The Income Statement and Changes in Equity
Submitted by lev_lafayette on Sun, 11/01/2009 - 09:49The income statement (statement of performance) relates to a period of time. The regular production of an income statement allows managers to compare actual performance against the budget. The statements are normally for internal consumption only. The purpose is to measure profit, but summarising the income for that period and deducting the expenses incurred in earning that income.