The Statement of Profit and Loss is prepared for a specific period to determine the operational results of an undertaking. It is a performance report showing revenue earned and expenses incurred. The format is presented below:

Statement of Profit and Loss for the year ended ___

Particulars	Note No.	Figure as at the end of Current reporting period	Figure as at the end of Previous reporting period
I Revenue from operations
II Other income
III Total Revenue (I+II)
IV Expenses:
Cost of materials consumed
Purchases of stock-in-trade
Changes in inventories of finished goods
Work-in-progress and stock-in-trade
Employee benefits expense
Finance costs
Depreciation and amortisation expense
Other expenses
Total expenses
V Profit before extraordinary items and tax (III-IV)
VI Exceptional items
VII Profit before extraordinary items and tax (V-VI)
VIII Extraordinary items
IX Profit before tax (VII-VIII)

The items are explained as follows: Revenue from operations includes the sale of products, sale of services, and other operating revenues. For a finance company, it includes interest and dividend income. Other income comprises interest income (for non-finance companies), dividend income, and net gain/loss on sale of investments.

Total Revenue is the sum of Revenue from operations and Other income. Expenses include the Cost of materials consumed, Purchases of stock-in-trade, Changes in inventories, Employee benefits expense, Finance costs, Depreciation and amortisation expense, and Other expenses. Profit before tax is ascertained by deducting Total expenses and adjusting for Exceptional and Extraordinary items from the Total Revenue.