Finland-based UPM products include pulp, paper, plywood, sawn timber, labels and composites, bio energy, bio fuels for transport, bio chemicals and nano products. The company is the world€™s leading producer of graphic papers and second-largest producer of self adhesive label materials.
Listed below in alphabetical order are items and amounts taken from the consolidated income statement for the accounting year ending on 31 December 2011 (source: Annual report 2011). All numbers are in millions of euros. The consolidated financial statements of UPM are prepared in accordance with IFRS as adopted by the European Union and IFRIC Interpretations.

Required
1 Given the terminology used, was the original income statement organized by nature or by function?
2 Prepare the income statement in a multiple-step format (check figure: bottom line ¼ 457).

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Change in fair value of biological assets and wood 64 Operating proft 459 86 0 harvested Otharoperating income Costs andexpenses Depreciation, amortization and impaiment -9013 Profit for the perod attributable to: Non-controling -828terests charges Profit for the perod attributabe to: Owners of the 457 Exchange rate and fair vlue gains and -33 parent company Profit (loss) betore tax 417 457 10,068 82 osses Gains on available-for sale investments, net Income taxes Interest and other finance costs, net 71 Profit (loss) for the perod 40 Sales -80 Shareof resuits of assoclated companies and jont entures N.B. Share of resuts of associated oompanies and pint ventures represnt the share in companies where the group ony exerts a significant infuenoe (ownership between 20 percent and 50 peroent of share capital) or where the goup has a jant control. This item is covered in more detaits in Chapter 13.