Under AASB 101 additional line items,headings and subtotals:
A) are precluded as they provide unnecessary information that may confuse the user.
B) shall be presented on the face of the statement when such presentation is relevant to an understanding of the entity's financial performance.
C) shall be presented on the face of the statement when such items can be measured reliably and it is probable these events will occur.
D) will only be included in the notes to the income statement if they are relevant to an understanding of the entity's financial performance.

Question

Quizplus · Accepted Answer

According to AASB 101, additional line items, headings, and subtotals shall be presented on the face of the statement when such presentation is relevant to an understanding of the entity's financial performance. Therefore, option B is the correct choice. Option A is incorrect as additional line items, headings, and subtotals can provide relevant information to the user. Option C is incorrect as the existence of these items is not dependent on the probability of an event occurring or being measured reliably. Option D is incorrect as these additional items may need to be presented on the face of the statement rather than just being included in the notes to the financial statement.

Under AASB 101 Additional Line Items,headings and Subtotals