In respect to the statement of profit or loss and other comprehensive income of an entity, IAS 1 Presentation of Financial Statements prescribes:
A) a fixed format for the presentation of items in the statement of profit or loss and other comprehensive income;
B) line items that are considered to be of sufficient importance to warrant presentation;
C) the presentation of line items of revenue, but not of income;
D) the presentation of line items comprising total expenses, but not line items comprising total revenue.

Question

Quizplus · Accepted Answer

IAS 1 requires the presentation of items in the statement of profit or loss and other comprehensive income in a format that is relevant, reliable and understandable to the users of financial statements. The standard does not prescribe a fixed format for the presentation of items, but requires the presentation of line items that are considered to be of sufficient importance to warrant presentation. Therefore, choice B is the correct answer. Choices A, C, and D are incorrect because they do not reflect the requirements of IAS 1.

In Respect to the Statement of Profit or Loss and Other