When producing the consolidated statement of profit or loss and other comprehensive income, which TWO of the following will be disclosed as…

International Financial Reporting Standard 10 (IFRS 10) and International Accounting Standard 1 (IAS 1) mandate the presentation format for consolidated financial statements. These standards require that the total performance of the group be allocated between the owners of the parent and the non-controlling interests (NCI). Specifically, the consolidated statement of profit or loss and other comprehensive income must disclose the attribution of both the 'profit for the period' (which is profit after tax) and the 'total comprehensive income for the period'. This ensures that users of the financial statements can clearly see the portion of the group's performance that belongs to each ownership group.

A. Profit before tax: Attribution is required on profit after tax, as tax is an expense that must be accounted for before determining the final distributable profit.

C. Other comprehensive income: While the components of OCI are allocated, the primary disclosure of attribution on the face of the statement is for total profit and total comprehensive income.

E. Operating profit: This is an intermediate subtotal. Attribution is performed on the final profit figure for the period, not on intermediate performance measures.

1. International Accounting Standards Board (IASB). (2011). International Financial Reporting Standard 10: Consolidated Financial Statements. Appendix B

Paragraph B94. This paragraph states

"An entity shall present profit or loss and total comprehensive income for the period attributable to owners of the parent and to non-controlling interests."

2. International Accounting Standards Board (IASB). (2007). International Accounting Standard 1: Presentation of Financial Statements. Paragraph 81A. This paragraph requires an entity to present

as allocations of profit or loss and other comprehensive income

"(a) profit or loss for the period attributable to non-controlling interests and owners of the parent; and (b) total comprehensive income for the period attributable to non-controlling interests and owners of the parent."

3. Weygandt

J. J.

Kimmel

P. D.

& Kieso

D. E. (2021). Financial Accounting: IFRS (4th ed.). Wiley. Chapter 12

"Investments

" in the section on consolidated financial statements

illustrates that the net income and comprehensive income are allocated to controlling and non-controlling interests on the consolidated income statement.