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IAI Actuarial Core Principles · Business Finance · Construction and features of company accounts and reports

In a company's Statement of Profit or Loss and Other Comprehensive Income, which of the following items would be presented within other comprehensive income rather than in the profit or loss section?

A gain on revaluing land held as property, plant and equipment goes to other comprehensive income and then to a revaluation reserve in equity. Interest, depreciation, disposal losses and receivable impairments are expenses that reduce profit or loss.

  1. AInterest expense on a bank loan
  2. BDepreciation on plant and machinery
  3. CGain on revaluation of land held as property, plant and equipmentCorrect
  4. DLoss on sale of a delivery vehicle
  5. Impairment of trade receivables

Explanation

A revaluation surplus on property, plant and equipment is recognised in other comprehensive income and accumulated in equity. Interest, depreciation, losses on disposal and receivable impairments are all ordinary expenses charged to profit or loss.

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