1- Does the company use the single-step or multiple-step or a variation for income statement presentation?
2- How does the company classify its operating expenses in its income statement?
3 Does the income statement (or related disclosure note) contain any separately reported items in any year presented? If it does, describe the event that caused them.
4 What was the percentage increase or decrease in the company’s net income for financial year 2010/2011 to 2009/2010?
5- Using 2010/2011 data, what is the company’s approximate income tax rate?
270.2/1419 = 19.04%
7- Has the company made any changes in its revenue recognition method?
8- Does the income statement contain any separately reported items?
9- What “other comprehensive income” did the company report in 2010/2011?
11- Explain the term “treasury shares” and how should it be classified?
13- Why are inventories shown as a current asset?
14- Explain the liability “deferred revenue”
15- What purpose do the disclosure notes serve?
16- What does “goodwill” mean and how is it accounted for?
17- What intangible assets does the company have?
19- What does impairment mean? Did the company disclose any impairment in
18- What major types of PPE does the company have?
20- What method does the company use to depreciate its property, plant and equipment?
21- Determine if the company reported any subsequent events in the disclosure note
22- How does the company classify interest paid, interest received, dividends paid and dividends received in its statement of cash flows?
23- Compare cash flows from operating, investing, and financing activities with those in the 2009/2010 report. Are there any discernible trends? How might they be interpreted?