PRACTICAL
PRESENTATION OF FS
FUNCTION METHOD
Company name
Statement of profit or loss and other comprehensive income for the year ended …
Notes R R
2020 2019
Revenue X X
COS (O/S + prod – C/S + depreciation + impairment) (X) (X)
Gross Profit X X
Admin expenses (sundry, dep. Of admin building) X X
Distribution expenses (dep. Motor vehicle, sundry) X X
Other expenses (GW imp, inc in all. doubtful debts) X X
Other income (rent, dividends) X X
Finance costs (int on loan, debentures) (X) (X)
Profit before tax X X
Income tax expense 5 X X
Profit for the year X X
Other comprehensive income
Items that will not be reclassified to profit and loss
Revaluation of land, net of tax X X
Total comprehensive income X X
,NOTES
For COS you take:
o/b + purchases + dep. (assets making inv) + impairment (write down) – c/b = COS
For change in estimate always start with the CA at the beg of the year the change takes
place
Interest on debentures is finance cost
When something is destroyed, the insurance proceeds go in operating income, but the CA
goes in operating expenses (work out net loss)
Finance costs can sometimes be the shares (when do you EIR table), the interest part
, NATURE METHOD
Company name
Statement of profit or loss and other comprehensive income for the year ended …
Notes R R
2020 2019
Revenue X X
COS (O/S + prod – C/S + depreciation + impairment) (X) (X)
Gross Profit X X
Operating expenses X X
Depreciation X X
Impairment X X
Sundry expenses
Other income (rent, dividends) X X
Finance costs (int on loan, debentures) (X) (X)
Profit before tax X X
Income tax expense 5 X X
Profit for the year X X
Other comprehensive income
Items that will not be reclassified to profit and loss
Revaluation of land, net of tax X X
Total comprehensive income X X