In respect to the statement of profit or loss and other comprehensive income of an entity, IAS 1 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 entities to present their statement of profit or loss and other comprehensive income in a manner that displays items of income, expenses, gains, and losses recognized during the reporting period categorized into subtotal(s) relating to profit or loss and other comprehensive income. It also prescribes line items that are considered to be of sufficient importance to warrant presentation. Therefore, option B is the correct answer. Option A, C, and D are incorrect because IAS 1 does not prescribe a fixed format for the presentation of items, it prescribes the presentation of both revenue and income, and it also requires the presentation of line items comprising total revenue, respectively.

In Respect to the Statement of Profit or Loss and Other