Income Statement Heading Format

An income statement provides you a comparative analysis of what mattered for.

Income statement heading format. When ec regulation 1606 2002 became effective. The name of the company appears first followed by the title income statement the third line tells the reader the time interval reported on the profit and loss statement. January 1 december 31 2013 year ended april 5 2013 quarter ended march 31 2013 month ended june 30 2013. Income statement format 1.

Cost of goods sold section shows the cost of goods sold to produce the sales. The revenues and expenses are presented in various ways according to the preference of the issuer. This contrasts with a balance sheet which shows account balances for one exact date. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc.

1 an income statement always represents a period of time like a month quarter or a year. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. The income statement can either be prepared in report format or account format. An income statement format also shows you the costs and expenses incurred during the year.

The income statement format for uk based companies. An extremely condensed income statement in the single step format would look like this. Sales or revenue section presents sales discounts allowances returns and other related information. In the uk companies are using international financial reporting standard ifrs for filing income statements since 2005.

On the third line you must specify the exact time period covered by the statement. The income statement above shows five full calendar years plus a last twelve months ltm period as of 9 30 13. The heading of the income statement conveys critical information. Colgate s cost of sales was 6 635 million in 2015.

Two general formats are the single step and the multiple step. The heading of the income statement identifies the entity presents the title of the income statement and shows the time period covered by the report. Its purpose is to arrive at the net amount of sales revenue. This ias regulation required companies with securities debt or equity that were trading in the regulated market of the uk to use ifrs to file their income statements.

That means comparing the revenue and costs.