Profit and Loss Statement

I. Formal Definition

The financial statement that summarises revenue, expense, and resulting profit or loss for a defined period, typically a quarter or full year. Also known as the income statement, the P&L is the primary measure of operating performance. The federation requires the P&L to follow the GAAP or IFRS classification standard adopted, with non-recurring items separately disclosed and quantified, segment reporting where applicable, and footnote tracing to the trial balance under UFMS-001:5.1. Reclassifications between line items are footnoted with quantification and prior period comparison.

II. Etymology

From the Italian conto profitti e perdite of fifteenth century merchant accounting; the abbreviated English form stabilised in nineteenth century corporate practice.

III. Federation Usage

Federation members publish the P&L following the adopted standard with non-recurring items separately disclosed. Segment reporting is included where applicable. Reclassifications are footnoted with prior period comparison under MEV-Annex:6.1.

IV. Related Terms

• balance-sheet
• cash-flow-statement
• gross-profit
• operating-margin

V. Authoritative Citations

• UFMS-001:5.1UFMS Article V - Income Statement
• MEV-Annex:6.1MEV Annex VI - P&L Reporting

VI. Citation in BibTeX

@misc{ifo4_glossary_p_and_l,
  title        = {{Profit and Loss Statement}},
  author       = {{IFO4 Federation Editorial Board}},
  howpublished = {{IFO4 Federation Glossary, slug \texttt{p-and-l}}},
  year         = {2026},
  url          = {https://ifo4.org/glossary/p-and-l},
  note         = {Category: Accounting; key: ProfitandLossStatement}
}

VII. Challenge This Definition

Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.