What is the accounting treatment & presentation in Financial Statements?

Although this Standard uses the terms ‘other comprehensive income’, ‘profit or loss’ and ‘totalcomprehensive income’, an entity may use other terms to describe the totals as long as the meaning is clear.For example, an entity may use the term ‘net income’ to describe profit or loss.

IAS18 Revenue defines revenue and requires an entity to measure it at the fair value of the considerationreceived or receivable, taking into account the amount of any trade discounts and volume rebates the entityallows. An entity undertakes, in the course of its ordinary activities, other transactions that do not generaterevenue but are incidental to the main revenue-generating activities. An entity presents the results of suchtransactions, when this presentation reflects the substance of the transaction or other event, by netting anyincome with related expenses arising on the same transaction. For example:(a) an entity presents gains and losses on the disposal of non-current assets, including investments andoperating assets, by deducting from the proceeds on disposal the carrying amount of the asset andrelated selling expenses; and(b) an entity may net expenditure related to a provision that is recognised in accordance with IAS37Provisions, Contingent Liabilities and Contingent Assets and reimbursed under a contractualarrangement with a third party (for example, a supplier’s warranty agreement) against the relatedreimbursement.

As a minimum, the statement of comprehensive income shall include line items that present thefollowing amounts for the period:(a) revenue;(b) finance costs;