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ACCA Applied Knowledge · Financial Accounting · Statement of profit or loss and other comprehensive income

Under IAS 1 Presentation of Financial Statements, which of the following items is presented within other comprehensive income (OCI) in a company's statement of profit or loss and other comprehensive income?

A revaluation surplus on property, plant and equipment is reported in other comprehensive income. Finance costs, depreciation and gains on disposal of vehicles are all ordinary income or expense items that belong in profit or loss, so only the revaluation surplus is shown in OCI.

  1. ARevaluation surplus arising on property, plant and equipmentCorrect
  2. BFinance costs on a bank loan
  3. CDepreciation of plant
  4. DProfit on disposal of a motor vehicle

Explanation

A revaluation gain on property, plant and equipment is credited to a revaluation surplus through OCI. Finance costs, depreciation and profit on disposal are all items of profit or loss and are reported before profit for the year.

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