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Provide a comparative analysis of the items shown in the other comprehensive income statement section for the two years i.e.2018 and 2019 financial reports of Caltex. If these items were included in the income statement / profit and loss statements of each year, how would the profit attributable to shareholders of the company be affected? Should other comprehensive income be included in evaluating the performance of managers of the company?

Consolidated Statement of Comprehensive Income FOR THE YEAR ENDED 31 DECEMBER 2018 Thousands of dollars 2018 2017 Profit for the period 561,590 620,752 Other comprehensive income Items that will not be reclassified to profit or loss: Actuarial gain/(loss) on defined benefit plans (2,793) 3,519 Tax on items that will not be reclassified to profit or loss 838 (1,056) Total items that will not be reclassified to profit or loss (1,955) 2,463 Items that may be reclassified subsequently to profit or loss: Foreign operations - foreign currency translation differences 52,618 (29,577) Net change in fair value of net investment hedges (6,612) 1,045 Effective portion of changes in fair value of cash flow hedges 10,442 (45,221) Net change in fair value of cash flow hedges reclassified to profit or loss (12,337) 45,294 Tax on items that may be reclassified subsequently to profit or loss 2,026 (2) Total items that may be reclassified subsequently to profit or loss 46,137 (28,461) Other comprehensive income for the period, net of income tax 44,182 (25,998) Total comprehensive income for the period 605,772 594,754 Attributable to: Equity holders of the parent entity 604,598 593,087 Non-controlling interest 1,174 1,667 Total comprehensive income for the period 605,772 594,754 The consolidated statement of comprehensive income is to be read in conjunction with the Notes to the financial statements. Consolidated Statement of Changes in Equity FOR THE YEAR ENDED 31 DECEMBER 2018 Foreign currency Issued Treasury translation Hedging capital stock reserve reserve Equity compen- sation reserve Non- controlling interest Retained earnings Thousands of dollars Total Total equity 15,620 (1,267) (22,306) 2,280,754 2,797,399 12,816 2,810,215 619,085 619,085 1,667 620,752 (28,532) 71 2,463 (25,998) (25,998) (28,532) 71 621,548 593,087 1,667 594,754 3,122 (7,418) (7.418) (9,674) 3,457 3,457 3,457 (292,107) (292,107) (1,000) (293, 107 (12,912) (1,196) (25,403) 2,610,195 3,094,418 13,483 3,107,901 (12,912) Balance at 1 January 2017 524,944 (344) Total comprehensive income for the year Profit for the year Total other comprehensive income Total comprehensive income for the year Own shares acquired, net of tax - (10,540) Shares vested to employees 9,674 Expense on equity settled transactions Dividends to shareholders Balance at 31 December 2017 524,944 (1,210) Balance at 1 January 2018 524,944 (1,210) Adjustment Restated balance at 1 January 2018 524,944 (1,210) Total comprehensive income for the year Profit for the year Total other comprehensive income Total comprehensive income for the year Own shares acquired net of tax (1,586) Shares vested to employees 334 Expense on equity settled transactions Dividends to shareholders Balance at 31 December 2018 524,944 (2.462) - Refer to Nate M for further information (1,196) (25,403) 2,610,195 3,094,418 (18,542) (18,542) 13,483 3, 107,901 (18,542) (12,912) (1,196) (25,403) 2,591,653 3,075,876 13,483 3,089,359 560,416 560,416 1,174 561,590 46,006 131 (1,955) 44,182 44,182 46,006 131 558,461 604,598 1,174 605,772 476 (1,110) (1,110) (334) 4,400 4,400 4,400 (307,757) (307,757) (1,600) (309,357) 33,094 (1,065) (20,861) 2,842,357 3,376,007 13,057 3,389,064 Consolidated Statement of Comprehensive Income FOR THE YEAR ENDED 31 DECEMBER 2019 Note 2018 2019 383,819 561,590 3,648 (1,094) 2,554 (2,793) B38 E2.2 (1.955) Thousands of dollars Profit for the period Other comprehensive Income Items that will not be reclassified to income statement: Actuarial gain/(loss) on defined benefit plans Tax on items that will not be reclassified to income statement Total items that will not be reclassified to income statement Items that may be reclassified subsequently to Income statement: Foreign operations - foreign currency translation differences Net change in fair value of net investment hedges Effective portion of changes in fair value of cash flow hedges Net change in fair value of cash flow hedges reclassified to income statement Tax on items that may be reclassified subsequently to income statement Total items that may be reclassified subsequently to income statement Other comprehensive Income for the period, net of Income tax Total comprehensive income for the period Attributable to: Equity holders of the parent entity Non-controlling interest Total comprehensive Income for the period 11,006 (1,200) 4,463 (10,541) 2,150 5,878 8,432 392,251 52,618 (6,612) 10,442 (12,337) 2,026 46,137 44,182 605,772 391,195 1,056 392,251 604,598 1,174 605,772 The Consolidated Statement of Comprehensive Income is to be read in conjunction with the notes to the financial statements Consolidated Statement of Changes in Equity FOR THE YEAR ENDED 31 DECEMBER 2010 Foreign Equity currency compen- Issued Treasury translation Hedging sation Retained capital stock reserve reserve reserve earnings Non- controlling interest Total Total equity Thousands of dollars Balance at 1 January 2019 Adjustment - Adoption of AASB 524,944 (2,462) 33,094 (1,065) (20,861) 2,842,357 3,376,007 13,057 3,389,064 16 (13,814) (13,814) (13,814) 33,094 (1,065) (20,861) 2,828,543 3,362,193 13,057 3,375,250 382,763 382,763 1,056 383,810 9,806 (3,928) 2,554 8,432 8,432 9,808 (3.928) 385,317 391,195 1,056 392,251 1,288 (3,005) (3,005) (4,787) 5,784 5,784 - (237,839) (260,167) - (239,000) (239,000) 5,784 (260,157) (600) (239,600) 42,900 (4,993) (18,576) 2,737,021 3,257,010 13,513 3,270,523 Restated balance at 1 January 2019 524,944 (2.462) Total comprehensive Income for the year Profit for the year Total other comprehensive income Total comprehensive income for the year Own shares acquired net of tax (4,293) Shares vested to employees 4,787 Expense on equity settled transactions Shares bought backor (22,318) Dividends to shareholders Balance at 31 December 2019 502,626 (1,968) Balance at 1 January 2018 524,944 (1,210) Adjustment- Adoption of AASB 15 Restated balance at 1 January 2018 524,944 (1,210) Total comprehensive Income for the year Profit for the year Total other comprehensive income Total comprehensive income for the year Own shares acquired net of tax (1,586) Shares vested to employees 334 Expense on equity settled transactions Dividends to shareholders Balance at 31 December 2018 524,944 (2.462) (12,912) (1,196) (25,403) 2,610,195 3,094,418 13,483 3,107,901 (18,542) (18,542) (18,542) (12,912) (1,196) (25,403) 2,591,653 3,075,876 13,483 3,089,359 560,416 560,416 1.174 561,590 46,006 131 (1955) 44,182 44,182 46,006 131 558,461 604,598 1,174 605,772 476 (1,110) (1.110) (334) 4,400 4,400 4,400 (307,757) (307,757) (1,600) (309,357) 33,094 (1,065) (20,861) 2,842,357 3,376,007 13,057 3,389,064 Refer to Nota inframt

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