Income statement: Difference between revisions

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''Accounting''.  
''Accounting''.  


International Accounting Standards (IAS) and US term for the UK Profit and loss account, that sets out how the net profit is arrived at.   
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.   
 
One of the IAS Primary statements.





Revision as of 11:22, 18 August 2016

(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