Above-the-Line 1
Definition
Denoting the upper part of a company’s profit and loss account, ending with the profit (or loss) for the financial year and excluding the entries explaining the distribution of profit.
Example
Example 1:
When Zenith Bank’s accountant prepares their profit and loss statement, everything recorded above-the-line shows how much the bank earned and spent before declaring its final profit for the year.
Example 2:
On Tesco’s profit and loss account, all revenue from grocery sales and operating costs appear above-the-line, giving shareholders a clear picture of the supermarket’s core trading performance.