Income statement: Difference between revisions
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imported>Doug Williamson (Layout.) |
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''Accounting'' | ''Accounting''. | ||
(IS). | (IS). | ||
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* [[Accruals concept]] | * [[Accruals concept]] | ||
* [[Balance sheet]] | * [[Balance sheet]] | ||
* [[Cashflow statement]] | * [[Cashflow statement]] | ||
* [[Expense]] | * [[Expense]] | ||
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* [[Primary statements]] | * [[Primary statements]] | ||
* [[Profit and Loss account]] | * [[Profit and Loss account]] | ||
* [[Statement of changes in equity]] | |||
* [[Statement of profit or loss and other comprehensive income]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Revision as of 22:17, 8 August 2020
Accounting.
(IS).
A statement that sets out how the net profit or loss for a period is arrived at.
Also known as the statement of profit or loss or profit and loss account.
Under the 'double entry' accounting convention, income items in the Income statement are Credits (CR) and expenses are Debits (DR).
A net profit for the period under review is a Credit in the Income statement.
A net loss for the period is a Debit in the Income statement.
Net profits or losses for the period - in the Income statement - feed through in turn to the Shareholders' funds (cumulative retained profits or losses) in the 'bottom half' of the Balance sheet (as at the end of the period).
