Restatement of historical cost income statement
An entity would restate its revenue for the period ending 31 December 2013, when the general price index was 2,880, as shown in the table below. A similar calculation can be made for other items in statements of comprehensive income (and income statements if presented). Inevitably, in practice there is some approximation because of the assumptions that the entity is required to make, for example:
(a) the use of weighted averages rather than more detailed calculations; and
(b) assumptions as to the timing of the underlying transactions (e.g. the calculation above assumes the revenues for the month are earned on the final day of the month, which is not realistic).