The minimum line items and subtotals of the statement of profit or loss

Learning objectives

• Identify the minimum line items of the statement of profit or loss.L1
• Explain when to present additional line items and subtotals.L1, L2

Normative references

• IAS 1 §82In addition to items required by other Standards, the profit or loss section or the statement of profit or loss includes in particular: revenue (with interest revenue calculated using the effective interest method and insurance revenue presented separately), gains and losses arising from the derecognition of financial assets measured at amortised cost, finance costs, impairment losses determined in accordance with Section 5.5 of IFRS 9, the share of the profit or loss of associates and joint ventures accounted for using the equity method, certain effects of reclassifying financial assets, tax expense and a single amount for discontinued operations; additional line items and subtotals are dealt with in para. 85.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

3 questions

• Which of the following items is among the minimum line items of the statement of profit or loss under IAS 1?L1
• Which statements about the minimum line items of the statement of profit or loss are correct? More than one answer is possible.L1
• 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?L2