The Profit and Loss account does exactly what it suggests it shows the profit or loss that a business has made over a period of time, usually six months or one year, this is called the accounting period. Once prepared the profit and lose account can be used by a number of interested parties in a number of ways, it can be compared to a previous profit and loss account to see how the business …showed first 75 words of 1095 total…

…showed last 75 words of 1095 total…to produce accounts that reflect them in the best light they can manipulate the stock and the depreciation value without breaking any rules as long as they work within the guidelines set out in the SSAP’s and the FRS’s Until these rules are tightened up and one set of rules is drawn up for businesses within their industry’s then there will always be scope to produce accounts to suit the businesses themselves.