On the next page is the income statement for a British company, Avon Rubber plc. Avon prepares its financial statements in accordance with IFRS.

Instructions(a) Review the Avon Rubber income statement and identify at least three differences between the IFRS income statement and an income statement of a U.S. company as presented in the chapter.(b) Identify any irregular items reported by Avon Rubber. Is the reporting of these irregular items in Avon??s income statement similar to reporting of these items in U.S. companies?? income statements?Explain.

Avon Rubber plc Consolidated Income Statement for the Year Ended 30 September 2009 2008 Continuing operations 54,606 Revenue 91,688 68,148 Cost of sales 44,476 Gross profit 23,540 4,676 16,881 120 10,130 Distribution costs 3,445 20,496 1,225 Administrative expenses Other operating income 12,586 Operating profit/loss) from continuing operations 2,103 Operating profit/loss) is analysed as: Before depreciation, amortization and exceptional Items 8,595 3,957 686 Depreciation and amortization 3,419 4,105 8,481 Operating profit/loss) before exceptional items Exceptional operating items 4,638 2,535 33 1,539 394 Finance income 27 Finance costs 1,015 Other finance income 1,183 (12,391) 1,259 Profit/(loss) before taxation 991 Taxation 1,699 Profit/loss) for the year from continuing operations (708) (11,132) Discontinued operations Profit/loss) for the year from discontinued operations 566 (8,337) Loss for the year (142) (19,469) Earnings/(loss) per share Basic (0.6)p (0.6)p (68.4)p (68.4)p Diluted Earnings/(loss) per share from continuing operations Basic (2.6)p (2.6)p (39.1)p (39.1)p Diluted