The introduction of FRS 3, Reporting Financial Performance, has resulted in a considerably expanded profit and loss account with related disclosures and a new primary statement. The standard is intended to be based on the 'all-inclusive' concept of income.

Requirements

(a) Discuss why FRS 3 was introduced and whether it has achieved its objectives.

(b) Describe how the standard has implemented the 'all-inclusive' concept of income.