Now, more than ever, marketing people must be sure they can define the strategic value of their marketing efforts in terms of the profit and loss statement
, and that they understand the criteria used in management decisions.
The material profit and loss statement
is designed to furnish a segmented profit and loss statement
that relates to certain product lines, products, or models, generally depending upon the statements otherwise maintained, the amount of sales, or assets used, or operating profit attributed to, the particular product line, product, or model.
Not-for-profits operating multiple programs (especially those relying on governmental funding) should also consider, as a best practice, producing a profit and loss statement
for each program on at least a quarterly basis.
[check] This checklist is designed to help you read and understand a profit and loss statement
. It is intended as a guide, not as a replacement for full accounting support and interpretation.
If an entity's creditworthiness deteriorates, financial liabilities would be marked down to fair value and a gain would be recorded in the entity's profit and loss statement
. In the most dramatic case, an insolvent entity might appear solvent as a result of marking to market its own deteriorated credit risk.
A profit and loss statement
provides a picture of a company's performance over an accounting period (usually a year).
Posting goodwill on the balance sheet also carries the potential for impairment, which could lead to big future write-downs on the profit and loss statements
, and increase the effective tax rate for previously acquired goodwill for the period in which the write-down is recorded.
Because, in a capitalist economy, we govern entities defined by profit and loss statements
. In health care, under fee-for-service financing, hospitals, individual physicians' offices, group practices, home health agencies, nursing homes, urgent care centers, diagnostic radiology centers, therapeutic radiology centers, regional laboratories, etc.
Given the substantial non-tax management purposes served by such profit and loss statements
, it is unlikely an employer would manipulate its compensation expense simply for purposes of the test.
With respect to the other two categories, however, the safe harbor rules go substantially beyond records "maintenance" to records "creation" - requiring basic accounting records and records to produce material profit and loss statements
to be created if they do not otherwise exist.
While this is true, the program does presume a familiarity with profit and loss statements
and cash flow projections.