The Statement of Comprehensive Income
The Statement of Comprehensive Income, also known as the Income Statement or Profit and Loss Statement, is a financial statement that provides information about a company's revenues, expenses, gains, and losses over a specific period. It measures the profitability of a business by showing the net income or net loss generated during the period.
The Statement of Comprehensive Income typically includes the following components:
Revenues:
Revenues represent the inflow of economic benefits resulting from the company's primary operations, such as sales of goods or services. They are reported net of any discounts, returns, and allowances.
Cost of Goods Sold (COGS) or Cost of Services:
This includes the direct costs associated with producing goods or delivering services. It includes costs such as raw materials, direct labor, and manufacturing overhead for manufacturing companies or direct labor and other costs directly attributable to providing services for service-based businesses.
Gross Profit or Gross Loss:
Gross profit is calculated by subtracting the COGS from the revenues. It represents the profit generated before deducting operating expenses.
Operating Expenses:
Operating expenses are the costs incurred in the day-to-day operations of the business. They include items such as salaries and wages, rent, utilities, marketing expenses, administrative expenses, and depreciation.
Operating Income or Operating Loss:
Operating income is derived by subtracting the total operating expenses from the gross profit. It represents the profit or loss generated from the core operations of the business.
Other Income or Other Expenses:
This section includes any non-operating income or expenses that are not directly related to the primary operations of the business. It may include items such as interest income, interest expense, gains or losses on the sale of assets, or foreign exchange gains or losses.
Income before Tax:
This represents the operating income or loss plus or minus any other income or expenses before accounting for income taxes.
Income Tax Expense:
This is the provision for income taxes based on the taxable income or loss for the period. It includes both current and deferred taxes.
Net Income or Net Loss:
Net income is calculated by subtracting the income tax expense from the income before tax. It represents the profit or loss generated by the business before accounting for any non-owner transactions.
Other Comprehensive Income:
This section includes gains or losses that are not included in the calculation of net income. It comprises items such as unrealized gains or losses on investments, foreign currency translation adjustments, pension adjustments, or changes in the fair value of available-for-sale securities.
Comprehensive Income:
Comprehensive income is the sum of net income and other comprehensive income. It represents the total change in equity during the reporting period, including both owner and non-owner transactions.
The Statement of Comprehensive Income helps stakeholders understand the financial performance of a company over a specific period and provides insights into its ability to generate profits and manage expenses effectively. It is an essential component of a company's financial statements and is often prepared quarterly and annually.
Wimax company limited
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Note 30,June-2022 30,June-2021
Revenue 01 XXXX XXXX
Less: cost of goods sold 02 (XXXX ) (XXXX)
Gross profit/(Loss) XXXX XXXX
Less:Operating Expense :
Administration overhead 03 XXXX XXXX
Selling and Distribution overhead 04 XXXX XXXX
Operating profit XXXX XXXX
Add: Non operating Income 05 XXXX XXXX
Gross profit(Loss) before interest & Tax XXXX XXXX
Less: Financial Expense 06 XXXX XXXX
Profit before income Tax XXXX XXXX
Less: Current Tax Expense 07 XXXX XXXX
Net profit After Tax XXXX XXXX
Others Comprehensive Income(if any):
Fair Value increase of share Investment 08 XXXX XXXX
Total comprehensive Income XXXX XXXX