Profit and Loss Report

The Profit and Loss Report is an income statement for the business for a specific reporting Accounting Period. By contrast, the Balance Sheet Report is for a specific point in time.

The report is the total of all Profit and Loss Accounts from the start to end of the Accounting Period and shows:

• Financial Revenue
• Financial Expenses
• Net Profit or Loss. This is the total of thee first two and indicates the overall profit or loss of the business within the Accounting Period.

This report is primarily used to determine the profitability of the business.

It summarises the operating and non-operating income and expenses and these can be directly compared with previous Accounting Periods.