Case 11-5Venus CellularVenus Cellular Limited (Venus) is the leading worldwide provider of a wide..

Case 11-5Venus CellularVenus Cellular Limited (Venus) is the leading, worldwide provider of a wide variety oftelecommunications equipment and services. Its telecommunications equipment andservices enable its customers to send or receive virtually any type of voice or datatransmission. Its customers include fixed line and wireless telecommunication operators,Internet service providers, governments, and businesses. Venus prepares its financialstatements in accordance with International Financial Reporting Standards (IFRSs).Consolidated Statement of Comprehensive Income20X120X0(US$ millions except per share data)RevenuesCost of salesGross profit16,419(10,629)5,79015,305(9,539)5,766Administrative and selling expensesResearch and development costsOperating income current(2,500)(1,804)1,486(2,430)(1,863)1,473Share-based payments (stock option plans)Restructuring costsImpairment of capitalized developmentGain on one time contractual settlementOperating income(86)(138)1611,423(75)(405)(130)863Interest expenseInterest incomeFinance costsIncome from sale of assets(273)153(120)1,858(283)131(152)244Income before tax and associatesIncome tax expenseShare in net income (losses) of associatesProfit or lossDividendsRetained profit or loss3,161(114)(18)3,029(265)2,764955(45)(76)834(247)587Other comprehensive income:Cash flow hedgesAvailable for sale financial assetsShare of other comprehensive income of associatesTotal comprehensive income for the year17(50)132,74420255637Copyright 2010 Deloitte Development LLCAll Rights Reserved.Page 2Case 11-5c: Venus CellularProfit or loss for the year attributable to:Owners of the parentNoncontrolling interests1,9511,078Basic earnings per share (in US$)Diluted earnings per share (in US$)3.763.765372971.491.49Required:Question 1 Identify whether the analysis of expenses in profit or loss ispresented by nature or function.Question 2 Identify the alternative performance (operating) measurespresented in the statement of comprehensive income and document yourconclusions with regard to the appropriateness of the various performancemeasures.Question 3 Discuss any additional issues you have identified or otherobservations.