Difference between profit and loss and comprehensive profit and loss statement;
– Profit and loss
A report that shows the results of the activities of a profit-making unit during the accounting period is called a profit and loss statement. The purpose of preparing this report is to present all the incomes and expenses identified during the financial period and the main focus of those incomes and operational expenses.
– Comprehensive profit
A report that shows all the changes (increase or decrease) in equity due to various identified incomes and expenses, both researched and unresearched, during the financial period.
Since the comprehensive profit and loss statement includes all recognized incomes and expenses, both realized and unrealized, the net profit and loss of the financial period is reflected as the first item of the comprehensive profit and loss statement. In this way, the income statement of the period shows one of the items of the comprehensive income statement (that is, the realized incomes and expenses) in detail, and the other recognized incomes and expenses (that is, the unrealized incomes and expenses) are shown separately in the income statement. It reflects comprehensively.
An example of other recognized unrealized incomes and expenses that are caused by changes in the value of assets and liabilities that are basically “maintained in order to enable the business unit to carry out operations in a continuous manner and according to the relevant accounting standards are directly referred to equity” is as follows:
1. Revaluation of tangible fixed assets
2. Revaluation of investments that are classified as non-current assets
3. Currency exchange
Note: The purpose of comprehensive profit reporting is to report the overall performance of the business unit.
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
The group of accountants and auditors of Tabriz
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