The French group Club Mditerrane is an active service provider in the leisure and hospitality field with, in particular, its rich network of all-inclusive resort €˜villages€™. The statements of income (prepared in accordance with IFRS) for the period 2009€“2011 follow (Source: Annual reports 2010 and 2011). E million

The 2008 annual report shows that the €˜Revenue €“ Villages€™ amounted to E1,484 millions.
Required
1. What is the format of the income statement? Justify your answer.
2. Prepare common-size statements on the basis of the income statement, as published by the company.
3. Restate the income statement and prepare common-size intermediate balances following the format of Figure 16.1. You could search for additional information in the annual reports of the company (www.clubmed-corporate.com/?lang=en).
4. Comment on these different statements from the point of view of a decision maker looking at the future.

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2009 2010 2011 million Revenue-Villages Other income Total income from ordinary activities 1,3441,3361,409 13 9 6 1,3521,341,41 (514)502)(545) (273)276(285) (280)(280(290) Outside services Employee benefits expense Taxes other than on income EBITDAR Villages Rent EBITDA Villages Depreciation and amortization expense Provision expense, net Operating income-Villages Operating income - Management ofassets Other operating income and expense Operating income Interest and related income (expense) on net debt Other financial income and expense Finance cost, net Income/(loss) before tax Income tax Share of incorme of associates Net income from continuing operations Results from discontinued operations Net income/(loss) 154) 100 (67) 144) 126 107 61 (24) (14) 13 (19) (15) (23) (43) (16) 10 (22) (43) (14) (53) (14)