Excluding other comprehensive income in the definition of profit, which of the following is not included in the calculation of a company's profit or loss?
A) Dividends received
B) Gain on the sale of fixed assets
C) Expense on the impairment of assets held
D) Adjustments from translation of the financial statements of a foreign operation

Question

Quizplus · Accepted Answer

Adjustments from translation of the financial statements of a foreign operation are typically included in other comprehensive income, not in the profit or loss statement. This is because they represent unrealized gains or losses due to changes in exchange rates, not the company's operational performance.

Excluding Other Comprehensive Income in the Definition of Profit, Which