
Concept Introduction:
Income statement: The income statement shows details of net revenue, expenses and profit for the period. As per IFRS the expenses have to disclosed separately for income tax, finance costs and other costs
Financial Statements: There are three basic financial statements which are
Common Size Percent: This is a method of analysis of financial statements by comparing two or more financial statements of same company or different companies. All figures are shown as percentage of base value. In case of income statement each item of income statement is shown as percentage of sales value. In case of
The formula of calculation of common size percent is shown below
Trend Percent: This is method of analysis of financial statements by comparing two or more financial statements of same company or different companies. The base year figures are shown as 100% for all items. The comparative year figures are shown as percentage of base value. For example sales of base year will be shown as 100% and comparative years will be calculated as below
To Prepare:
Trend percent for Net Sales

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Chapter 17 Solutions
Fundamental Accounting Principles -Hardcover
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