Chapter 4, Problem 18E

Exercise 4-18 preparing an income statement under IFRS P4

L’Oreal report the following income statement accounts for the year ended December 31, 2014 (euros in millions). Prepare the income statement for this company for the year ended December 31, 2014, following usual IFRS practices.

Net profit …………….	$4,908.6	Income tax expense ……..	$ 1.111.0
Finance costs ………..	31.4	Profit before tax expense…..	6.019.6
Net sales ………………	22,532,0	Research and development expense ……………..	760,6
Gross profit …………….	16,031.3	Selling, general and administrative expense……	4,821.1
Other income …………..	2,118,0	Advertising and promotion expense ………………..	6,558.9
Cost of sales ……………	6,500.7	Finance income ………….	42.3