Display of income statements is specified by Accounting Principles for Business Enterprises.
Income statements are based on "all-inclusive" concepts, in which all gains and losses are included in the statements. General format of income statements is shown as follows:
Cost of goods sold
Selling and administrative expenses
Non-operating (financing) revenues
Non-operating (financing) expenses
--Pre-tax net income
Extraordinary gains and losses are generally defined as non-recurring gains and losses and prior-period adjustments. In Japan, retrospective restatement is not allowed in practice.
Extraordinary losses appear to show a rapid increase recently, which include various restructuring or impairment losses. In financial statement analysis, ordinary profit has been deemed as somewhat sustainable income. Entities tend to include more extraordinary losses to boost ordinary profits in future periods.
Discontinued operations are not segregated from continued operations.
Comprehensive income is not displayed elsewhere in financial statements. Changes in components of remeasurement adjustments (other comprehensive income) is displayed on a net or gross basis in statement of changes in net assets.
Currently (as of September 2007), accounting changes are under deliberation toward convergence with IASB standards. Retrospective restatements and prospective adjustments would be required, depending on characteristics of accounting changes.