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NCEA Accounting Update Income Statement Preparation

NCEA Accounting Update Income Statement Preparation. 2006 Presented by Elizabeth Pitu St Paul's Collegiate School. Income Statement. Income statements can be shown and assessed with classifications by nature OR by function. Income Statement by Function.

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NCEA Accounting Update Income Statement Preparation

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  1. NCEA Accounting UpdateIncome Statement Preparation 2006 Presented by Elizabeth Pitu St Paul's Collegiate School © Elizabeth Pitu

  2. Income Statement • Income statements can be shown and assessed with classifications by nature OR by function. © Elizabeth Pitu

  3. Income Statement by Function • Disclosure requirements are to be shown by classification of income and expenses by function using the totals for each function. Where an income statement has been prepared by function, the nature of expenses must be shown by way of note. © Elizabeth Pitu

  4. Example of an Income Statement prepared according to the “Function “ classification © Elizabeth Pitu

  5. Income Statement by Function © Elizabeth Pitu

  6. Income Statement by Function © Elizabeth Pitu

  7. Income Statement by Function © Elizabeth Pitu

  8. Income Statement by Function © Elizabeth Pitu

  9. Income Statement by Function © Elizabeth Pitu

  10. Income Statement by Function In the Income Statement Administrative expenses • total administrative expenses • no disclosure note number • Operating Profit - Note 4 will provide the “Expenses by nature” information © Elizabeth Pitu

  11. Income Statement by function © Elizabeth Pitu

  12. Income Statement by function © Elizabeth Pitu

  13. Income Statement by Function © Elizabeth Pitu

  14. Income Statement by Function © Elizabeth Pitu

  15. Income Statement by nature © Elizabeth Pitu

  16. Example of an Income Statement showing disclosure requirements by classification of income and expenses by nature. © Elizabeth Pitu

  17. Income Statement by nature © Elizabeth Pitu

  18. Income Statement by nature © Elizabeth Pitu

  19. Income Statement by nature • Finance costs and taxation are exactly the same as for an Income Statement by function • Details of finance costs are shown by way of a disclosure note • There is no disclosure note for taxation © Elizabeth Pitu

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