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Additional resources for ACCA F3 (INT) Financial Accounting Study Text
The difference between income and expenses is profit or loss. com for Q/As, Notes & Study Guides 27 Paper F3: Financial accounting (International) An income statement might be presented as a separate financial statement. Alternatively, the same information might be included as the first part of a statement of comprehensive income. The IASB therefore uses the term ‘profit or loss’ to refer to items of income or expense that will be reported in either the income statement or in the ‘profit and loss’ part of a statement of comprehensive income.
When the goods are delivered to the customer, the seller often provides a delivery note, stating the quantity and type of goods have been delivered. When goods are sent by post, or when delivery might take some time, the seller might send notice to the customer that the goods have been despatched and are on their way (in a goods despatched note). For example, with internet sales the seller will often send a goods despatched note to the customer in the form of an e-mail message. The seller will also send an invoice to the customer.
From 1 January 2009, entities should report this information in either of two ways: in a statement of comprehensive income, which reports both ‘profit and loss’ and also ‘other comprehensive income’, or in two statements, an income statement followed by a statement of comprehensive income. For the purpose of your examination, the income statement is the more important of these two statements. Information about transactions by the entity with its owners in their capacity as owners (for example new share issues or dividend payments by a company) are reported in another financial statement called the statement of changes in equity or SOCIE.
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