International Finance and Accounting Handbook

25 • 18

Exhibit 25.12.

Income Statement.

LC COMPANY

Income Statement

Year Ended December 31, 20X0

Actual

Plan

Variance Analysis (PC)

LC

ER

PC

LC

ER

PC

Total

Volume

Price

Cost Rate

Expense

Currency

Revenue

1,140

0.9

1,026

1,000

1.0

1,000

26

200

(60)

(114)

_____

_____

_____

_____

____

Beginning inventory

(400)

1.0

(400)

(500)

1.0

(500)

100

Purchases

(480)

0.9

(432)

(500)

1.0

(500)

68

_____

_____

_____

_____

____

Total

(880)

(832)

(1,000)

(1,000)

168

Ending inventory

400

0.9

360

500

1.0

500

(140)

_____

_____

_____

_____

____

Cost of sales

(480)

(472)

(500)

(500)

28

(100)

120

8

_____

_____

_____

_____

____

____

___

____

____

Gross profit

660

554

500

500

54

100

(60)

120

(106)

Expense

(220)

0.9

(198)

(200)

1.0

(200)

2

(20)

22

Interest

(30)

0.9

(27)

(25)

1.0

(25)

(2)

(5)

3

Depreciation

(50)

1.0

(50)

(50)

1.0

(50)

0

_____

_____

_____

_____

____

____

___

____

___

____

Before-tax income

360

279

225

225

54

100

(60)

120

(25)

(81)

_____

_____

_____

_____

____

____

___

____

___

____

_____

_____

_____

_____

____

____

___

____

___

____

Notes:

The functional currency is the currency of the parent company:LC—local company currencyER—exchange ratePC—parent company currency.