Presented below is a combined income and retained earnings statement for Sapporo Ltd. for 2022 (amounts in thousands).
Additional facts are as follows.
1. “Selling, general, and administrative expenses” for 2022 included a charge of ¥8,500,000 for impairment of intangibles.
2. “Other, net” for 2022 was a loss on sale of equipment of ¥17,000,000.
3. “Adjustment required for correction of an error” was a result of a change in estimate (useful life of certain assets reduced to 8 years and a catch-up adjustment made).
4. Sapporo Company disclosed earnings per share for net income in the notes to the financial statements.
Instructions
Determine from these additional facts whether the presentation of the facts in the Sapporo Ltd. income and retained earnings statement is appropriate. If the presentation is not appropriate, describe the appropriate presentation and discuss its theoretical rationale. Do not prepare a revised statement.
