Statement of Comprehensive Income

• what is a statement of comprehensive income?

  summarises a companys revenue and costs over the period of time to show whether the business has made a profit or loss
• what is sales revenue?

  the total amount of money coming into the business from the sales of a good or service
• what is cost of sales?

  costs directly linked to output
• what are expenses?


  all other costs, not directly linked to output
• what is finance income/costs?

  interest received on cash balances which have been added/ interest paid on borrowings which have been deducted
• what are exceptional items?


  unusually large or rare transactions
• what is corporation tax?

  tax on profit that generates a revenue for the government
• what is profit quality?

  a measure of whether profit is sustainable in the long run
• what is included in a statement of comprehensive income?

  • financial performance
  • cost structure
  • profit quality
  • profit utilisation
• advantages of statement of comprehensive income?

  • gives details of a businesses revenue
  • indicates growth
  • helps to asses profitability
  • provides details about costs and how managers have controlled them
• disadvantages of a statement of comprehensive income?

  • cannot be used on its own
  • analysis should be over a number of years and competitiors