Is profit from disposal listed in the other income section of the SOPL? And if it is a loss is it listed as an expense? Also I know dividends paid do not form part of the SOPL but what about dividends received? Isn't that in itself income?
Also where is depreciation expense listed in SOPL? Is it in the administrative expenses?
Ask the Tutor ACCA FA
Statement of Profit or Loss
5y ago#1Profit on disposal is treated as negative depreciation in the SOPL and so reduced the overall depreciation expense.
Loss on disposal increases the depreciation expense.
Dividends received are income.
The heading under which depreciation appears depends on what assets it refers to. If it is a manufacturing company and it is depreciation of the machines, then it is included under cost of sales.
If the depreciation is on office equipment then it is admin expenses.
If it is delivery vans, then it is selling and distribution expenses.
I do explain all of this in my free lectures. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
So dividends received are in SOPL, Other Comprehensive Income and Statement of Cash flows?
5y ago#3They appear in the SOPL (and therefore automatically appear in the Statement of Comprehensive Income) and in the Statement of Cash Flows.
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