PROFIT AND LOSS ACCOUNT FRA


A profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a given period of time.  The P&L statement shows a company’s ability to generate sales, manage expenses, and create profits. It is prepared based on accounting principles that include revenue recognition, matching, and accruals, which makes it different from the cash flow statement.

Structure of the Profit and Loss Statement

A company’s statement of profit and loss is portrayed over a period of time, typically a month, quarter, or fiscal year.
The main categories that can be found on the P&L include:

Example Profit and Loss Statement (P&L)

Below is an example of Amazon’s 2015 – 2017 P&L statement, which they call the Consolidated Statement of Operations. 


Example Profit and Loss Statement (P&L) from Amazon
Source: amazon.com

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