IAS 1 and statement of profit or loss and OCI

In this lesson

1. 0:00 Introduction to single entity financial statements
2. 0:32 IAS 1 presentation standards and requirements
3. 2:01 Material items and separate disclosure rules
4. 3:07 Statement of profit and loss structure
5. 3:31 Other comprehensive income explained
6. 4:46 Recommended P&L format walkthrough
7. 6:29 Worked example: Crimson trial balance
8. 8:06 Calculating cost of sales and depreciation
9. 10:24 Completing the statement and OCI items

About this lesson

You'll discover how to structure the performance statement correctly, distinguish between items shown on the face versus in the notes, and understand how OCI items are categorised—whether they recycle to profit or loss later, or remain permanently in reserves. Through a worked example using a trial balance, you'll apply these principles step by step, including calculating cost of sales with inventory adjustments and depreciation, handling revaluation gains, and arriving at total comprehensive income. This session covers the complete format recommended by IAS 1, starting with revenue and cost of sales to reach gross profit, then deducting operating expenses to show operating profit, followed by finance costs and tax to reach profit for the year. You'll then add other comprehensive income items—such as revaluation gains on property, plant and equipment under IAS 16, or fair value movements on certain financial assets—to calculate total comprehensive income. The practical worked example demonstrates how to handle real complications: adjusting closing inventory for damaged stock using net realisable value, calculating depreciation on both a straight-line and reducing balance basis, and presenting the complete statement clearly. By mastering this structure, you'll be confident tackling any performance statement question on the FR exam.

Duration: 11m