Aqid ERPRevenue, costs, and what is left
The income statement (قائمة الدخل) shows the period's revenue, the costs set against it, and the profit, in the order the IFRS for SMEs presents them: revenue, cost of sales, gross profit; operating expenses, operating profit; finance cost, profit before zakat; zakat (or income tax), net profit. Non-listed Saudi companies report under IFRS for SMEs as adopted by SOCPA; the layout is the same under full IFRS.
- The company name and the period ("for the year ended").
- Each line with a note reference where the notes explain it.
- Costs as negative figures, subtotals in bold: gross profit, operating profit, profit before zakat, net profit.
- A comparative column for the prior period, in the statements you file.
The sample year
Revenue of 860,000.00 less cost of sales of 410,000.00 is a gross profit of 450,000.00 (52 percent). Operating expenses of 327,000.00 leave an operating profit of 123,000.00; finance cost of 4,000.00 gives 119,000.00 before zakat. The zakat line is shown at 2.5 percent of that profit for illustration; the real charge is 2.5 percent of the zakat base, which is computed from equity and adjusted profit, not from profit alone.
| Gross margin | 450,000 ÷ 860,000 = 52.3% |
|---|---|
| Operating margin | 123,000 ÷ 860,000 = 14.3% |
| Net profit | 116,025.00 |