OCR Standardising its approach to accounts presentation?

A key issue facing businesses teachers is how to introduce students to various types of profit e.g. gross, net, operating, before tax and retained. Until now, I’ve focused on gross net and retained. However, advice just issued by the OCR means a change of tack, from September 2012.

The just published OCR Guidance on Accounting Elements is essential reading for OCR centres. It clarifies how profit and loss accounts (now termed statements of competence of income or income statements), and balance sheets (or statements of financial position) are now laid out.

The document also contains OCR advice on ratios, with a commentary on interpretation particularly helpful.