Statement of comprehensive income

Statement of Comprehensive Income - Calculates whether the firm has made a profit or a loss by deducting all expenses from sales revenue

A statement of comprehensive income will give an accurate calculation showing how much profit or loss the business has made. It records sales, costs and profit over a period of time (normally a year). 

The first part of the Comprehensive Income is made up of 3 components :

• Sales revenue is the money coming into the business from providing a trade
• Cost of goods sold includes the costs directly linked to providing that trade
• Gross profit is the amount of money left or the surplus after the cost of goods sold has been deducted from the sales turnover. 

Depreciation is an accountancy concept used to spread the cost of an asset over its useful life. 

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