ACA AC 12 - Company financial statements under IFRS Accounting Standards

What is included in cost of sales?

Purchases plus delivery inwards adjusted for opening and closing inventory, and any substantial losses of inventory; In a manufacturing company, wages of production staff and depreciation expenses of production non-current assets; and for a company that provides services, cost of sales mainly compromise the cost of staff time.

What in included in distribution costs?

Wages of marketing or distribution staff; sales commission; distribution expenses eg vehicle costs; depreciation of motor vehicles and other non-current assets used for distribution; and the cost of advertising and selling activities.

What is included in Administrative expenses?

Wages of administrative staff; deprecation of non-current assets, amortisation of intangible assets; impairment losses; irrecoverable debts expense; and expense of substantial loss of inventory

What are examples of other income?

Rent received from property that is rented to third parties; insurance claim proceeds; profits on disposal of non-current assets

What are examples of finance income?

Presented in statement of profit or loss.
Dividends received on investments and interest received on savings.

What are examples of finance costs?

Interest payable on bank loans and overdraft and interest on debt securities

What should be shown in the statement of changes in equity?

The total comprehensive income for the period (profit or loss for the period);
The amounts of transactions with owners, showing separately contribution by owners (eg issues of share capital) and distributing to owners (in the form of dividends);
and for each component of equity, a reconciliation between the carrying amount at the beginning and end of the period; showing separately each change.