IAS 1 recognizes the need for full disclosure of the components of reported net income. Explain why

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IAS 1 recognizes the need for full disclosure of the components of reported net income. Explain why full disclosure of net income components is important if investors are to properly interpret the implications of current reported net income for future firm performance. What is classification shifting? Why does classification shifting make it more difficult for investors to predict future firm performance from current reported net income? How could the problem of classification shifting be reduced?

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