CERTYNEX IFRS ACADEMY

Gamma SA, which already presents the minimum line items of the statement of profit or loss, wants to add a "Gross margin" line (revenue less cost of sales) because this subtotal helps users understand its performance (documented judgement, case fact). Does IAS 1 allow it?

No: the statement of profit or loss comprises the line items of the standard's minimum list and nothing more, with no addition at all.

No: a subtotal belongs to the notes and can never appear in the statement of profit or loss itself.

Yes, but gross margin must then replace the revenue line item in the statement rather than be added to it.

Yes: additional line items and subtotals are presented when relevant.