The document defines a statement of profit and loss (also known as an income statement) as a financial statement that summarizes the revenues, costs and expenses incurred during a period of time, usually a quarter or year. It provides information on a company's ability to generate profit by increasing revenue and reducing costs. The document then provides the standard format and sections included in a statement of profit and loss, such as revenue from operations, other income, expenses, profit/loss, and earnings per share calculations. Key expenses include cost of materials, purchases, employee costs, depreciation, and finance costs.