DipIFR Syllabus C. Presentation and additional disclosures - IAS 1 Presentation of Financial Statements - Notes ^{1 / 6}

is defined as the total of income less expenses, excluding the components of other comprehensive income

comprising of items of income and expense (including reclassification adjustments) that are not recognised in profit or loss

IFRS currently requires

• the statement of P&L and OCI to be presented as either one statement, being a combined statement of P&L and OCI

• or two statements, being the statement of P&L and the statement of comprehensive income.

An entity has to show separately in OCI

• Those items which would be reclassified (recycled) to P&L and

• Those items which would never be reclassified (recycled) to P&L. 

  The related tax effects have to be allocated to these sections.

Reclassification adjustments

are amounts recycled to P&L in the current period which were recognised in OCI in the current or previous periods.

• An example of items recognised in OCI which may be reclassified to P&L are foreign currency gains on the disposal of a foreign operation and realised gains or losses on cash flow hedges

Those 20 items which may not be reclassified are changes in a revaluation surplus under IAS 16 Property, Plant and Equipment, and actuarial gains and losses on a defined benefit plan under IAS 19 Employee Benefits.