AASB 101 - Presentation of Financial Statements - October 2006
Profit or Loss for the PeriodProfit or Loss for the Period
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Profit or Loss for the Period
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All items of income and expense recognised in a period shall be included in profit or loss unless an Australian Accounting Standard requires otherwise.
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Normally, all items of income and expense recognised in a period are included in profit or loss. This includes the effects of changes in accounting estimates. However, circumstances may exist when particular items may be excluded from profit or loss for the current period. AASB 108 deals with two such circumstances: the correction of errors and the effect of changes in accounting policies.
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Other Australian Accounting Standards deal with items that may meet the Framework definitions of income or expense but are usually excluded from profit or loss. Examples include revaluation reserves (see AASB 116), particular gains and losses arising on translating the financial statements of a foreign operation (see AASB 121) and gains or losses on remeasuring available-for-sale financial assets (see AASB 139).