Answer
a.
First, Avon Rubber plc's income statement focuses on continuing operations exclusively. There is a heading "continuing operations" before revenue. Comparatively, the income statements of corporations such as Coca-Cola do not include such a subheading before revenues. Second, Avon Rubber has distribution costs and administrative expenses under the operational expenses. In contrast, companies such as Coca-Cola use the heading "selling, general and administrative expenses" to record such expenses. Third, Avon Rubber uses the heading "exceptional items" to depict irregular items, whereas companies such as Coca-Cola do not use such a subheading.
b.
The irregular items incorporated in Avon Rubber's income statements include finance-related income and finance-related costs. The reporting of these irregular items is not different to the reporting in the income statements of the American entities because, in both cases, the reporting comes after the operating income (in the case of Coca-Cola) and after Operating profit/loss (in the case of Avon Rubber plc).
Work Step by Step
a.
First, Avon Rubber plc's income statement focuses on continuing operations exclusively. There is a heading "continuing operations" before revenue. Comparatively, the income statements of corporations such as Coca-Cola do not include such a subheading before revenues. Second, Avon Rubber has distribution costs and administrative expenses under the operational expenses. In contrast, companies such as Coca-Cola use the heading "selling, general and administrative expenses" to record such expenses. Third, Avon Rubber uses the heading "exceptional items" to depict irregular items, whereas companies such as Coca-Cola do not use such a subheading.
b.
The irregular items incorporated in Avon Rubber's income statements include finance-related income and finance-related costs. The reporting of these irregular items is not different to the reporting in the income statements of the American entities because, in both cases, the reporting comes after the operating income (in the case of Coca-Cola) and after Operating profit/loss (in the case of Avon Rubber plc).
