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Income Statement

21 April 2009 1,744 views 2 Comments

Dear Group members

Please advice me on the following

Does the company need to prepare the income statement, even if it has not yet started its main operation ?

Thanking you in advance
Suraj

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2 Comments »

  • admin (author) said:

    Message from Jeroen

    Yes, absolutely! it’s one of the primary statements. All your incurred costs must be shown in the P&L.

    Best Regards

    # 21 April 2009 at 9:11 am
  • admin (author) said:

    Message from Edgar

    Yes, indeed.

    Further to that, for the purpose of Corporate Income Tax (CIT), as a result of no operations performed, and no income realised, there is a loss, thus no impact for paying CIT.

    As to what level of CIT to pay in this case, this depends broadly on tax dispositions depending on each country’s tax system. Some country allow a non- activity company to pay minimum non-activity CIT, some other not…..

    Whatever the specificity of each country, an income statement is and remains a fair pciture of expenses incurred, unless this have to be capitalised based and not expenses depending on a specific legislation.

    Brgds

    Edgar

    # 22 April 2009 at 8:35 am

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