COMM321 Lecture Notes - Retained Earnings, Financial Instrument, Share Capital
12 May 2013
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Objective: evaluating past financial performance (net income) & be able to predict future financial performance / cash flows. Must separate continuing operations from discontinued operations. Operating section: sales cogs (gross profit) sg&a expenses = operating income. Non-operating section: other incomes & gains (interest/dividend revenue, gain on sale); other. Expenses & losses (interest expense, inventory write-off, loss on sale) Income tax expense (on income from continuing operations only) Income(loss) from operations for period owned (net of tax) Ops includes those disposed of & held for sale. If held for sale, following criteria must be met: Income (loss) for the period in discontinued operations net of tax. Asset is written down to lower of carrying value or fair value. On b/s ifrs: current assets pe gaap: retains original classification. Extraordinary items (hurricanes) no more; (other items) sig. diff from entity"s typical business ops.
