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Copyright 2006 Pearson Education Canada Inc. 10-1
Copyright 2006 Pearson Education Canada Inc. 10-2
Outline
Statement of Income Single Step Format Multiple Step Format The Uniform System of Accounts for the
Lodging Industry (USAL) 9th Revised Edition Special Income Statement Items Comprehensive Income Illustrative Income Statement
Copyright 2006 Pearson Education Canada Inc. 10-3
STATEMENT OF INCOME
Reflects results of operations of a company for a period of time
It might include special items such as gain or loss on sale of property or extraordinary items
Copyright 2006 Pearson Education Canada Inc. 10-4
SINGLE STEP FORMAT
Arrives at net
income in one
step
Copyright 2006 Pearson Education Canada Inc. 10-5
MULTIPLE STEP FORMAT
Arrives at net income in many steps Provides additional information for
managerial purposes USAL is an example of a multiple step
income statement
Copyright 2006 Pearson Education Canada Inc. 10-6
The Uniform System of Accounts for the Lodging Industry (USAL)
OPERATED DEPARTMENTS
UNDISTRIBUTED OPERATING EXPENSES
FIXED CHARGES
Copyright 2006 Pearson Education Canada Inc. 10-7
OPERATED DEPTS
Revenue and expensesallocated to
revenue producingdepartments
USAL-9TH REVISED EDITION
Copyright 2006 Pearson Education Canada Inc. 10-8
USAL-9TH REVISED EDITION
UNDISTRIBUTEDOPERATINGEXPENSES
INCURRED FORTHE BENEFIT OF THE
OPERATION
Copyright 2006 Pearson Education Canada Inc. 10-9
USAL-9TH REVISED EDITION
NOT UNDER THE CONTROL OF
OPER MGT
RENT, INTDEP
PROP TAX
Copyright 2006 Pearson Education Canada Inc. 10-10
Special Income Statement ItemsExtraordinary ItemsGains and losses of an unusual and nonrecurring nature
Discontinued OperationsGains and losses from the disposal of a business
Cumulative effect of a change in accounting
principleThe effect of the change is reported in a separate section
of the income statement and disclosed in footnotes
Copyright 2006 Pearson Education Canada Inc. 10-11
Comprehensive Income
Change in equity from transactions and other events resulting from non-owner sources
One Statement Approach
The Two-Statement Approach
The Statement of Changes in Equity Approach
Copyright 2006 Pearson Education Canada Inc. 10-12
Illustrative Income Statement
Revenue 2007 2006 2005 Rooms $1,700 $1,500 $1,400 Food and Beverage 980 800 700 Other 400 450 430 $2,080 $2,750 $2,530
Expenses Rooms $500 $480 $460 Food and Beverage 700 650 600 Other Expenses 500 700 650 1,700 1,830 1,710Income before Income Taxes and Extraordinary item 380 920 820Provision for Income Taxes 100 280 250100 280 250Income before Extraordinary Item 280 640 570 Extraordinary Loss (20) Net Income $260 $640 $570
