IFRS4.5 The income statement for a British company, Avon Rubber plc, is presented as follows. Avon prepares its financial statements in accordance with IFRS.

A. Review the Avon Rubber income statement and identify at least three differences between the IFRS income statement and an income statement of a U.S. company as presented in the chapter.

B. Identify any irregular items reported by Avon Rubber. Is the reporting of these irregular items in Avon's income statement similar to reporting of these items in U.S. companies' income statements? Explain.

Prior Year 117,574 (89,256 28,318 (4,527) (14,536) 9,255 13,577 Avon Rubber plc Consolidated Income Statement (pounds in thousands) Current Year Continuing operations Revenue 107,600 Cost of sales (77,892) Gross profit 29,708 Distribution costs (4,832) Administrative expenses (13,740) Other operating income Operating profit/(loss) from continuing operations 11,136 Operating profit/(Loss) is analysed as: Before depreciation, amortization and exceptional 15,723 items Depreciation and amortization (4.587) Operating profit/(loss) before exceptional items 11,136 Exceptional operating items Finance income Finance costs (486) Other finance income (443) Profit/(loss) before taxation 10,212 Taxation (3,094) Profit/(loss) for the year from continuing operations 7,118 Earnings/(loss) per share Basic 25.2p Diluted 23-3P Earnings/(loss) per share from continuing operations Basic 25.2p Diluted 23-3P (4.322) 9,255 16 (985) (1,152) 7,134 (2,808) 4,326 15.2p 14.4p 15.2p 14.4P