Merry Christmas !
Icon done by Aleem Dabiedeen
Statement of Comprehensive Income
This note introduces students to the basic elements of this financial statement, providing a format to guide students in preparing the statement of comprehensive income as required by specific objective 3 of module 2 in the CAPE Accounting Syllabus
Author:Sajiv Jadoonanan
Edu Level: Unit1
Date: Dec 12, 2024
⏱️Read Time:
THE STATEMENT OF COMPREHENSIVE INCOME
The purpose of the statement of comprehensive income is to illustrate the amount of profit or loss an organization has earned or incurred over a given reporting period.
The Statement of Comprehensive Income show income which consists of:
Income – money earned for providing goods and services to customers.
Expenses – value of resources used in the provision of goods and services to customers.
• OTHER REVENUE AND GAINS – Add to Gross profit.
• OPERATING PROFIT - profit before interest tax
• INTEREST EXPENSE AND INTEREST INCOME – disclosed after operating profit
• Revaluation gain – treated as Other Comprehensive Income, which appears below profit after tax or disclose as other revenues and gains for published accounts from the normal operations of the business as other revenues and gains
In this format expenses are classified based on the business function to which they focus is on hat role or purpose the expenses serve in the business. For example:
1.)Administrative expenses- salaries, rent, utilities relating to administration
2.)Selling and distribution expenses-transport/delivery, advertising, salaries or sales staff
3.)Cost of Sales-All costs associated with producing goods sold
FORMAT FOR STATEMENT OF COMPREHENSIVE INCOME
Business Name
Statement of Comprehensive Income
For the year ended
| $ | $ | $ | |
|---|---|---|---|
| Sales | XX | ||
| Less: Sales Returns | X | ||
| Less: Sales Discounts & Allowances | X | ||
| (X) | |||
| Net Sales | xx | ||
| LESS: COST OF GOODS SOLD | |||
| Beginning Inventory | X | ||
| Add: Purchases | x | ||
| Less: Purchase Returns | x | ||
| Less: Purchases Discounts & Allowances | x | ||
| Net Purchases | xx | ||
| Add: Freight Inwards / Carriage Inwards | x | ||
| Add: Custom Duty | x | ||
| Cost of Goods Purchased | X | ||
| Cost of Goods Available for Sale | xx | ||
| Less: Ending Inventory | (X) | ||
| Cost of Goods Sold | (X) | ||
| GROSS PROFIT/LOSS | XX | ||
| LESS: OPERATING EXPENSES | x | ||
| Advertising | x | ||
| Freight Out | x | ||
| Depreciation – delivery van | x | ||
| Wages & Salaries – sales staff | x | ||
| Bad Debts | x | ||
| Total Selling Expenses | xx | ||
| Rent Expense | x | ||
| Wages & Salaries – office staff | x | ||
| Office Expenses | x | ||
| Total Administrative Expenses | xx | ||
| Total Operating Expenses | (xx) | ||
| INCOME FROM PRIMARY OPERATIONS | XX | ||
| OTHER REVENUES | x | ||
| Interest Revenue | x | ||
| Investment Revenue | x | ||
| Rent Revenue | x | ||
| Commissions Received | x | ||
| Gain on Sale of Fixed Assets/Investments | x | ||
| Total Other Revenues | X | ||
| OTHER EXPENSES | |||
| Loss Due to Fire, Flood, Vandalism | x | ||
| Loss on Marketable Securities | x | ||
| Loss on Sale of Fixed Assets/Investments | x | ||
| Total Other Expenses | (x) | ||
| PROFIT BEFORE INTEREST & TAX | xx | ||
| Finance Cost: Interest Expense | (x) | ||
| PROFIT BEFORE TAX | xx | ||
| Less: Tax Expense | (x) | ||
| PROFIT AFTER TAX | XX |