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Glossary · Accounting & Audit

P&L Statement

Statement of Profit and Loss — a financial statement summarising revenues, expenses, and profit or loss for a period.

Also called the income statement, the P&L is one of the three core financial statements. It is prepared for a period (month, quarter, year) and reports revenue from operations, other income, cost of materials, employee benefit expense, finance cost, depreciation, and other expenses. The bottom line shows profit before tax (PBT), tax expense, and profit after tax (PAT). Listed companies must also report comprehensive income and EPS.

Examples

A company with ₹100 lakh revenue and ₹80 lakh expenses has a PBT of ₹20 lakh. After 25% tax, PAT is ₹15 lakh.

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