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1. Which of the following about comprehensive income is correct?
   1. Profit or loss is equal to comprehensive income plus total other comprehensive income.
   2. Comprehensive income is equal to profit or loss plus total other comprehensive income.
   3. Total other comprehensive income is equal to comprehensive income plus profit or loss.
   4. Comprehensive income is equal to profit or loss plus total other comprehensive income plus extraordinary items.
2. The financial statements of Starnight Ltd (Starnight) showed a total equity balance of $2 500 000 for the reporting period ended 31 December 20X4. During the 20X5 financial year, Starnight recognised the following transactions:
   • Factory buildings were revalued from their carrying amount of $500 000 to $750 000;
   • A dividend of $50 000, which was declared in the previous financial year, was paid to shareholders on 31 March 20X5;
   • A dividend for the current financial year of $75 000 was declared on 15 December 20X5. The $75 000 is unpaid and has been recognised as a liability at the end of the reporting period;
   • The entity made a profit after-tax of $350 000.

What is the closing balance of the total equity for the year ended 31 December 20X5?

2. 1. $2 775 000
   2. $2 975 000
   3. $3 025 000
   4. $3 050 000
3. According to IAS 1 Presentation of Financial Statements, which of the following does not have to be presented as a line item in the statement of financial position? A1) Assets and liabilities for current tax.
   1. Non-controlling interests, presented within equity.
   2. Investments accounted for using the equity method.
   3. The number of shares authorised, issued and fully paid.

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