Liliana Galiano Dec 11, 2009:

It is right to say that in the Profit and loss account profits and expenses are mentioned, but this does not seem to be the case.

Erik Bry Dec 11, 2009:

DANII,

There is no such thing.
It's not a loss, it's an expense!

Unfortunatley, in Spanish it seems to be worded as a loss. But that is a technicality.
When translating, the correct term in English for accounting is EXPENSE. Trust me I am an accountant. :)

In English the wording difference between the two is very specific and important. The target audience will need to see "expense".
Research on the web the difference between losses & expenses, & you should understand. They are two very different specific terms. Losses & expenses come from two different sources.
Research any P & L (income statement) on the web and you'll see.

DANII (asker) Dec 11, 2009:

What about loss on bad debt?..

Erik Bry Dec 11, 2009:

http://www.businessdictionary.com/definition/bad-debt-expens...
http://en.wikipedia.org/wiki/Bad_debt
In financial accounting and finance, bad debt is the portion of receivables that can no longer be collected, typically from accounts receivable or loans. Bad debt in accounting is considered an expense.



http://www.investorwords.com/384/bad_debt.html

Erik Bry Dec 11, 2009:

Difference between Expense & Loss In accounting there is a difference between an expense and a loss. As there is the same difference between revenue and gains. Revenues are from the daily operations. Gains are from peripheral activities.

An expense is related to a company’s main operations.
Is it related to what the company does for business? Yes, it's an uncollectible account from sales...it's an expense.

A loss is associated with a “peripheral” or “incidental” transaction.
For example, sale of an asset used in the business, loss from a lawsuit settlement, and loss from retirement of bonds. The company isn't in the business of selling assets, lawsuits, bonds, etc...therefore it's a loss.

On the Income Statement expenses are taken against revenue as "operting income/expenses. Gains and losses are grouped together at the bottom as "other income" (non-operating).

I'm also an accountant, and I can tell you that this is related to a company's main operations...it is an EXPENSE.