on the above balance sheet, under expense profit on sale of asset, gain on fair
ID: 2530725 • Letter: O
Question
on the above balance sheet, under expense profit on sale of asset, gain on fair value adjustment, gain on fair value of derivative and share of net profit of associates and joint venture. does these items classified as revenue or expense item? or should they be excluded. if the question is to mark all revenue and expense and find the profit for the period. do i need to calculate the profit by excluding the above items? or do I classify them as expense as in the statement ? what about hare of net profit of associates and joint venture? or do I classify them as revenue. Thank you
Consolidated Statement of Profit and Loss and Other Comprehensive Income For the Financial Year Ended 25 June 2017 Other revenue Raw materials,consumables and thind party purchases 335,991)311,761) 27,793) Employee benefts expenses Occupancy expenses 1,107 47.483 Proft on suale of assets Freight and cartage Leasing enses Gain on fair value adjustments-biological assets Gainvlossi on fairvalue of derivaves Other expenses 65,430) share of net profits of associates and jaint ventures accounted for using the equlty method income tax expense Income tax expense Profit for the period 7 642Explanation / Answer
Profit on sale of asset and share of net profit of associates and joint venture would be shown under "Other Revenue" in Revenue part as this is not generated out of main activities of business. Further gain on fair value adjustment and gain on fair value of derivative need to be shown under second part-Other Comprehensive Income (OCI). None of the above items are required to be excluded while calculating profit.
You just need to change the classification of the items and no need to exclude them.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.