FRS 3, Reporting financial performance, significantly supplements the financial information required under statutory formats.

Requirements

(a) Discuss the effect of the following disclosures on users’ understanding of the financial performance of a limited company:

(i) analysis of turnover down to operating profit between continuing operations, discontinued operations and acquisitions in the period;

(ii) statement of total recognised gains and losses; and

(iii) note of historical cost profits and losses. (13 marks)

(b) Discuss how disaggregated data required by the disclosures in SSAP 25, Segmental reporting, assist users to analyse and interpret published financial information.

(7 marks)

ICAEW, Financial Reporting, June 2001 (20 marks)