Under IAS 1 additional line items,headings and subtotals:
A)are precluded as they provide unnecessary information that may confuse the user.
B)shall be presented on the face of the statement when such presentation is relevant to an understanding of the entity's financial performance.
C)shall be presented on the face of the statement when such items can be measured reliably and it is probable these events will occur.
D)will only be included in the notes to the statement of profit and loss if they are relevant to an understanding of the entity's financial performance.

Question

Quizplus · Accepted Answer

Under IAS 1, additional line items, headings, and subtotals shall be presented on the face of the statement when such presentation is relevant to an understanding of the entity's financial performance. This means that if the information is necessary for the user to understand the financial performance of the entity, it should be included on the statement. Therefore, option B is the correct answer. Options A, C, and D are incorrect as they provide either incorrect or incomplete information about the requirements of IAS 1.

Under IAS 1 Additional Line Items,headings and Subtotals