The group China Communications Construction is based in the People€™s Republic of China and principally engaged in infrastructure construction, infrastructure design, dredging and manufacturing of port machinery and other businesses. We provide below:
€¢ The consolidated income statements for the financial years ended 31 December 2009, 2010 and 2011 (Source: Annual reports 2010 and 2011).
€¢ The common-size income statements for the same period.

The 2008 annual report indicates that revenue for that year was 178,889 RMB millions. The consolidated financial statements of the group have been prepared in accordance with IFRS. The income statement is presented by function. However, in the Notes to the financial statements, the group publishes a breakdown by nature of the expenses (cost of sales, distribution costs and administrative expenses) as well as some details on the €˜other expenses€™ (see below).

From the Notes, it appears that the €˜others gains, net€™ mainly reflect gains on sale of assets and that €˜other income€™ can be integrated in the gross operating profit.
Required
1. With the help of the Notes, restate the income statement and prepare the statement of intermediate balances, in value and in percentage of sales.
2. Analyze the income statement on the basis of the format by function
3. Analyze the income statement on the basis of the format by nature (statement of intermediate balances).
4. What are the comparative benefits of each analysis from the point of view of a decision maker?

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Consolidated income statements (as reported) for the years ended 31 December 2009, 2010, and 2011 12010 2009 2011 RMB million million Year ended December 31 2011 2010 RMB RMB million Revenue Cost of sales (see Note 31 below) Gross profit Other income Other gains-net Selling and marketing expenses (see Note 31 below) Administrative expenses (see Note 31 below) Other expenses (see Note 30 below) Operating profit Finance income Finance costs, net Share of profit of jointly controlled entities Share of profit of associates Profit before income tax Income tax expense Profit for the year 294,281| 272,734| 226,920| (249,487)| 23,247 | 1,824 466 (570) (10,199)| (1,015)| 13,753| 708 (2,496)| 100.0% 10009611000% (91.5%)| (90.4%) 9.6% 0.9% 0.1% (0.296) (4.396) (0.6%) 5.5% 0.3% (1.3%) 0.0% 0.0% 4.5% (1.0%) 3.5% (266,374)| (205.215)| 21,705 | 2,119| 299 | (491)| (9,679| (1,439| 12,524| (90.5%)| 9.5% | 0.6%| 0.2% | (0.2%)| (4.4%)| (0.2%)| 5.5%| 0.7%| (1.1%)| 0.0%| 0.0% 1 5.1 % | (1.0%)| | 27,907 | 1,877 637 (624) (12,933)| 8.5% | 0.7%| 0.2% | (0.2%)| (37%)| (0.4%)| 5.0%| 0.3% (0.996)| 0.0% 0.0% 4.4% | (0.9%)| 3.5%| (646)| 16,218 1,993 660 (3,355)| (2,973)| 551 481 10,314| (2,301 75 98 38 78 15,029 | (3,046)| 12,081| (2,552)| 11,983 9,529 | 8,004 | 4.1 % 20112010 2009 Note 30: Other expenses in RMB million) Depreciation and other costs relating to assets under operating lease Rental expenses Cost of sale of materials 198 262 240 838 357 1,435 152 296 349 Total other expenses Note 31: Expenses by nature (in RMB million) Raw materials and consumables used Subcontracting costs Employee benefits Rentals Business tax and other transaction taxes Fuel Depreciation of property, plant and equipment and investment propertes Transportation costs Cost of goods sold Research and development costs Travel Repair and maintenance expense Utilities 1,015 2011 2010 2009 102,081 99,051 89,906 83,23472,468 59,806 24,338 20,043 5,504 18,327 19,438 12,495 5,944 4,328 4,416 3,630 2,106 1,737 1,431 1,620 787 382 614 296 8,254 6,551 6,099 4,864 2,377 2,314 2,210 1,685 1,142 502 427 7,379 5,860 5,487 5,826 1,575 1,886 1,530 1,130 503 (404) Reversal of/provision for impairment of trade and other receivables Reversal of/provision for foreseeable losses on construction contracts Amortization of intangible assets Amortization of lease prepayments Write-down of inventories Auditors' remuneration Advertising Changes in inventories of finished goods and work-in-progress Other expenses Control from the Income statement 211 182 110 151 76 87 38 2,401 7,760 279,931260,256 215,379 14,784 15,479