Income Statement
Another name for the Profit & Loss Statement — a report of revenue, expenses, and profit over a period.
The income statement is functionally identical to a Profit & Loss (P&L) statement. The term "income statement" is more common in US GAAP contexts, while "P&L" or "statement of profit or loss" is preferred under IFRS.
Regardless of naming, the structure is the same: revenue at the top, cost of goods sold (producing gross profit), operating expenses (producing operating income), then non-operating items like interest and tax (producing net income).
Key subtotals that analysts focus on include gross profit (pricing power and cost efficiency), EBITDA (operating performance before capital structure effects), and net income (bottom-line profitability after all charges).
For companies reporting under IFRS, the income statement may also include a section for other comprehensive income (OCI) — items like foreign currency translation differences and unrealised investment gains that affect equity but aren't part of regular profit.
Related Terms
A financial report summarising revenue, costs, and profit over a specific period.
The percentage of revenue remaining after subtracting cost of goods sold — a measure of pricing power.
Earnings Before Interest, Taxes, Depreciation, and Amortization — a measure of operating profitability.
The percentage of revenue that becomes profit after all expenses, taxes, and interest are paid.
Further Reading
Not sure what financial reports your Malaysian business needs? This simple guide explains P&L, balance sheets, and cash flow statements in plain language.
A practical guide to the financial KPIs that give CFOs real-time visibility into business health across global operations.