Measuring and Reporting financial Performance

present Profit/Loss
Used by large and small businesses
Has to include
1. Revenue
2. Finance costs
3. Share of profit or loss of associates
4. Tax Expence
5. A single amount comprising the total of:
  1. The post Tax Profit or loss of discontinued operations
  2. Post tax gain or loss recognised on the measurement to fair value. less cost to sell or on disposal of assets or diposal groups constituting the discontinued operations.
6. Profit or Loss
Key Questions answered by a statement of financial performance are:
1. Did the entity operate successfully over the reporting period by returning a profit
  1. Profit = Total Revenue earned more than total expenses incurred
2. Did a Loss arise?
  1. Loss= Total expenses incurred more than total revenue
statement of comprehensive income
1. required to be prepared by companies according to statutory requirements
Three main types of statements
1. Statement of Comp Income / Income statement / Profit/loss statement
2. Simple
  1. Basic in nature and information. Its a listing of the revenue items and the expense items
3. Classified
  1. Funcional method
    1. selling expenses
      1. directly related to selling the product.
    2. Admin expenses
      1. directly related to managing business affairs
    3. Finance expences
      1. Are a result of a Business's finances
    4. Miscellaneous expences
      1. expences that do not fit into a particular category

Resource summary

	Created by DeWet Hartman over 10 years ago