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revised schedule vi statement of profit and loss


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revised schedule vi statement of profit and loss

  1. 1. Format of Statement of Profit and Loss 1
  2. 2. Definition A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year. These records provide information that shows the ability of a company to generate profit by increasing revenue and reducing costs. The P&L statement is also known as a "statement of profit and loss", an "income statement" or an "income and expense statement".
  3. 3. STATEMENT OF PROFIT & LOSS Particulars Note Figures as at the end of No. the current reporting period 1)Revenue from Operations 2)Other Income 3)Total Revenue ( 1 + 2) 4)Expenses Cost of Materials Consumed Purchases of Stock in Trade Changes in inventories Employee Benefit expense Finance Costs Depreciation and amortization expense Other expenses 5)Profit Before Exceptional and extraordinary items and tax(3-4) 6)Exceptional Items Figures as at the end of the previous reporting period
  4. 4. STATEMENT OF PROFIT & LOSS Particulars Note Figures as at the No. end of the current reporting period 7)Profit Before extraordinary items and tax(5-6) 8)Extraordinary Items 9)Profit Before Tax(7-8) 10)Tax Expense Current Tax Deferred Tax 11)Profit (loss) for the period from continuing operations(9-10) 12)Profit (loss) from discontinuing operations 13)Tax expense of discontinuing operations 14)Profit(loss) from discontinuing operations (after tax) 15)Profit (loss) for the period (11+14) 16)Earnings per equity share Basic Diluted Figures as at the end of the previous reporting period
  5. 5. 5
  6. 6. HYPERLINKS 6
  7. 7. REVENUE FROM OPERATIONS  Revenue from operations of a company other than a finance company • • • • Sale of products Sale of services Other operating revenues Less: Excise duty  Revenue • • from operations of a finance company Interest Other financial services Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable.
  8. 8. OTHER INCOME  Interest Income (other than a finance company)  i) Dividend from Subsidiary companies ii) Dividend  Net Gain/Loss on sale of investments.  Other non-operating income (net of expense directly attributable to such income)
  9. 9. COST OF MATERIALS CONSUMED Applicable for manufacturing companies  Includes Raw materials, packing materials and intermediaries consumed 
  10. 10. PURCHASE OF STOCK IN TRADE CHANGES IN INVENTORIES • Includes those purchased for the purpose of resale • Separate disclosures w.r.t finished goods, work in progress and stock in trade.
  11. 11. EMPLOYEE BENEFIT EXPENSES Salaries & Wages Contribution to provident & other funds Staff welfare expenses such as canteen expenses
  12. 12. FINANCE COSTS Interest expenses Other borrowing costs Net gain/loss on foreign currency transactions and translation 12
  13. 13. EXCEPTIONAL ITEMS When items of income and expense, even though related to ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise, such items are known as exceptional items. Such items include:  Write-downs of inventories to net realisable value or of fixed assets to recoverable amount  Restructurings of the activities of the enterprise  Disposals of items of fixed assets  Disposals of long term investments  Legislative changes having retrospective application 13
  14. 14. EXTRAORDINARY ITEMS When an event or transaction is clearly distinct from the ordinary activities of the enterprise it is called extraordinary item. For example, losses sustained as a result of an earthquake is an extraordinary item. 14
  16. 16. DILUTED EARNINGS PER SHARE It is calculated when there are convertible preference shares, convertible debentures, options, warrants, etc. in the capital structure of a company. Diluted earnings per share focuses how much dilution would take place in Earning Per Share(E.P.S.) if all these convertible instruments are immediately converted into equity shares. = NET PROFIT CURRENT EQUITY SHARES +CONVERTIBLE BONDS 16