Statement of profit or loss
The statement of profit or loss reports income and expenses for a period and the resulting profit or loss, using applicable presentation categories and subtotals. Under the IFRS 18 format relevant to FA, present operating, investing and financing categories and required subtotals. For a simplified example, operating profit 180 plus investing income 20 gives profit before financing and income taxes of 200; financing expense 30 gives profit before income taxes of 170.
Worked example
For an ordinary non-financial entity, operating profit of $180,000 plus investing-category income of $20,000 gives profit before financing and income taxes of $200,000. Deduct financing expense of $30,000 to give profit before income taxes of $170,000, assuming no other categories affect those subtotals.
Common mistake
Under IFRS 18, operating and other categories matter; other comprehensive income is presented separately or in a combined statement.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | F2 | Direct | July 2027–August 2028 |
| 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 |
Related terms
Also called: Profit or loss account, Income statement