COM 270 Chapter Notes - Chapter 2: International Financial Reporting Standards, Income Statement, Accounting Equation
29 Jan 2017
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Depends on the size of the company. Material: info that is critical to the user. Used to forecast future costs (cid:18991) gross pro t - operating expenses = pro t from operations (e) pro ts from discontinued operations: operations that will not be continued the next period. Both include other expenses that are still considered under management"s control. Used to evaluate/determine management"s bonus (f) pro ts before income tax expense: all expenses & revenues from the company"s non-operating activities. Not under management"s control (g) net income: the difference between pro t before income tax & income tax expense pro t - income taxes = net income. Required for the contents of all other statements (cid:18992) (cid:18993) (2) statement of changes in equity - connects the statement of income to the statement of nancial position. Uses last year"s closing balances as this this year"s opening balances.
