In respect to the statement of profit or loss and other comprehensive income of an entity, AASB 101 prescribes:
A) the presentation of line items of revenue, but not of income.
B) line items that are considered to be of sufficient importance to warrant presentation.
C) the presentation of line items comprising total expenses, but not line items comprising total revenue.
D) a fixed format for the presentation of items in the statement of profit or loss and other comprehensive income.

Question

Quizplus · Accepted Answer

AASB 101 prescribes that entities must present line items in the statement of profit or loss and other comprehensive income that are considered to be of sufficient importance to warrant presentation. This means that line items for both revenue and expenses should be included, but only those that are significant enough to be meaningful to users of the financial statements. AASB 101 does not prescribe a fixed format for the presentation of these line items.

In Respect to the Statement of Profit or Loss and Other