PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

The profit and loss account (P&L) subtracts indirect expenses from gross profit to arrive at net profit. The P&L itself is not disclosable in terms of the Companies Act or GAAP, but elements of it like directors remuneration or finance costs are disclosed on the face of the income statement or by way of a note. The indirect or fixed costs of a company are those which do not vary with sales levels - like rent, telephone, salaries and electricity. These expenses must be paid whether the company sells anything in the accounting period or not.

Edit Glossary Term