The advantage of this is that when it comes to preparing annual financial statements, you could report by division at a summary level, as opposed to line by line (which is what IR wants). This style of reporting is what is often required for not for profits or large sporting organisations such as Rugby and Cricket.
eg
Income
- income category 1
- income category 2
- income category 3
Total Income
Less Expenses
- expenses category 1
- expenses category 2
- expenses category 3
Total Expenses
Justine Kennard
supported this idea
·
The advantage of this is that when it comes to preparing annual financial statements, you could report by division at a summary level, as opposed to line by line (which is what IR wants). This style of reporting is what is often required for not for profits or large sporting organisations such as Rugby and Cricket.
eg
Income
- income category 1
- income category 2
- income category 3
Total Income
Less Expenses
- expenses category 1
- expenses category 2
- expenses category 3
Total Expenses
Net Surplus/(Deficit)