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The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year. The P&L statement is synonymous with the income statement. These records provide information about a company’s ability or inability to generate profit by increasing revenue, reducing costs or both. Some refer to the P&L statement as a statement of profit and loss, income statement, statement of operations, statement of financial results or income, earnings statement or expense statement.

The P&L statement is one of three financial statements every public company issues quarterly and annually, along with the balance sheet and the cash flow statement. It is often the most popular and common financial statement in a business plan as it quickly shows how much profit or loss was generated by a business.

The income statement, like the cash flow statement, shows changes in accounts over a set period. The balance sheet, on the other hand, is a snapshot, showing what the company owns and owes at a single moment. It is important to compare the income statement with the cash flow statement since, under the accrual method of accounting; a company can log revenues and expenses before cash changes hands.

The income statement follows a general form as seen in the example below. It begins with an entry for revenue, known as the top line, and subtracts the costs of doing business, including the cost of goods sold, operating expenses, tax expenses, and interest expenses. The difference, known as the bottom line, is net income, also referred to as profit or earnings. You can find many templates for creating a personal or business P&L statement online for free.

It is important to compare income statements from different accounting periods, as the changes in revenues, operating costs, research, and development spending and net earnings over time are more meaningful than the numbers themselves. For example, a company’s revenues may grow, but its expenses might grow at a faster rate.

There are special accounting rules for trust accounts and a Trust Audit is designed to ensure compliance with accounting rules.

It aims to set out the thought process that should be adopted when considering who, within an audit firm, can or should act as a trustee of a trust which has an investment in an audit client.A Trust Report is asked to be made each financial year by Chartered Professional Accountant to summarize the findings of the Trust Audit. The relevant Professional Standards Regulation Board will provide a list of procedures to be followed to complete the annual Trust Audit. The Accountant will choose a sample of accounts to audit based on the guidelines provided and complete the required procedures on the sample chosen.

Any findings of non-compliance with the regulations laid out by the Professional Standards Regulation Board are reported in the Trust Report. The Trust Report is then sent to the appropriate Professional Standards Regulation Board for the Board to review and act upon if required.

Letter of Undertaking is commonly known as LUT. The Letter of Undertaking (LUT) is guided to be equipped in form GST RFD 11 under rule 96A, whereby the person involved in exporting business claims that he/she would meet all the requirements prescribed under GST while exporting without making IGST payment.

Filing Letter of Undertaking is compulsory to export goods and services without payment of Integrated Taxes. If LUT has not been appointed, the export can only be made through payment of IGST or by furnishing an export bond.

Accounting is the process in which business activities are recorded orderly and systematically to determine the productivity of the business. This account is managed and prepared by the company or team to prepare financial reports, which also helps in the financial growth of the company. They also determine whether a particular investment is feasible in the current market scenario and what is the amount of money that is to be invested. In the case of small businesses and organizations, these functions are handled by an accountant or bookkeeper or at most a certified accountant. But in the case of larger organizations, a team of certified public accountants which is also known as CPA and chartered accountants (CA) along with their teams is the one who handles these transactions and takes care of accounting.

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