The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available at www.zetarplc.com.

Instructions

(a) Is Zetar using a multiple-step or a single-step income statement format? Explain how you made your determination.

(b) Instead of “interest expense,” what label does Zetar use for interest costs that it incurs?

(c) What is the approximate tax rate of Zetar’s “Tax on profit from continuing activities”?

(d) Using the notes to the company’s financial statements, explain what each of the following are:

(1) Adjusted results.

(2) One-off items.