profit and loss statement essay

2012 Profit and Loss Statement Paper Before beginning, it should be noted that although this project is to be for a Profit and Loss (P&L) Statement, only an Income Statement is available at the Kudler Fine Foods website (Apollo Group, 2011). However, Income Statements and P&L Statements are, for all intents and purposes, the same thing. With that said, it cannot be determined conclusively by reading the Income Statement for Kudler Fine Foods if the report

of Financial Statements Income Statements Also referred to as a Profit and Loss (P&L) statement, income statements illustrate a company’s revenues and expense, operating and non-operating income and expense, which is generated and incurred within an accounting period. “The analysis of income can create a picture of the quality of operations in the composed profit and loss account period” (Jeletic, 2012, pg. 325). In addition, income statements also inform external users of net profits or losses from

Key pointers to balance sheet and profit and loss statements:  A balance sheet represents the financial affairs of the company and is also referred to as “Assets and Liabilities” statement and is always as on a particular date and not for a period.  A profit and loss account represents the summary of financial transactions during a particular period and depicts the profit or loss for the period along with income tax paid on the profit and how the profit has been allocated (appropriated).

Three ways in which inventory-related costs can affect an organization’s profit and loss statement from one year to the next are inventory errors, inventory carrying costs, and inadequate inventory levels leading to customer service costs. According to Weygandt (2005), inventory is vital in determining the results of operations for a particular period. Determining inventory quantities include taking physical inventories and determining the ownership of goods. Some ways that inventory errors occur

COMPREHENSIVE INCOME Question 1: Identify whether the analysis of expenses in profit or loss is presented by nature or function. In accordance with IFRS, presentation of financial information in the statement of profit or loss requires that expenses be classified based on either their nature or function within the operation. IAS 1.99 states that “an entity shall present an analysis of expenses recognized in profit or loss using a classification based on either their nature or their function within

The use and purpose of the Statement of Cash Flows
The cash flow statement identify the sources of cash flowing into the business and shows how they have been used over a period. Companies or users need to read this statement in conjunction with trading and profit and loss accounting and balance sheet and also in the context of the statement in the previous year. (Cox, 2004) This statement provides a useful tool for analysing management decisions and strategy. It can reveal such things as the amount

The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a

accounting standards that are relevant for the presentation and disclosure of the statement of profit or loss and other comprehensive income that is disclosed in the Mainfreight Annual Report, and also management judgement and estimates and issues that can arise when used to disclose items. Regulate External Financial Reporting Regulation of accounting information is designed to ensure that users of financial statements receive information that will allow them to make meaningful decisions regarding

accounting for income taxes is how to account for the current and future tax consequences of certain items. One item it advises on is the future recovery or settlement of the carrying amount of assets or liabilities that are recognized in an entity’s statement of financial position. The second main item the standard covers is transactions and other events of the current

The profit and loss account is one of the annual accounts and main financial statements. It contains figures on the amount of profit or loss the business made over a financial year. It will also contain information on how the profit or loss arose. It’s purpose is to show how profitable the business is (If revenue exceeds expenses) or how unprofitable it is (if expenses exceed revenue). For this reason they are particularly important for generally showing an overview of the business success level