Profit
Profit is income less expenses for a stated period under the relevant accounting basis. Calculate the specified subtotal by including the income and expenses relevant to that measure. Gross profit, operating profit and profit after tax are different figures. Accruals, depreciation and non-cash items explain why reported profit can differ from cash movement. A loss arises when the relevant expenses exceed income for the same period.
Worked example
Revenue and other income of 1,000 less expenses of 800 give profit 200.
Common mistake
Profit is not the same as cash received or a bank balance.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | F2 | Direct | July 2027–August 2028 |
| ACCA | F3 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
