PELICAN Corporation is a retail clothing business that follows international financial reporting standards (IFRS) in the preparation of its financial statements. On December 31, 2014, an accounting clerk provided the following income statement. PELICAN CORPORATION Income Statement June 30, 2014 Sales $ 3,500,000 Interest income 10,000 Loss from discontinued operations 100,000 Cost of sales 1,950,000 Selling expenses 200,000 General and administrative expense (including $188,000 loss due to raccoons in the ceiling) 438,000 Depreciation expense 50,000 Interest expense 22,000 Income tax expense (30%) 285,000 Net income $ 525,000 Required: Note- this is a short answer question and financial statement preparation is NOT required • Clearly describe at least three recommendations PELICAN should follow in preparing the income statement according to GAAP. • Given your recommendations, identify at least two qualitative characteristics or fundamental principals and explain how they are enhanced b

Answer rating: 100% (QA)

1 Expenses should be shown separate from losses as this shows sustainability of ... View the full answer