Below The Line Items On Income Statement

In this sample income statement you can see that cogs is above the line of gross profit and operating expenses and taxes are below the line.

Below the line items on income statement. Below the line refers to line items in the income statement that do not directly impact a firm s reported profits a firm may classify certain expenditures as being capital expenditures thereby pushing them below the line by shifting them from the income statement to the balance sheet or an expense is charged against a reserve account rather than being charged directly to expense. Atl on the income statement is where profit or income separates from other expenses. Under gaap below the line items are those items listed on the income statement that are below income from continuing operations. Btl in accounting is an extraordinary income or expense that the company incurs.

Two categories of items are presented below the line. However it is an unofficial term. This term is used by people in the know who deal with above and below the line items and account for expenses regularly. For example administration expenses is one line item selling expenses is separate category and must be presented in the next line or different line.

Below the line refers to items in a profit and loss account profit and loss statement p l a profit and loss statement p l or income statement or statement of operations is a financial report that provides a summary of a that show no noticeable effect on a company s revenue sales revenue sales revenue is the income received by a company. They are the sales cost of goods sold cogs cost of sales and cost of services cos. Discontinued operations net income loss from business segments that have been or will be disposed of or sold including any gain loss on net assets of that segment in the current period. Same goes for finance cost which is yet another line item.

Items listed above the line tend to vary more in the short term than many of those below the line and so tend to get more managerial attention.