Editing Income statement (section)

===Operating section===
* '''[[Revenue]]''' - Cash inflows or other enhancements of assets (including [[accounts receivable]]) of an entity during a period from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major operations. It is usually presented as sales minus sales discounts, returns, and allowances. Every time a business sells a product or performs a service, it obtains revenue. This often is referred to as gross revenue or sales revenue.<ref name="ReferenceA">{{Citation needed|date=February 2018}}</ref>
* '''[[Expenses]]''' - Cash outflows or other using-up of assets or incurrence of liabilities (including [[accounts payable]]) during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.
** '''[[Cost of Goods Sold]] (COGS) / [[Cost of Sales]]''' - represents the direct costs attributable to goods produced and sold by a business (manufacturing or merchandizing). It includes ''material costs'', ''direct labour'', and  ''overhead costs'' (as in [[absorption costing]]), and excludes operating costs (period costs) such as selling, administrative, advertising or R&D, etc.
** '''Selling, General and Administrative expenses ([[SG&A]] or SGA)''' - consist of the combined payroll costs. SGA is usually understood as a major portion of non-production related costs, in contrast to production costs such as direct labour.
*** '''Selling expenses''' - represent expenses needed to sell products (e.g., ''salaries of sales people, commissions and travel expenses, advertising, freight, shipping, depreciation of sales store buildings and equipment'', etc.).
*** '''General and Administrative (G&A) expenses ''' - represent expenses to manage the business (''salaries of officers / executives, legal and professional fees, utilities, insurance, depreciation of office building and equipment, office rents, office supplies'', etc.).
** '''[[Depreciation]] / [[Amortization (accounting)|amortisation]]''' - the charge with respect to [[fixed asset]]s / [[intangible asset]]s that have been capitalised on the [[balance sheet]] for a specific (accounting) period. It is a systematic and rational allocation of cost rather than the recognition of market value decrement.
** '''Research & Development (R&D) expenses''' - represent expenses included in research and development.

''Expenses'' recognised in the income statement should be analysed either by '''nature''' (raw materials, transport costs, staffing costs, depreciation, employee benefit etc.) or by '''function''' (cost of sales, selling, administrative, etc.). (IAS 1.99) If an entity categorises by function, then additional information on the nature of expenses, at least, – depreciation, amortisation and employee benefits expense – must be disclosed. (IAS 1.104)
The major exclusive of costs of goods sold, are classified as operating expenses. These represent the resources expended, except for inventory purchases, in generating the revenue for the period. Expenses often are divided into two broad sub classifications selling expenses and administrative expenses.<ref name="ReferenceA"/>