How much do you know about the preparation of income statement? When the income statement is compile

Income statement, also known as profit and loss statement, refers to the accounting statement that reflects the operating results and distribution of the enterprise in a certain accounting period, and is the financial record of the company's operating performance in a period of time, reflecting the sales revenue, cost of sales, operating expenses and tax status during this period, and the statement result is the profit or loss realized by the company.

When the income statement is compiled, it is necessary to compile 6 profits, and their respective functions are:

1. Reflect the net sales, that is, the balance of the total sales after deducting the return and discount of sales, as well as sales tax.

2. Reflects gross sales profit, that is, the balance of net sales minus cost of sales.

3. Reflect the sales profit, that is, the balance of the gross profit of sales minus the expenses of the sales expenses, management expenses, financial expenses and other periods.

4. Reflects the operating profit, that is, the balance of the sales profit plus the profit of other businesses.

5. Reflect the total profit, that is, the balance after the operating profit plus (minus) the net investment income, non-operating income and expenditure, and the cumulative impact of the change of accounting method on the profit and loss of the previous period.

6. Reflect the profit after income tax, that is, the balance of total profit minus accrued income tax (expense).

Effect analysis. The multi-step income statement classifies income, expenses and expenditure items, lists some intermediate profit indicators, and reflects the calculation process of net profit for the current period step by step, which can provide richer information than the one-step income statement, and is helpful for the comparative analysis of the corresponding items in different enterprises or different periods of the same enterprise.

However, the disadvantage of the income statement is that some meaningful intermediate information, such as gross sales profit, operating profit, total profit, etc., is not directly reflected, which is not conducive to the comparison of corresponding items in different enterprises or different periods of the same enterprise.

The preparation of China's income statement adopts a multi-step method, and the calculation formula of total profit according to the income statement is as follows:

Total profit = profit from the business book + non-operating income - external expenses for late business judgment;

Operating profit = operating income - operating costs - operating taxes and surcharges - selling expenses - administrative expenses - financial expenses - asset impairment losses fair value change gains and losses + investment income;

Net Profit = Total Profit - Income Tax Expense. Note: Yes.

In the production and operation, the enterprise constantly incurs various expenses, and at the same time obtains various incomes, and the income minus expenses, and the remaining part is the profit of the enterprise. The comparison between the revenue earned and the related expenses incurred is the operating results of the enterprise. If the enterprise is not properly operated, and the production and operation expenses incurred exceed the income obtained, the enterprise will incur losses; Otherwise, the company can make a certain profit.

The accounting department should regularly (generally monthly) account for the operating results of the enterprise, and prepare the accounting results into a statement, which forms the income statement.

Detailed burn-out steps for the preparation of the income statement:

1. Prepare accounting vouchers according to the original vouchers, register the general ledger and sub-ledgers, and check the accounts, accounts and certificates.

2. On the premise of ensuring that all accounting operations are recorded, prepare the trial balance sheet, check the correctness of the accounting accounts, and prepare for the preparation of accounting statements.

3. Calculate and fill in the items of the income statement according to the amount of the loss of the income statement in the trial balance sheet and the amount of the relevant detailed account.

4. Calculate operating profit. Operating profit is calculated based on operating income, minus operating costs, business taxes and surcharges, selling expenses, administrative expenses, financial expenses, asset impairment losses, plus fair value change gains (less fair value gains and losses) and investment income (less investment losses).

5. Calculate the total profit. The total profit is calculated based on the operating profit, plus non-operating income, minus non-operating expenses.

6. Calculate net profit (or net loss). Net profit is calculated based on the total profit, minus income tax expense.

4. Check the completeness and correctness of the high core of the income statement, including whether the filling of the header part is complete, whether the filling of each item is correct, and whether the calculation of various profits is correct.

5. Signature and seal of relevant personnel.

The above is the legal knowledge about this aspect, I hope it can be helpful to you.