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Contents
5.2 Small companies – exemptions.
5.2.1 Extract from FRS102: Section 5.1A.
5.3 Presentation of total comprehensive income.
5.3.1 Extract from FRS102: Section 5.2-5.3.
5.3.2.2 Implications of changing between the two layouts.
5.4 Single-statement approach.
5.4.1 Extract from FRS102: Section 5.5-5.6, Section 5.7D and Section 5.9.
5.4.2.2.1 Profit and loss account/income statement.
5.4.2.2.2 Other comprehensive income.
5.4.2.3 Practical application of format 1 showing the single statement approach for group.
5.4.2.3.1 Practical application of single statement approach for an individual entity.
5.5.1 Extract from FRS102: Section 5.7-5.7D and Section 5.9.
5.5.2.2.1 Profit and loss account/income statement formats.
5.5.2.2.2 Other comprehensive income – statement of comprehensive income.
5.5.2.3 Practical application of the two statement approach showing format 1.
5.5.2.3.1 Two statement approach for a Group.
5.5.2.3.2 Two statement approach for an individual entity (i.e. not group accounts).
5.6 Alternative profit and loss format.
5.6.1 Extract from FRS102: Section 5.7B-5.7C.
5.7.1 Extract from FRS102: Section 5.7E-5.7F.
5.7.2.1 Discontinued operation and when it is to be considered to be discontinued.
5.7.2.2 Disclosure requirements for discontinued operations.
5.8 Prior year/period adjustments.
5.8.1 Extract from FRS102: Section 5.8.
5.9 Exceptional items and extraordinary items.
5.9.1 Extract from FRS102: Section 5.9A and Section 5.10-5.10B.
5.9.2.1.1 Exceptional items defined.
5.9.2.1.2 Examples of exceptional items.
5.9.2.1.4 Disclosure requirements of exceptional items in the notes.
5.9.2.1.5 Illustration of disclosure of exceptional items.
5.9.2.1.5.1 Exceptional items shown on face of profit and loss account.
5.9.2.1.5.2 Exceptional items shown in notes and not of the face of profit and loss account.
5.9.2.1.5.3 Exceptional itekm accounting policy disclosure.
5.10.1 Extract from FRS102: Section 5.9B.
5.11.1 Extract from FRS102: Section 5.11.
5.11.2.2 Analysis by function of expense.
5.11.2.2.2 Format 1 Companies Act 2014 – for Republic of Ireland entities.
5.11.2.2.2 Format 1 of Companies Act 2006 – for UK entities.
5.11.2.3 Analysis by nature of expense.
5.11.2.3.1 Format 2 of Companies Act 2006 – for UK entities.
5.11.2.3.2 Format 2 of Companies Act 2014 for Republic of Ireland entities.
5.12.1.2 For UK Parent Company.
5.12.1.3 For Republic of Ireland Parent Company.
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5.6 Alternative profit and loss format
5.6.1 Extract from FRS102: Section 5.7B-5.7C
5.5B An entity choosing to apply paragraph 1A(2) of Schedule 1 to the Regulations and adapt one of the profit and loss account formats shall, as a minimum, include in its statement of comprehensive income line items that present the following amounts for the period:
(a) revenue;
(b) finance costs;
(c) share of the profit or loss of investments in associates (see Section 14 Investments in Associates) and jointly controlled entities (see Section 15 Investments in Joint Ventures) accounted for using the equity method;
(d) profit or loss before taxation;
(e) tax expense excluding tax allocated to items (h) and (i) below or to equity (see paragraph 29.27);
(f) as set out in paragraph 5.7E (including a column identified as discontinued operations) a single amount comprising the total of:
(i) the post-tax profit or loss of a discontinued operation; and
(ii) the post-tax gain or loss attributable to the impairment or on the disposal of the assets or disposal group(s) constituting discontinued operations.
(g) profit or loss;
(h) each item of other comprehensive income classified by nature (excluding amounts in (i));
(i) share of other comprehensive income of associates and jointly controlled entities accounted for by the equity method; and
(j) total comprehensive income.
5.5C An entity may include additional line items in the income statement and amend the descriptions used in paragraph 5.5B, and the ordering of items, when this is necessary to explain the elements of financial performance, providing the information given is at least equivalent to that required by the profit and loss account format had it not been adapted.
