Question 1 - acrual accounting

a) Show the income statement and effects of Accrual Accounting for your group company and add some comments to this.

Please explain everything relevant regarding this question. I have showed the income statement below, you just have to add comments. I have uploaded a picture from the annual report. If i am missing something important from the annual report, that is needed to explain this, tell me what i missed, and i will upload it.

INCOME STATEMENT 2015/16 GROUP PARENT Note 2015/16 2014/15 2015/16 2014/15 Amounts in DKK '000 3,4 395,555 349,502 395,428 349,386 Revenue Value of work transferred to assets 985 2,685 985 2,685 Cost of sales 5 166,155 153,266 164,121 152,410 Other external expenses 7,8 -43,027 33,584 71,369 59,115 Staff costs 6,7 117,376 106,299 93,022 83,608 Depreciation, amortization and impairment 12,13 -4,217 6,746 -4,104 6,424 65,765 63,797 Operating profit/loss (EBIT) 52,292 50,514 Financial income 3,308 2,221 8,030 2,342 Financial expenses 593 1,557 960 2,016 52,956 70,867 68,480 Profit/loss before tax 50,840 Tax on profit/loss 10 -18,980 4,055 18,434 3,689 48,901 Profit/loss for the year 49,500 52,433 47,151 Proposed distribution af profit/loss Retained earnings 34,678 29,825 Proposed dividend 17,755 17,326 52,433 47,151 Earnings per share Earnings per share (DKK) 11 5.6 5.7 Earnings per share, diluted (DKK) 11 5.5 5.4 Distribution of profit/loss Shareholders of the parent 49,500 48,901 48,901 49,500