Form No. 2 of the financial statements "Profit and Loss Statement" is a document that reflects the income of the organization and the direction of spending. The result of this report is the determination of the amount of profit or loss that the company has.
Instructions
Step 1
Form No. 2 is filled in on an accrual basis from the beginning of the year. The first column indicates the name of the indicator, in the second - its code, in the third - the indicators of the reporting period, in the fourth - the previous one. If the data are incomparable, they are corrected, and the reasons for their changes are indicated in the explanatory note to the balance sheet. This can happen due to a change in the accounting policy of the enterprise or legislation and regulations in the field of accounting.
Step 2
In the “Profit and Loss Statement”, indicators with a negative value (expenses) are shown in parentheses. Income and expenses in this form are shown on a gross basis. In this case, the profit is determined quite simply - by subtracting the amount of expenses for the corresponding reporting period from the amount of income received.
Step 3
Income in form No. 2 is divided into income from ordinary activities (proceeds from the sale of goods, products, works, services) and other income (interest receivable, income from participation in other organizations, etc.). Expenses are reflected in the same way. Expenses for ordinary activities include the costs of manufacturing, purchasing, selling goods, products, works, services, i.e. direct cost, as well as selling and administrative expenses.
Step 4
Gross profit in the report is shown as the difference between the proceeds from the sale of goods, products, works and services and their cost. The next indicator is the profit from sales. This is the difference between gross profit and the sum of selling and administrative expenses.
Step 5
Profit before tax is a measure of profit from sales increased by other income and reduced by other expenses.
Step 6
The company's net profit is recorded after deducting income tax from profit before tax. At the same time, it is adjusted for the amount of deferred tax liabilities and deferred tax assets. Net profit is calculated in the first table of form No. 2. The second table of this form contains a breakdown of other income and expenses of the organization.
