Income Statement
Definition
A financial statement presenting a company's revenue, cost of goods sold, gross profit, operating expenses, and net income or loss over a defined period. The income statement records economic performance on an accrual basis and does not reflect cash timing. An income statement that records revenue on a cash basis rather than an accrual basis is not compliant with the FFI Standard at Growth Stage and above.
Common Misapplication
The most common misapplication is presenting an income statement that does not separate cost of goods sold from operating expenses, making gross margin impossible to calculate. An income statement that aggregates all expenses into a single line does not provide the structural information required for investor review.
FFI Standard Reference
This term is defined and applied in Book 1, Section 1.1: The Three-Statement Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Income Statement. https://ffistandard.org/glossary/income-statement/. 2026.