Analyzing LVMH Groups Income Statement and Comprehensive Income Disclosures The comparative consolidated income statements and the comparative statements of comprehensive gains and losses for the years 2017, 2016, and 2015 for LVMH Group (Moet Hennessy Louis Vuitton) are presented in the chapter on pages 531 and 532, respectively (with amounts in millions of euros). LVMH Group prepared these statements using IFRS.

Required:

Use the information in these statements to address the following questions:

1. Does LVMH use a multiple-step or a singlestep format on its income statement? Explain.

2. What was the gross margin as a percentage of revenue for 2018? For 2017?

3. What was the operating profit margin as a percentage of revenue for 2018? For 2017?

4. What was the net profit margin (net profit, group share) as a percentage of revenue for 2018? For 2017?

5. What were the basic earnings per share and diluted earnings per share for 2018?

6. What do the profit margins computed in Requirements 2, 3, and 4 and the earnings per share figures in Requirement 5 reveal about LVMHs profit performance in 2018 versus 2017?

7. Which amount has a greater impact on the net profit, group share for 2017: income (loss) from investments in joint ventures and associates or minority interests?

8. Does LVMH report comprehensive income using a single continuous statement or consecutive statements?

9. What was the change in value of availablefor- sale financial assets that impacted comprehensive gains and losses for 2017? Of this amount, how much was recognized on the income statement in 2017?

10. In 2017, what amounts did LVMH recognize in comprehensive income for the change in the value of vineyard land before tax and after tax?