Profit attributable to:

Owners of the parent 97,000 52,400
Non-controlling interests 24,250 13,100
121,250 65,500

Earnings per share (in currency units):

Basic and diluted 0.46 0.30

(a) This means the share of associates’ profit attributable to owners of the associates, ie it is after tax and
non-controlling interests in the associates.
)

© Copyright 93 HKAS 1 IG (May 2014)

 PRESENTATION OF FINANCIAL STATEMENTS

XYZ Group – Statement of profit or loss and other comprehensive income for the year
ended 31 December 20X7

(illustrating the presentation of profit or loss and other comprehensive income in two
statements)

(in thousands of currency units)

20X7 20X6
Profit for the year 121,250 65,500
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Gains on property revaluation 933 3,367
Remeasurements of defined benefit pension plans (667) 1,333
(a)
Share of gain (loss) on property revaluation of associates 400 (700)
(b)
Income tax relating to items that will not be reclassified (166) (1,000)
500 3,000
Items that may be reclassified subsequently to profit
or loss:

Exchange differences on translating foreign operations 5,334 10,667

Available-for-sale financial assets (24,000) 26,667
Cash flow hedges (667) (4,000)
(b)
Income tax relating to items that may be reclassified 4,833 (8,334)
(14,500) 25,000
Other comprehensive income for the year, net of tax (14,000) 28,000
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 107,250 93,500

Total comprehensive income attributable to:

Owners of the parent 85,800 74,800
Non-controlling interests 21,450 18,700
107,250 93,500

Alternatively, items of other comprehensive income could be presented, net of tax. Refer to the
statement of profit or loss and other comprehensive income illustrating the presentation of income
and expenses in one statement.

(a) This means the share of associates’ gain (loss) on property revaluation attributable to owners of the
associates, ie it is after tax and non-controlling interests in the associates.
(b) The income tax relating to each item of other comprehensive income is disclosed in the notes.

© Copyright 94 HKAS 1 IG (May 2014)