INCOME STATEMENT ITEMS
This chapter looks at a series of standards that primarily impact items in the income statement. It starts with the revenue recognition standards, including customer loyalty schemes and onerous contracts and discusses the forthcoming revenue recognition joint standard. It also addresses agriculture, government grants and pensions, as well as stock options, inventories, income tax, interest and foreign exchange differences.
The actual presentation of the income statement or profit and loss account is to be found in Chapter 2. In this chapter we will look at the various standards that have an impact on the recognition and measurement of items that are reported in the income statement. Of course many things that affect the income statement will also affect the balance sheet and vice versa, so the split of subjects between this chapter and the next one on the balance sheet is to some extent subjective.