Chapter 5, Problem 5.4P

Statement of Net Income Presentation. IFRS. Cardinal Manufacturing, Ltd., an IFRS reporter, provided the following information from its current-year trial balance.

Cardinal Manufacturing, Ltd.

Trial Balance (Partial)

For the Current Year Ended

Account	Debit	Credit
Common Stock (no par)— Beginning Balance		$3,876,000
Retained Earnings—Beginning Balance		2,720,000
Accumulated Other Comprehensive Income—Beginning Balance Dividends	$58,500	85,675
Sales		2,500,000
Interest Income		4,500
Income from Share of Associates		75,000
Gain on Disposal of Plant Assets		100,500
Gem on Flood Damage—Before Tax		56,000
Unrealized Gain on Available-for-Sale Bonds		45,600
Cost of Goods Sold	900,000
Selling Expenses	20,000
Office Supplies Expense	123,500
Sales Salaries Expense	145,000
Advertising Expense	68,900
Office Salaries Expense	78,500
Systems Consulting Fees—General	44,550
Depreciation Expanse—General	130,000
Interest Expense	98,750
Loss on Asset Impairment	9,350
Loss on Discontinued Operations—Before Tax	140,000

Required

Prepare a statement of net income and additional disclosure that would meet IFRS presentation requirements indicate items IFRS requires to be reported on the income statement The tax rate is 40%.