Financial Literacy for Strata Councils and Owners: The Income Statement

Income Statement

The statement of operations or income statement is one of the reports commonly presented to Strata Council, Owners and professional managers for periodic review. This statement is fairly intuitive but is often not fully understood because the purpose of the statement is not known and the accounting methods used to prepare it are sometimes inconsistently applied. Hopefully, after reading this article, you will be able to read a statement of operations and understand what’s happening with your Strata.
In its simplest form, the statement of operations shows how the Strata has performed over a period of time. It is the report showing what money was supposed to come in, how money was spent, and what money was left over for a specific period of time.
To read the rest of this article by Leo Van Wensem, CPA, CGA, download this PDF (published in the Spring 2016 edition of the CHOA Journal) CHOA Journal Spring 2016 – Income Statement (LVW).

This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation. Please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.