Profit before financing and income taxes
Profit before financing and income taxes is an IFRS 18 subtotal comprising operating profit and amounts in the investing category. It precedes the financing and income tax categories in a typical statement. If financing-category expenses are 15, the next profit before income taxes is 95, assuming no other relevant items.
Worked example
Operating profit of 100 plus investing-category income of 10 gives this subtotal of 110.
Common mistake
Treating it as identical to operating profit when investing-category income or expenses exist.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | F1 | Direct | Official assessment-window verification pending |
| CIMA | F2 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |