Illustrations of Income statement
- Profit/Loss on disposal of non-current assets
- Material write down or reversal of write down on assets e.g. PPE inventory and debtors.
- Restructuring and re-organization cost e.g. redundancy payments
- Litigation costs – payments made as a result of court decisions
The format of the income statement is given as follows:
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ABC LTD
INCOME STATEMENT FOR THE YEAR ENDED 31/12/
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£
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£
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Revenue
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x
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Cost of sales
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(x)
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Gross profit
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x
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Other incomes (e.g. investment income)
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x
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x
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Expenses
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Distribution costs
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x
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Administration costs
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x
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Other expenses
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x
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Finance costs
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x
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(x)
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Profit before
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x
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Income tax expense
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(x)
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Profit for the period
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xx
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a) By Nature
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ABC LTD
INCOME STATEMENT FOR THE YEAR ENDED 31/12/
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£
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£
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|
Revenue
|
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x
|
|
Other incomes
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x
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|
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x
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Expenses
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Raw materials consumed
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x
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Changes in finished goods and work in progress
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x
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Depreciation and armortisation
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x
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Employee benefits
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x
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Other expenses
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x
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Finance costs
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x
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(x)
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Profit before tax
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x
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Income tax expenses
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(x)
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Profit for the period
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xx
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