Income statement items (loss)
One of the basic financial statements that shows the financial performance of an accounting entity (reporting unit) during the financial period. Here are a number of relevant terms for users to familiarize themselves with.
net sales
The definition of net sales in the English Stock Exchange Regulations (No. 716, 1984) is as follows: the sums resulting from the sale of goods and services (which are related to the normal activities of the institution) after returnable tax and sales discounts, sales tax and any taxes and duties that are due on the sale.
Cost of Goods Sold-Cost of Sale
The cost incurred to make or provide the goods that are sold. This term is also called Cost of Goods Sold. To obtain the total cost of goods sold, the total cost of manufactured goods during a given period is added to the inventory at the beginning of the period and the inventory at the end of the period is subtracted from the sum.
Gross (loss) profit
The difference between net sales and cost of goods sold is called gross profit (loss).
Sales, administrative and general expenses
– Cost of living sales
To the costs that are directly and completely related to the sale of goods. These costs are considered part of the company’s operating costs and are used in the calculation of the company’s net profit.
– Administrative costs
The costs that are necessary for the management of an organization and support the activities of the organization’s employees.
– general expenses
That group of expenses of an organization that cannot be easily put in a category of expenses.
Operating (losses) Profit
In accounting, operating profit (loss), profit (loss) before interest and taxes (Earnings before Interest and taxes) or abbreviated EBIT is also called, which is a measure of the company’s profit that excludes interest and tax expenses. Operating profit is the result of subtracting operating income from operating expenses. Sometimes for a company with zero non-operating income, operating income is used synonymously with earnings before interest and taxes (EBIT) and operating profit.
financial expenses
Financial costs are basically the cost of debt financing (Cost of Debt Capital). According to Iranian Accounting Standard No. 13, guaranteed interest, fees and late penalties for short-term and long-term financial facilities are considered as financing expenses.
Earnings before taxes
Earnings (loss) before taxes (EBT), also called profit (loss) from continuing operations before taxes, is a measure of a company’s profit that excludes tax expense.
Tax Effect
The tax cost of the company’s performance is usually considered as one of the important costs of the company. Therefore, calculate its amount and it is the last item that appears in the profit and loss statement of the period before the special profit. In other words, by including the performance tax in the profit (loss) before tax, the net profit of the company is obtained.
net profit
Net profit refers to the income or profit of an entity during an accounting period, in which all operating and non-operating costs and revenues, as well as the effect of corporate income tax, are included.
Profit Distributable
The meaning of allocable profit is the profit that is obtained after taking into account the net profit (loss) of the period, the accumulated effects of previous years’ profits and annual adjustments.