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IAS 1 presentation of financial statements requires certain items to be presented on the face of the statement of profit or loss for the year. Which of the following items must be disclosed on the face of the statement of profit or loss for the year? 1)revenue(2)finance cost (3)closing inventory (4) depreciation for the year (5) tax expense (6) dividends paid.My question is why depreciation is not included in profit or loss statement as it is an expense
Depreciation is certainly an expense, but IAS 1 does not require every individual expense to be show separately on the face of the SOPL. Instead the total of all of the expenses under the various categories are shown as I explain in my free lectures (the chapter on limited companies).
Details about the depreciation will appear as notes to the accounts, but will not appear on the SOPL itself.
(Our lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well 🙂 )
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