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Q4-1ISTQ

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Intermediate Accounting (Kieso)
Found in: Page 198

Short Answer

Which of the following is not reported in an income statement under IFRS?

(a) Discontinued operations.

(b) Extraordinary items.

(c) Cost of goods sold.

(d) Income tax.

Option b is the correct answer.

See the step by step solution

Step by Step Solution

Meaning of IFRS

The term IFRS refers to the International Financial Reporting Standards issued by the International Accounting Standards Board for presenting a company's financial performance and position understandably.

The explanation for the correct option

An income statement prepared under the IFRS does not include the extraordinary items section. Also, it does not consider the other comprehensive income or loss like US GAAP does.

The explanation for the incorrect option

An income statement format of IFRS captures mainly all the items associated with revenues and expenses. It includes income and losses from discontinued operations, the cost of goods sold, and applicable tax on the net income generated by a business entity.

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