Abstract:

Profit (or loss) is one of the most important economic categories used to assess the financial position of an entity and its management. The rules for its presentation in the financial statements are set out in accounting standards which have been subject to quite large changes in recent years. Since 2009, the companies listed on regulated markets in the European Union have been required to present total comprehensive income (CI) and its components in the comprehensive income statement prepared under International Financial Reporting Standards (IFRS). It is the result of a joint agreement between the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) to take into account the information needs of investors and other capital 'providers'. This statement is also the result of adopting a new concept of presenting information on the overall result - comprehensive income, not only profit and loss.