profit and loss statement

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Related to profit and loss statement: balance sheet, income statement, Cash flow statement
See: ledger
References in periodicals archive ?
Although reporting corporations might be inclined to meet the material profit and loss statement in the most expeditious manner possible (without giving a great deal of thought to the myriad judgments that are relevant in preparing such statements), these statements should be prepared and presented with the utmost care.
Particularly, an uncontrolled domestic corporation could not be required to furnish a segmented profit and loss statement if it had not already prepared such a statement.
One proposed requirement for particular concern involves the keeping of, or creating where not otherwise maintained, combined industry segmented profit and loss statements, referred to as "material profit and loss statements." The industry segments are based on product lines, products, or models.
The requirement for material profit and loss statements by industry segments clearly suggest that the IRS will emphasize the profit split method, at least as a check.
If there is a section 6001 regime, reporting corporations can forgo the protection of the safe harbor and, in such circumstances, would not be required to create records not otherwise produced in order to be able to furnish material profit and loss statements. This is because the regulations under section 6001 do not generally require the creation of specific records, and do not require the creation of material profit and loss statements.
The two exceptions with respect to which records must be created if not ordinarily maintained are (i) basic accounting records and (ii) records to produce "material profit and loss statements."
It is therefore not expected to recur and would distort the profit and loss statement if grouped with the figures that do result from normal trading.
It is almost certain that detailed notes will accompany a published profit and loss statement. They may well include further information in the following areas:
Consider the profit and loss statement in conjunction with the rest of the accounts
Some useful ratios may be obtained by comparing figures from the profit and loss statement with figures from the balance sheet and elsewhere.
In the case of a published profit and loss statement the main accounting policies will be stated in the notes.