Apollo Ltd. reported the following information concerning its performance for the current year. Apollo is a
manufacturing firm and has reported that it was selling one of its many production divisions, Product X. Selected information:
• Net Income (before tax) from sales from Product X $20,000
• Revenue (from all other product divisions) $2,500,000 (before tax).
• Cost of Sales (from all other product divisions) $950,000 (before tax).
• Other expenses (from all other product divisions - before tax) $1,025,000
• Gain on sale of equipment (which produced product Y) $5,000 (before tax)
• Gain on sale of equipment that produced product X $3,000.
• Tax rate 30%
(i) Prepare the Income Statement as reflected in AASB 5 from the above information.
(ii) Why is it important for firms to report as required by AASB 5? (Refer to AASB5, paragraphs 31-33)
(i) Income statement according to AASB 5 states that the income earned from discontinued operation must be shown separately... View the full answer