Abstract
There are two types of income statement: (i) the single-step income statement and (ii) the multiple-step income statement. A single-step income statement uses just one subtraction. This is done by subtotaling all the revenues and gains together at the top of income statement and subtotaling all the expenses and losses together below revenues. The sum of expenses and losses is then subtracted from the sum of revenues and gains to arrive at net income. Multi-step income statement involves more than one subtraction to arrive to a net income and provides more information than a single-step income statement.
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Notes
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US Congress (2011): Present Law and Issues Related to the Taxation of Financial Instrument and Products—A Report to the Joint Committee on Taxation, p. 54.
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Lessambo, F.I. (2018). Analysis of the Statement of Income. In: Financial Statements. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-99984-5_12
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DOI: https://doi.org/10.1007/978-3-319-99984-5_12
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