When Preparing and Presenting a Consolidated Statement of Comprehensive Income

question 11

Multiple Choice

When preparing and presenting a consolidated statement of comprehensive income the NCI is:

• A) presented as a separate component of revenue
• B) shown as a separate component of profit before tax and a separate component of tax expense
• C) shown as a separate component of each line item
• D) presented as a separate portion of profit or loss.

---

Definitions:

Erosion Costs

Erosion Costs are the costs incurred due to the negative impact of introducing a new product or project on the sales and revenue of existing products or projects.

Incremental Income

The additional income generated from a particular business decision or action.

Fixed Assets

Assets of a long-term nature such as land, buildings, and machinery, which are used in the operations of a business and not expected to be consumed or converted into cash in the short term.

Net Working Capital

The distinction between what a business owns in the short term (current assets) and what it owes in the short term (current liabilities), reflecting the company's financial health and operational effectiveness.