Statement Of Comprehensive Income Profit And Loss Account

The purpose of the statement of profit or loss and other comprehensive income oci is to show an entity s financial performance in a way that is useful to a wide range of users so that they may attempt to assess the future net cash inflows of an entity.

Statement of comprehensive income profit and loss account. Ias 1 presentation of financial statements defines profit or loss as the total of income less expenses excluding the components of other comprehensive income other comprehensive income oci is defined as comprising items of income and expense including reclassification. Two linked statements one displaying the items of income and expense recognised in the statement of profit or loss and the other statement beginning with profit or loss and displaying all the items included in other comprehensive income. The net income net income net income is a key line item not only in the income statement but in all three core financial statements. Income statement also known as profit loss account is a report of income expenses and the resulting profit or loss earned during an accounting period.

It may be noted that statement of comprehensive income is the latest title of indian version of profit and loss account. Profit and loss account or comprehensive income statement which is the best. A profit and loss statement p l or income statement income statement the income statement is one of a company s core financial statements that shows their profit and loss over a period of time. Example following is an illustrative example of an income statement prepared in accordance with the format prescribed by ias 1 presentation of financial statements.

Entities may present all items together in. During the year n the companies recorded only expenses with the staff amounting to 3 000 um. While it is arrived at through the income statement the net profit is also used in both the balance sheet and the cash flow statement. A single statement or.

181 each of the two entities is 1 000 um at the end of year n while its market value is 5 000 mu. The performance of a company is reported in the statement of profit or loss and other comprehensive income. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement. A statement of comprehensive income contains two main things.

Having discussed the concept of comprehensive income we shall make comparative analysis of indian profit and loss account with the international version of statement of comprehensive income.