do you think such items could have a volatile impact on the bottom line over years w 621502

You have gone through the following information about Hindustan Lever Ltd., as provided in this chapter, for the year ended 31 December 2001:

1. Profit and Loss Account
2. Note 2: Other Income
3. Note 13: Exceptional Items
4. Note 15 (ii)

Now attempt the following requirements.

1. Measure the impact of Other Income on PBT. Is it material? Why or why not?
2. Measure the impact of Net Exceptional Income on PAT. Is it material? Why or why not?
3. But for Exceptional Expenses, how would the impact of Exceptional Income on PAT have differed?
4. Discuss each item of Other Income and Exceptional Income and Expenses with your colleagues for a thorough understanding. Seek the help of your professor where needed.
5. The company did not report any exceptional items during 2000. Do you think such items could have a volatile impact on the bottom line over years? Why or why not?
6. Finally, do such detailed disclosures of Other Income and Exceptional Items improve the quality of reporting, and therefore help in proper assessment of profitability and future outlook? Explain.
7. Draft a crisp two-page report.