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Definition of profit and loss account (income statement)
the Profit and Loss Account according to HGB forms together with the balance sheet and - in the case of corporations, the notes - the annual financial statements; further elements are added according to IFRS. It is also called income statement, income statement, success balance sheet, income statement, income statement, sales statement or expense and income statement and supplements the balance sheet by not only showing the success, but also revealing its composition.
P&L for the presentation of the economic processes
The income statement is a period calculation. It gives a summary and clear presentation of the economic processes that took place during the accounting period. The result is determined as the balance between the expenses and income incurred in a certain period. The breakdown of the components that affect income in the income statement makes the sources of success visible.
The income statement can be carried out in accordance with HGB and IFRS using two methods, both of which lead to the same result.
Corporations (according to Section 275 (1) HGB)
For both procedures, the staggered form is prescribed for corporations (according to Section 275 (1) HGB), which ensures greater clarity than the account form. The annual surplus / annual deficit is to be shown as a success. According to § 158 AktG, the profit carried forward /Loss carryforward from the previous year, to take into account capital and revenue reserves, so that the net profit or net loss results.