Question

The accounting records of Food Complex Ltd, a publicly listed company, showed the amounts below for the year ended 31 January, 20X7, in millions of Canadian dollars. The company had 40 million common shares outstanding throughout the fiscal year.

Prepare two different versions of the SCI as follows

1. By nature of income and expense

2. By function.

Dr(Cr)	Retail	Wholesales	Dairy	Bakery	U.S	Total
Sales Revenue	$(390)	$(251	$(45)	$(65)	$(67)	$(818)
Cost of inventory expensed	160	134	12	18	-	324
Employee cost	43	28	17	15	22	125
Other openings expense	16	14	8	13	27	78
Restructuring cost	5					5
Gain on sale of marketable securities						(8)
Interest expense						12
Depreciation expense						96
General advertising expense						21
General corporation administrative expense						33
Loss on discontinued operation	(21)					(21)
Loss on translation of U.S. subsidiary(OCI)						6
Income tax expense (including $ 5 tax recovery discontinued operation						20

Answer 1

STATEMENT OF INCOME BY NATURE OF EXPENSE
PARTICULARS	AMOUNT	AMOUNT
SALES		$1,236.00
Expenses and losses
Cost of inventory expensed	$445.00
Employee Cost	$202.00
Other operating expneses	$144.00
Restructuring cost	$5.00
Interest Expenses	$23.00
Dpereciation expenses	$107.00
General Advertising Exenses	$32.00
General Corporation Administative Expneses	$44.00
Loss on transalation of US subsidiary	$6.00	$1,008.00
		$228.00
Add Other Comprehensive Income
Income from Discontinued operations		$32.00
		$260.00
Less Income Tax Expense		$31.00
Earnings for shares holder		$229.00
			Total Earnings		229
Earning per share			Discontinued operations	32
Continuing Operations		$3.37	Less Income Tax	5	27
Discontinued Operations		$0.45	Earning from
Earning per share total		$3.82	continued ope		202
			Number of shares		60
STATEMENT OF INCOME BY FUNCTIONS OF EXPENSE
PARTICULARS	AMOUNT	AMOUNT
SALES		$1,236.00
Less Cost of Goods sold		$445.00
Gross Profit		$791.00
Operating Expenses				Working Note 1
Administrative Expenses	$520.00			Administrative Expenses
Selling Expenses	$32.00			Employee Cost			$202.00
Total Operating Expenses		$552.00		Other operating expneses			$144.00
Operating Income		$239.00		General Corporation Administative Expneses			$44.00
Other Incomes/Expenses				Interest Expenses			$23.00
Income From discontinued Operations	$32.00			Dpereciation expenses			$107.00
Less Expenses							$520.00
Restructuring cost	$5.00
Loss on transalation of US subsidiary	$6.00	$21.00
Total Income		$260.00		Selling Expenses
Less Income Tax Expense		$31.00		General Adverstising Expenses			$32.00
Earnings for shares holder		$229.00	Working Note 2
			Total Earnings		229
Earning per share			Discontinued operations	32
Continuing Operations		$3.37	Less Income Tax	5	27
Discontinued Operations		$0.45	Earning from
Earning per share total		$3.82	continued ope		202
			Number of shares		60