Banking Exam Question - What are the provision of NRB about profit and loss statement & directives? Explain

 

Introduction - Profit & Loss Statement

A profit and loss (P&L) is a money related explanation that condenses the incomes, expenses and costs brought about amid a particular time frame, ordinarily a financial quarter or year. These records give data about an organization's capacity – or deficiency in that department – to produce benefit by expanding income, decreasing expenses, or both. The P&L articulation is additionally alluded to as "explanation of benefit and misfortune", "salary proclamation," "articulation of operations," "proclamation of monetary outcomes," and "wage and cost proclamation."

The profit and loss account, ordinarily alluded to as the salary proclamation, is one of three budgetary explanations each open organization issues quarterly and every year, alongside the asset report and the income proclamation. The wage explanation, similar to the income proclamation, indicates changes in accounts over a set time frame. The asset report, then again, is a depiction, demonstrating what is claimed and owed at a solitary minute. It is vital to contrast the pay articulation and the income explanation, since under the accumulation technique for bookkeeping, incomes and costs can be logged before money really changes hands.