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Economic profit

Economic profit: income - explicit and implicit costs   It is a concept arising from general economic theory and its purpose is to evaluate the success of the company. The difference between the economic and accounting profit is described in this article.

Tax profit

Tax profit is profit serving as the basis for calculating income tax under the provisions applicable tax law. Tax profit calculation is usually based on the accounting profit that is transformed to tax base.

Forms of accounting profit used in practice

Above in other articles were mentioned forms of profit that are somehow clearly defined. Nevertheless, the economic world is fond of other indicators and some of them can be usually found in the reporting system of nearly any company. They are often not based on any GAAP (not mentioned even in IFRS)

EBITDA / PBITDA

EBITDA (PBITDA) is the total profit/loss without: interest expense (i.e. cost of debt) income tax depreciation and amortization (i.e. write-downs of intangible assets) possibly also profit/loss from discontinued operations (defined in IFRS, other GAAPs may not use this concept) EBITDA usuall

EAT / PAT

EAT (PAT) is the total profit/loss after tax from continuing operations, OR more often the total profit/loss after tax (i.e. including the profit/loss from discontinued operations).   It is therefore EBT with income tax or possibly also profit/loss from discontinued operations. Continuing or

EAC

EAC's is total profit/loss after tax, after allocation to statutory reserve and dividend payments to the owners of preferred shares. (18) EAC = Earnings Available for Common stockholders

Accounting profit

Accounting profit = income - explicit costs It is a term defined by accounting standards, rules or national legislation used for the purpose of preparing financial statements or possibly tax returns. The difference between economic and accounting profit is described in this article. Accounting pr

Categories of profit in IFRS / IAS

Profit (or loss) income   minus expenses →  excluding other comprehensive income and expenses (i.e. Other comprehensive income) (20)   Other comprehensive income incomes not included in the profit and loss   minus expenses not included in the profit an

Operating income / Operating profit

Operating income is the profit/loss from ordinary operations of the company without: interest expense (i.e. cost of debt) income tax incomes and expenses from non-operational activity (i.e. Non-operating result), which is the result of other than ordinary activities. possibly also profit/loss

EBT / PBT

EBT (PBT) is the total profit/loss without: income tax possibly also profit/loss from discontinued operations (defined in IFRS, other GAAPs may not use this concept)   EBT thus equals indicators: EBIT after including interest expense (i.e. cost of debt) EAT (PAT) after removing the i

Net income

Net income is the total profit/loss (that is, including net profit/loss from discontinued operations), sometimes shown after deduction of profit/loss attributable to non-controlling interest (minority interest).

NOPAT

There are many definitions of NOPAT, therefore the use of this indicator is quite misleading. Common definition is: profit/loss on ordinary activities after taxation without taxed interest expense (i.e.  interest expense is adjusted for the effect of tax savings resulting from the interest exp

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