Considerations about the structure and preparation method of the new format of profit and loss statement

Abstract

The new format of profit and loss statement was elaborated based on the Annex VI of the Directive 2013/34/EU and entered into force starting reporting period 2020. In this format additionally were included several categories of income and expenses that characterize the operational and financial activities of the entity. This article examines the main issues concerning to the structure and preparation method of the profit and loss statement which relate to:- general rules for preparation the profit and loss statement;- the way of calculation the indicators related to revenues, expenses and financial results;- the structure of the notes to the profit and loss statements;- the presentation of the information related to the expenses classified by nature. The accounting regulations of the Republic of Moldova provide for two formats of the profit and loss statement (complete and condensed) which are prepared according to the category and information needs of the entity. Key words: profit and loss statement, entity, explanatory notes, revenues, expenses, financial results, financial period, financial performance.