Profit and loss account

Profit and loss account is one of the basic financial statements of a company, whose purpose is to present the revenues, costs and financial result (profit or loss) of the company over a specific reporting period, such as a financial year. The income statement provides information on the operational efficiency and profitability of a company, showing the sources of revenue and categories of costs. The statement is essential for assessing the financial health of an organisation and is a valuable source of information for management, investors, financial analysts and other stakeholders. The income statement is an integral part of a company's annual financial statements and should be prepared in accordance with applicable accounting standards and legislation. It includes, inter alia, items such as sales revenue, manufacturing costs, gross profit, operating expenses, operating profit, other expenses and income and net profit or net loss.