identify any irregular items reported by avon rubber is the reporting of these irreg 644382
Avon Rubber plc
Consolidated Income Statement for the Year Ended 30 September
2009 |
2008 |
|
Continuing operations |
||
Revenue |
91,688 |
54,606 |
Cost of sales |
68,148 |
44,476 |
Gross profit |
23,540 |
10,130 |
Distribution costs |
4,676 |
3,445 |
Administrative expenses |
16,881 |
20,496 |
Other operating income |
120 |
1,225 |
Operating profit/(loss) from continuing operations |
2,103 |
12,586 |
Operating profit/(loss) is analysed as: |
||
Before depreciation, amortization and exceptional |
8,595 |
686 |
Depreciation and amortization |
3,957 |
3,419 |
Operating profit/(loss) before exceptional items |
4,638 |
4,105 |
Exceptional operating items |
2,535 |
8,481 |
Finance income |
33 |
27 |
Finance costs |
1,539 |
1,015 |
Other finance income |
394 |
1,183 |
Profit/(loss) before taxation |
991 |
12,391 |
Taxation |
1,699 |
1,259 |
Profit/(loss) for the year from continuing operations |
708 |
11,132 |
Discontinued operations |
||
Profit/(loss) for the year from discontinued operations |
566 |
8,337 |
Loss for the year |
142 |
19,469 |
Earnings/(loss) per share |
||
Basic |
(0.6)p |
(68.4)p |
Diluted |
(0.6)p |
(68.4)p |
Earnings/(loss) per share from continuing operations |
||
Basic |
(2.6)p |
(39.1)p |
Diluted |
(2.6)p |
(39.1)p |
Instructions
(a) Review the Avon Rubber income statement and identify at least three differences between the IFRS income statement and an income statement of a U.S. company as presented in the chapter.
(b) Identify any irregular items reported by Avon Rubber. Is the reporting of these irregular items in Avon’s income statement similar to reporting of these items in U.S. companies’ income statements? Explain.