Income Statement Formats

Definition of Income Statement Formats

Income Statement Formats are the Pro-forma for the presentation of an income statement which shows the result of the organization for the period, i.e. profit or loss, and it differs from country to country as every country has different rules and according to which every country present the income statement of the entity as per norms and Pro-forma set by the respective country.

Income Statement Format Example as Per India Companies

Income statement format example as per india companies are:

Name of Company   ________________________

Profit and Loss/ Income statement for the period ended _________

	Particulars	Note No.	Amount (Rs.) as at the end of a current reporting period	Amount (Rs.) as at the end of a previous reporting period
	Continuing Operations
1	Revenue From Operations (Gross)		–	–
2	Other Income		–	–
3	Total Revenue (1+2)		–	–
	Expenses
	i) Cost of the consumed material		–	–
	ii) Stock in Trade purchases		–	–
	iii) Changes in the value of Inventories of stock in trade, WIP or the finished goods		–	–
	iv) Employee Cost		–	–
	v) Finance charges		–	–
	vi) Depreciation & Amortization expenses		–	–
	vii) Any other Expenses		–	–
4	Total Expenses amount		–	–
5	Profit Before the exceptional items & the extra ordinary items & the Tax (3 – 4)		–	–
6	Exceptional Items Amount		–	–
7	Extraordinary Items Amount		–	–
8	Profit Before the Tax (5-6-7)		–	–
9	Tax Expense
	Current Tax		–	–
	Deferred Tax		–	–
10	Profit or (Loss) from the continuing operations (8 – 9)		–	–
11	Profit or Loss from the Discontinuing Operations		–	–
12	Tax expense from the Discontinuing Operations		–	–
13	Net Profit or Loss from the Discontinuing Operations (11 – 12)		–	–
14	Profit or Loss for the Period (10 + 13)		–	–
15	EPS
	Basic
	Diluted

 Important Notes:

• In Case of Revenue from operations Revenue from the sale of goods, sale of services and other operating revenue less recoverable taxes is to be shown separately in notes.
• Other income like dividend, interest to be shown separately so that the nature of income can become known.
• In the case of finance cost, borrowing cost, interest cost and finance cost due to currency fluctuations to be shown separately in notes to accounts.
• In Administration expenses, salaries and wages, payment to auditors, contribution to provident fund, expenses on employee stock options, staff welfare expenses etc., are to be shown separately.
• Prior Period items are also to be shown separately.
• Basic Earnings are calculated as Net earnings divided by a number of shares.
• Diluted Earnings is calculated as net income less preference dividend divided by the weighted average number of shares, including the effect of convertible preference shares and convertible debentures.
• The Companies Act governs Indian Companies and to be listed under the Securities and exchange board of India. Hence the regulations as per the Companies Act and SEBI are to be followed.

Income Statement Format Example as per US GAAP

Income Statement format example as per US GAAP are:

Name of Company _____________________

Income Statement for the year ended ______

	Particulars	Amount ($)	Amount ($)	Amount ($)
I	Sales			XXXXX
II	Less: Sales Discount		XXX
	Sales Returns and allowances		XXX	XXXX
III	Net Sales Revenue (I – II)			XXXX
IV	Cost of Goods Sold			XXXX
	Gross Profit (III-IV)			XXXX
V	Selling Expenses
	Sales Salaries and Commission	XXX
	Sales Office Salaries	XXX
	Travel and Entertainment	XXX
	Advertising Expense	XXX
	Freight and Transportation – out	XXX
	Shipping Supplies and expenses	XXX
	Postage and Stationery	XXX
	Telephone and Internet Expense	XXX
	Depreciation of Sales Equipment	XXX
	Other Selling Expense	XXX	XXXX
VI	Administrative Expenses	XXX
	Officers’ salaries	XXX
	Office Salaries	XXX
	Legal and Professional services	XXX
	Utilities expense	XXX
	Insurance expense	XXX
	Depreciation of Building	XXX
	Depreciation of Office Equipment	XXX
	Stationery, Supplies and Postage	XXX
	Miscellaneous office expenses	XXX	XXXX	XXXX
VII	Other Income and Expense
	Dividend Revenue	XXX
	Rental Revenue	XXX
	Gain on sale of Plant Assets	XXX	XXX	XXXX
VIII	Income from operations
	Interest on Bonds and notes			XXX
	Income before Income Tax			XXXX
	Income Tax			XXX
	Net Income for the year			XXXX
	Attributable to:
	Shareholders of Company			XXX
	Non-Controlling Interest			XXX
	Earnings Per Share			XX

Notes:

• Earnings Per Share is calculated as Net Income for the year divided by the number of shares.
• US Companies are governed by the Securities Act and Securities and Exchange Act, and the regulations of the above acts to be followed.

Income Statement Format Example as UK GAAP

Income Statement format example as UK GAAP are:

Name of Company _____________

Income Statement for the period ended ___________

	Particulars	Amount (£)
	Continuing operations
I	Revenue	XXX
II	Cost of sales	XXX
III	Gross profit (I – II)	XXX
IV	Distribution costs	XXX
V	Administrative expenses	XXX
VI	Profit from operations (III – IV – V)	XXX
VII	Finance costs	XX
VIII	Profit before tax (VI-VII)	XXX
IX	Tax	XX
X	Profit from continuing operations	XXX
	Other comprehensive income for the year
XI	Gain on revaluation of property	XXX
XII	Total comprehensive income for the year (X + XI)	XXX

Notes:

• Distribution cost includes the cost incurred to deliver the product and other cost related to the product distribution and promotion.
• Administrative cost includes the salaries, wages and other office costs.
• Finance Cost includes the interest on borrowings, other interest etc.
• Profit or Loss on Revaluation is to be shown in the income statement as per the US laws.

Conclusion

Different Companies are governed by the Acts under which they registered as per the laws of that country. The ultimate purpose of the income statement is to show the results of the operations, whether there is profit or loss and the only presentation makes it different like in the case of India, it is mandatory to show income from ordinary and extra ordinary activities and whereas as per US and UK law there is no such option. Hence, the organisation’s presentation and the governing act make the difference, but the ultimate purpose of all the entities from any country is the same.

Recommended Articles

This is a guide to Income Statement Formats. Here we also discuss the definition and income statement format example as per India Companies, US GAAP, and UK GAAP. You may also have a look at the following articles to learn more –

1. Partial Income Statement
2. Purpose of Income Statement
3. Common Size Income Statement
4. Contribution Margin Income Statement