The preparation of the income statement for a merchandising company that is following international financial reporting standards (IFRS)is not significantly different from the approach used by companies following accounting standards for private enterprises (ASPE).

Question

Quizplus · Accepted Answer

Both IFRS and ASPE have similar fundamental principles for the preparation of financial statements, including the income statement. The main differences lie in the level of detail and disclosure requirements, rather than the basic approach to recording revenues, costs of goods sold, and expenses.

The Preparation of the Income Statement for a Merchandising Company