An accounting statement which sets out the details of a company's revenues less expenses, including depreciation and tax, to give an overall profit or loss figure. The profit and loss account (which in accounting standards is now referred to as the income statement of statement of comprehensive income) must give a true and fair view of the profit or loss of the company for its financial year (section 396, Companies Act 2006) and, together with the balance sheet, it is an important tool for analysing the financial health of a company.

For more information on company accounts, see Practice note, Company accounts and reports: overview.