By focusing only on the statement of profit and loss,we do not obtain a full picture of all the gains and losses that may have occurred for an entity during the period.

Question

Quizplus · Accepted Answer

The statement of profit and loss only reflects the financial performance of an entity during a specific period, but it does not provide information on other gains and losses that may have been incurred, such as changes in the value of assets or liabilities, foreign exchange gains or losses, or other comprehensive income items. Therefore, it is important to review other financial statements and disclosures to obtain a full picture of an entity's financial performance and position.

By Focusing Only on the Statement of Profit and Loss,we