Prepare financial reports to meet statutory requirements.
1. When reviewing the financial statements and supporting notes of a reporting entity, is it possible to find out about all the individual types of expenses and income that the entity has incurred or received? If not, how does management determine which expenses and income should be disclosed?
2. Does the statement of comprehensive income provide a reconciliation of opening and closing retained earnings? If not, where can such a reconciliation be found?
3. When is it permissible for a reporting entity to treat expenses directly as a reduction to retained earnings, rather than including them as part of the period's profit or loss?