What you’ll learn4 learning objectivesChoose one objective for a focused lesson, or study the complete topic.10.1.1Statement of profit or loss• Statement of profit or loss- the meaning and purpose of the statement of profit or loss- the contents of a statement of profit or loss: revenue, cost of sales, gross profit, expenses, profit from operations (operating profit), taxation, profit for the year, dividends, retained earnings- amendment of a statement of profit or loss- the impact on the statement of profit or loss of a given changeSyllabus objective10.1.2Statement of financial position• Statement of financial position- the meaning and purpose of statement of financial position- the contents of a statement of financial position including non-current assets, current assets, current liabilities, net current assets, net assets, non-current liabilities, reserves and equity- amendment of a statement of financial position- the relationships between items in the statement of profit or loss and the statement of financial positionSyllabus objective10.1.3Inventory valuation• Inventory valuation- the difficulties of valuing inventory- the net realisable value methodSyllabus objective10.1.4Depreciation• Depreciation- the role of depreciation in the accounts- the impact of depreciation (straight-line method only) on the statement of financial position and the statement of profit or lossSyllabus objective