the information below is to assist you in identifying the correct data to source fro 3739513

The information below is to assist you in identifying the correct data to source from the annual reports of your allocated company. SALES REVENUE The sales revenue figure is to assist in calculating the gross profit from products sold. Hence DO NOT include the following in the sales revenue figure: • Research and Development tax incentives • Other revenue or Other income • Interest income The following SHOULD BE included in sales revenue: • Other “operating” revenue • Service fees and royalties COST OF SALES In most annual reports, the sales revenue, cost of sales and gross profit are provided. However, where that is not the case, examples of items to INCLUDE in the COS figure where they appear on the Profit or Loss statement, are: • Materials used • Finished goods used and changes in inventories of finished goods • Purchase of goods • Raw materials and consumables used • Employee and contractor costs directly on-charged (cost of sales on services) • Other cost of sales on services • Processing expenses • Outward freight • Fair value adjustment on biological assets Whether or not these items appear on the Profit or Loss statement (Income Statement), will depend on the industry in which your entity operates. For example, a fair value adjustment on biological assets may be found on the Profit or Loss statement of a company that operates within the fisheries industry, agriculture or aquaculture. GROSS PROFIT = Sales Revenue less COS EXPENSES

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