Which of the following statements about company financial statements is/are correct, according to International
accounting standards?
(1) A material profit or loss on the sale of part of the entity must appear in the income statement as an
extraordinary item.
(2) Dividends paid and proposed should be included in the income statement.
(3) The income statement must show separately any material profit or loss from operations discontinuing during
the year.
(4) The statement of changes in equity must not include unrealised gains or losses.
A 1, 2 and 3
B 2 and 4
C 3 only
D 1 and 4.

C