Skip to content

CFA Level I · CFA Level I Exam · Introduction to Financial Statement Analysis

Which of the following items is most likely reported in other comprehensive income rather than in profit or loss under IFRS?

A revaluation surplus on property, plant and equipment is reported in other comprehensive income and accumulated in equity. Interest expense and depreciation are ordinary expenses that reduce profit or loss, so they are not taken to other comprehensive income.

  1. AInterest expense on a bank loan
  2. BDepreciation of equipment
  3. CRevaluation surplus on property, plant and equipmentCorrect

Explanation

A revaluation increase in PP&E under the revaluation model is recognised in other comprehensive income and accumulated in equity. Interest expense and depreciation are recognised in profit or loss.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Financial Statement Analysis shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Financial Statement AnalysisFree diagnostic mock

More Introduction to Financial Statement Analysis questions