Income statement

(IS).

Accounting.

The same as the statement of profit or loss' or 'profit and loss account', that sets out how the net profit for a period is arrived at.

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).

See also

• Accruals concept
• Balance sheet
• Cash flow statement
• Cashflow statement
• Expense
• Financial statements
• Income statement exposure
• Net profit
• Primary statements
• Profit and Loss account