1.Penyata pendapatan membantu pengguna-pengguna penyata kewangan untuk;
- menilai prestasi syarikat pada masa lepas,
- memberikan asas untuk meramal prestasi masa depan, dan
- (3) membantu menilai risiko atau ketidakpastian memenuhi alirtunai masa depan.
2.Limitasi penyata pendapatan ialah;
- item-item yang tidak boleh diukur tidak dilaporkan dalam penyata pendapatan,
- angka-angka pendapatan akan terjejas dengan penggunaan kaedah perakaunan yang berbeza, dan
- pengukuran pendapatan melibatkan judgment.
Elemen-elemen dalam Penyata Pendapatan
3.Elemen utama dalam pendapatan bersih ialah hasil, belanja, untung, dan rugi. Perbezaan antara hasil dan untung serta perbezaan antara belanja dan kerugian bergantung kepada aktiviti-aktiviti perniagaan syarikat. Apabila alir masuk atau pertambahan aset hasil daripada aktiviti perniagaan yang dijalankan akan menjanakan pendapatan. Sebaliknya, sekiranya alir keluar atau penggunaan aset hasil dari operasi aktiviti perniagaan, maka belanja akan dilibatkan. Alir masuk dan alir keluar aktiviti bukan operasi perniagaan akan menjanakan laba (gain) dan rugi.
Single-Step vs. Multiple-Step
4.Penyata pendapatan mungkin akan dibentangkan dalam format single-step atau multiple-step.
Penyata pendapatan single-step memperolehi pendapatan bersih dengan jumlah kos dan belanja dari jumlah hasil dalam satu 'langkah tunggal'. Cukai pendapatan biasanya ditunjukkan sebagai item yang terasing dari belanja-belanja (biasa akhir sekali) untuk menunjukkan perhubungannya dengan pendapatan sebelum cukai.
The multiple-step format separates results achieved by regular operations of the entity from those obtained by nonoperating activities. Expenses are also classified by function such as cost of sales, selling, and administrative. The multiple-step format provides more information to financial statement users than does the single-step format; however, both are found in actual practice.
5.An income statement is composed of various sections that relate to different aspects of the earning process. The seven sections identified in the chapter, in the general order of their appearance in the income statement, are:
(1)Operating Section. Revenues and expenses from the entity’s principal operations.
- Sales or revenue section.
- Cost of goods sold section.
- Selling expenses.
- Administrative or general expenses.
- Other revenues and gains.
- Other expenses and losses.
(4)Discontinued Operations. Material gains and losses resulting from disposal of a segment of the business.
(5)Extraordinary Items. Unusual and infrequent material gains and losses.
(6)Earnings Per Share.
The informative content of the income statement may be further enhanced by adding additional subsections to the above major sections.
All-Inclusive Concept vs. Current Operating Performance Concept
6.For the most part, accountants tend to agree on the composition of items included on the income statement. However, certain unusual items have stirred controversy in regard to the effect they should have on the presentation of net income. Some accountants favor an all-inclusive concept that reports the unusual items directly in the income statement. Those who support the current operating performance concept to income measurement believe that the unusual items should be closed directly to retained earnings (not included in computing net income). APB Opinion No. 9 adopted a modified all-inclusive concept and requires application of this approach in practice.
Reporting Irregular Items
7.In an attempt to provide financial statement users with the ability to better determine the long-range earning power of an enterprise, certain professional pronouncements require that the following irregular items be highlighted in the financial statements.
C.Unusual gains and losses.
D.Changes in estimates.
E.Corrections of errors.
8.A discontinued operation occurs when
- the results of operations and cash flows of a component of a company have been (or will be) eliminated from the ongoing operations, and
- there is no significant continuing involvement in that component after the disposal transaction.
9.Extraordinary items are defined as material items that are unusual in nature and occur infrequently. Both characteristics must exist for an item to be classified as an extraordinary item on the income statement. Only rarely does an event or transaction clearly meet both criteria and thus give rise to an extraordinary gain or loss. If an event or transaction meets both tests, it is shown net of taxes in a separate section of the income statement usually just above net income.
Unusual Gains and Losses
10.Material gains and losses that are either unusual or occur infrequently, but not both, are excluded from the extraordinary item classification. These items are presented with the normal, recurring revenues, costs, and expenses. If material, these items are disclosed separately; if immaterial, they may be combined with other items in the income statement.
Changes in Accounting Principles
11.A change in accounting principle results when an entity adopts a new accounting principle that is different from the one previously used. A company recognizes a change in accounting principle by making a retrospective adjustment to the financial statements. Such an adjustment recasts the prior years’ statements on a basis consistent with the newly adopted principle. The company records the cumulative effect of the change for prior periods as an adjustment to beginning retained earnings of the earliest year presented.
Changes in Estimates
12.Accountants make extensive use of estimates in preparing financial statements. Adjustments that grow out of the use of estimates in accounting are used in the determination of income for the current period and future periods and are not charged or credited directly to Retained Earnings. It should be noted that changes in estimates are not considered errors (prior period adjustments) or extraordinary items.
Corrections of Errors
13.Companies must correct errors by making proper entries in the accounts and reporting corrections in the financial statements. Corrections of errors are treated as prior period adjustments, similar to changes in accounting principles. Companies record an error in the year in which it is discovered. They report the effect of the error as an adjustment to the beginning balance of retained earnings. If a company prepares comparative financial statements, it should restate the prior statements for the effects of the error.
Intraperiod Tax Allocation
14.Intraperiod tax allocation is the process of relating the income tax effect of an unusual item to that item when it appears on the income statement. Income tax expense related to continuing operations is shown on the income statement at its appropriately computed amount. All other items included in the determination of net income should be shown net of their related tax effect. The tax amount may be disclosed in the income statement or in a footnote.
Earnings per Share
15.In general, earnings per share represents the ratio of net income minus preferred dividends (income available to common shareholders) divided by the weighted average number of common shares outstanding. It is considered by many financial statement users to be the most significant statistic presented in the financial statements, and must be disclosed on the face of the income statement. Per share amounts for gain or loss on discontinued operations and gain or loss on extraordinary items must be disclosed on the face of the income statement or in the notes to the financial statements.
16.The statement of retained earnings serves to reconcile the balance of the retained earnings account from the beginning to the end of the year. The important information communicated by the statement of retained earnings includes: (a) prior period adjustments (income or loss related to corrections of errors in the financial statements of
a prior period net of tax), (b) changes in accounting principle, (c) the relationship of dividend distributions to net income for the period, and (d) any transfers to and from retained earnings.
17.Items that bypass the income statement are included under the concept of comprehensive income. Comprehensive income includes all changes in equity during
a period except those resulting from investments by owners and distributions to owners. Recently the FASB evaluated approaches to providing more information about other comprehensive income items. It decided that the components of other comprehensive income must be displayed in one of three ways: (1) a second separate income statement; (2) a combined income statement of comprehensive income, or (3) as part of the statement of stockholders’ equity.