CERTYNEX IFRS ACADEMY

Tavira SA's annual statements present an "operating profit" subtotal between gross margin and finance result. For the half-year report, the preparer deletes this subtotal "to lighten the condensed statement" and goes directly from gross margin to profit before tax. What must Tavira SA do?

Keep the deletion, because a condensed statement is by nature exempt from presenting the subtotals of the annual statements, which belong to the detail.

Keep the deletion if the amount of the subtotal is below 5% of profit before tax, a threshold that management considers acceptable for a condensed statement.

Reinstate the "operating profit" subtotal: the condensed statement includes at least each heading and subtotal of the latest annual statements.

Reinstate the subtotal if management sees value in it for readers, the Standard leaving that choice to the entity according to the importance of the subtotal.