5.6.2 OmniPro comment
5.6.2.1 Overview
The profit and loss should follow the layout of the Companies Act or can be laid out in the alternative format in Section 5.5B and Section 5.5C of FRS 102. Section 5.5B and 5.5C of FRS 102 provides a different choice as to what format the profit and loss account/income statement can be presented in. It provides an IFRS type/alternative layout and wording. This Act permits the above use as long as the substance on the requirements in Schedule 3 has been compiled with.
Additional lines can be added as per Section 5.5C of FRS 102 if it increases understanding for the reader. When this alternative format is used the entity still has the choice to use the single statement approach as discussed at 5.4.2 or the two statement approach as discussed at 5.5.2.
5.6.2.2 Example of alternative basis for the statements of comprehensive income – One statement approach
The below illustrates the requirements for the single statement approach. The points made at 5.5.2.1 are still applicable if the statement approach is utilised.
Example 4: Consolidated Statement of Comprehensive/Income statement approach – Alternative Approach
| For the Year Ended 31 December 2015 | |||
| Notes | 2015 | 2014 | |
| CU | CU | ||
| Revenue | 1 | XXXXX | XXXXX |
| Cost of sales |
(XXXX)
|
(XXXX)
|
|
| Gross profit |
2 |
XXXX | XXXX |
| Selling and distribution costs | (XXX) | (XXX) | |
| Administrative expenses | (XXX) | (XXX) | |
| Other operating income |
XXX
|
XXX
|
|
| Group operating profit | 3 | XXX | XXX |
| Share of profit in associates | 4 | XXX | XXX |
| Share of profit in joint venture | 5 | XXX | XXX |
| Profit before interest and taxation | XXXX | XXXX | |
| Finance income | 6 | XXX | XXX |
| Finance costs | 7 |
(XXX)
|
(XXX)
|
| Profit before taxation | XXXX | XXXX | |
| Income tax on profit | 8 |
(XXX)
|
(XXX)
|
| Profit for the financial year | 1,000,00 | 500,000 |
| cash flow hedges | ||
| – effective portion of changes in fair value to cash flow hedges | 9 XXX | XXX |
| – fair value of cash flow hedges transferred to income statement | 10 XXX | XXX |
| Actuarial loss in respect of the defined pension scheme | 11 (XXX) | (XXX) |
| Share of other comprehensive income of associates | 12 XXX | (XXX) |
| Share of other comprehensive income of joint controlled entities | 12 XXX | (XXX) |
| Gain/(loss) on revaluation of intangible assets | 12 XXX | (XXX) |
| Gain/(loss) on revaluation of property, plant and equipment | 13 XXX | (XXX) |
| Gain/(loss) on revaluation of subsidiaries, associates, etc. | 14 XXX | (XXX) |
| Deferred tax on components of other comprehensive income | 15 XXX | XXX |
| Total other comprehensive income for the year net of tax | 200,000 | (100,000) |
| Total comprehensive income for the year | 1,200,000 | 400,000 |
| Total comprehensive income for the financial year attributable to: | ||
| Owners of the parent company |
1,200,000
|
400,000
|
| 1,200,000 | 400,000 | |
| Profit for the financial year attributable to: | ||
| Owners of the parent company |
1,000,000
|
400,000
|
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Example 1: Example of Single statement approach for a Group.
Example 2: Example of Single statement approach for an individual entity (i.e. not group accounts).
Example 3: Two statement approach for a Group.
Example 3(a): Two statement approach for an individual entity (i.e. not group accounts).
Example 4: Consolidated Statement of Comprehensive/Income statement approach – Alternative Approach.
Example 5: Discontinued operations not ceased.
Example 6: Exceptional item disclosure note for an accounting policy.
Example 7: See below the extract from format 1 of the Companies Act 2006 for the UK.
Example 8 See below the extract from format 1 of the Companies Act 2014 for the Republic of Ireland.
Example 9 See below the extract from format 2 of the Companies Act 2014 for the Republic of Ireland.
Example 10: See below the extract from format 2 of the Companies Act 2006 for the UK.
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