Statement Of Comprehensive Income

The Statement of Comprehensive Income presents the income, expenses and profit performance of a company over a specified period of time.  The key information presented would be the revenue which is also known as the “topline” and the profits for the year which is also known as the “bottom line”.

Revenue is the amount of money that a company invoices or recognises from the performance of its core business activities, after excluding discounts and returned goods during a financial period.  Revenue is also referred to as Sales or Turnover. Revenue is a crucial part of fundamental analysis as a business must bring in revenue to turn a profit. If there is no revenue, there is no profit since profit is a difference between revenue and expenses incurred by the business.

Profit For The Year is shown on the company’s Income Statement, which is often referred to as “bottom line”. It shows the final representation of how much money a company has made from doing business in a financial period. In simple terms, Profit For The Year is the money left over in a business after all expenses like selling and marketing expenses, finance and administration expenses, finance costs, depreciation and amortization, and taxes. It is also referred to as “Profit After Taxation” or “Net Profit”.

Profit For The Year represents the surplus of revenue made over expenditure in a specific period of time. If a deficit is made then this results in a Loss For The Year.  Total comprehensive income is the change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.  Total comprehensive income comprises all components of ‘profit or loss’ and of ‘other comprehensive income’.