Income statement layouts

wonderwife2008 Registered Posts: 41 💫 🐯 💫
I am currently working on an assignment for IAS and have a couple of quick questions about the layout of the income statement I looked through the tutorial textbook (David Cox) but can't seem to find an answer to my questions!!!

At work we classify discounts allowed as an "other direct cost" and show it separately in the profit & loss account. Does this follow in the income statement layout required by AAT i.e.

Opening Stock
plus purchases plus carriage inwards less discounts taken
plus discounts allowed

less closing inventories

equals cost of sales

Also I am unsure about how to seperate the overheads. The tutorial book seems to imply that they should be split between distribution costs and admin expenses which would leave all of the assignment overheads pooled into admin expenses. At work we would seperate these into employee costs, premises costs, general admin, other costs. Should the expenses be detailed seperately i.e ..

Directors Renumeration
Heating & Lighting
Other Expenses
Increase in provision for doubtful receivables

I'd appreciate your help with this as these layout issues are holding me back. I find working with one set of specifications during the day and studying a different set at night very confusing! I think it may be the book confusing me!

Cheers Claire
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