3 ms·
I do not believe that either GAAP or IFRS has a standard definition for "profit". Even GAAP under 703(a) refers to it as net income (and several other related n
by tomnipotent 5y ago
I do not believe that either GAAP or IFRS has a standard definition for "profit". Even GAAP under 703(a) refers to it as net income (and several other related numbers like gross profit).
- rahimnathwani 5y agoYes profit is the same as net income. But you wouldn't know that if you read those two sections of the text. They use the word 'profitability' several times, without ever defining it. Right at the end of part 2 (income statement), they say this: "The difference (or "net") between the revenues and expenses for Direct Delivery is often referred to as the bottom line and it is labeled as either Net Income or Net Loss." The above is true, but it's kind of hard to grasp for someone whose only exposure to accounting is this site. And the previous sentence again refers to 'profitability' without being explicit that 'profit' and 'net income' are the same thing.
- nightski 5y agoIf you go to the actual section on financial statements/income statement it breaks it down much further which is what I would expect.
- rahimnathwani 5y agoWhich part of which section? (I only looked at section 1, parts 1 and 2.)
- Closi 5y agoWell, net profit is the same as net income. Gross profit is different.
- xboxnolifes 5y agoThe point isn't about whether they are the same or not. The point is the the teaching material isn't very clear on the terminology used.
- antman 5y agoWould reading IFRS suffice? Is there a suggested book?
- rahimnathwani 5y agoThe IFRS standards presume the reader is familiar with accounting principles and practice. They provide guidance specific to (i) certain more complex/unusual situations, e.g. business combinations, and (ii) specific verticals, e.g. consumer lending and insurance.