Company Income Statement Format

Blank format

Begin with the three-line heading (company name ending in 'Berhad', 'Income Statement', and 'for the year ended ...'). Use the inner RM column for detail items such as expenses and dividends and carry their totals to the main RM column; indent items under the 'Add' and 'Less' labels, and rule the final retained profit with a double line.

Parts of the format

Three-line heading

The company name line must end with the word 'Berhad', followed by 'Income Statement' and the period 'for the year ended', not 'as at'.

Gross profit and other income

Starts with gross profit, then adds other income such as discount received to reach the total before expenses.

Company-specific expenses

Includes directors' remuneration, auditor's fee and debenture interest that are specific to a company, deducted to arrive at profit before tax.

Tax section

Tax is deducted from profit before tax to give profit after tax, which is the distributable profit.

Dividend appropriation

Interim, preference and proposed final dividends are deducted from profit after tax and are not treated as operating expenses.

Retained profit

The current year's retained profit is added to the opening retained profit to give the closing retained profit carried to the Statement of Financial Position.

Filled example

Syarikat Maju Jaya Berhad reported a gross profit of RM180,000 and discount received of RM4,000 for the year ended 31 December 2024. The company incurred directors' remuneration of RM30,000, auditor's fee of RM6,000, debenture interest of RM4,000 and other operating expenses of RM40,000; tax of RM24,000; an interim ordinary dividend of RM10,000, a preference dividend of RM6,000 and a proposed final ordinary dividend of RM20,000; retained profit as at 1 January 2024 was RM26,000.

Common layout errors

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