P&L and OCI prep

Question 1

How do you write out the title for P&L and OCI?

Answer 1

(Company Name) - Statement of profit or loss and other comprehensive income for the year ended (date)

E.g
Sunrise Plc - Statement of profit or loss and other comprehensive income for the year ended 31 December 2024

Question 2

How to write out a full Statement of Profit or Loss and Other Comprehensive Income?

Answer 2

Title: E.g.: Sunrise plc - Statement of Profit or Loss and other comprehensive income for year ended 31 December 2024

. Revenue

. Cost of Sales

• Gross profit

. Selling & Distribution Expenses

. Admin Expenses

. Other Income

. Other Expenses

• Operating Profit

. Finance costs

. Profit before tax

. Tax Expense

. Profit for the year

• Other comprehensive income

. Items that will not be reclassified to profit or loss

. Revaluation gain

. Total comprehensive income

Question 3

What gets you your gross profit?

Answer 3

Revenue - Cost of Sales

Question 4

How to you get to your ‘Operating Profit’?

Answer 4

. Gross Profit

• Selling & Distribution Expenses
• Admin Expenses

+ Other Income

• Other Expenses

Question 5

How do you get to your ‘Profit before tax’

Answer 5

. Operating Profit

Less (-)

. Finance Costs

Question 6

How do you get to your ‘Profit for the year’?

Answer 6

. Profit before tax

Less (-)

. Tax Expense

Question 7

What must be done with your ‘Profit for the year’?

Answer 7

. You must transfer it to S.O.C.E and must be accumulated in Retained Earnings

Question 8

How do you get to Total Comprehensive Income?

Answer 8

. Profit of the Year
+ or - your other comprehensive income

Usually in OCI, it either includes revaluation gain or loss.

If it is a gain, you add it to your sum

If it is a loss, you take it away from your sum

Subsequently, this will lead to your Total OCI

Question 9

What must be done with your revaluation gain or loss?

Answer 9

. It must be accumulated in Revaluation Reserves