Profit and loss account meaning

Since the failure to prevent fraud offence took effect on the first day of September 2025, there has been sustained debate about the compliance hurdles it will create for businesses and its likely impact on curbing corporate fraud. The offence, set out in section 199 of the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023), seeks to make large organisations answerable for fraud carried out by employees, agents, subsidiaries, or others who deliver services for or on the organisation’s behalf; where the conduct was intended to benefit the organisation or its clients. It encompasses various specified predicate fraud offences, as well as aiding, abetting, counselling, or procuring the commission of those offences. Illustrative examples include misleading sales tactics, concealing material information from consumers or investors, and dishonest behaviour in financial markets. The offence only applies where there is a UK connection—some act forming part of the underlying fraud must have taken place in the UK, or the profit or loss arising from it must have occurred in the UK....

In this issue: Advertising, marketing and sponsorship Agency and distribution Consumer protection Contracts E-commerce International Sale and supply of goods LexTalk®Commercial: a Lexis®Nexis community Daily and weekly news alerts Dates for your diary Trackers New and updated content Advertising, marketing and sponsorship ASA rulings—23 July 2025: The Advertising Standards Authority reviewed two objections about misleading pricing displayed on the LoveHolidays site. The regulator upheld both matters. See: LNB News 23/07/2025 24. Agency and distribution Stevens v Hotel Portfolio II UK Ltd (In Liquidation) and another [2025] UKSC 28: The Supreme Court, by majority, allowed the appeal by Hotel Portfolio II UK Ltd (HPII), finding Mr Stevens jointly liable for loss resulting from the dissipation of unauthorised profits generated by Mr Ruhan in breach of his fiduciary obligations to HPII as a director. HPII owned hotels in Central London and sold them to Cambulo Madeira, a company said to be beneficially owned...

Colin Robert Parr v Keystone Healthcare Ltd and others [2019] EWCA Civ 1246 What are the practical implications of this case? The Court of Appeal confirmed, on established authority, that any advantage secured by a fiduciary while breaching his duties must be stripped and handed to the principal. Stripping that gain is neither compensatory nor restitutionary; instead, it is a sanction aimed at removing the benefit the fiduciary has wrongly acquired. Advisers should avoid confusing loss, or damages, with the accounting for profits required from a fiduciary who has acted in breach and earned money from that wrongdoing. The court also commented on the proper use of citations and warned of potential costs consequences where parties fail to observe the applicable Practice Directions. What was the background? Mr Parr and Mr and Mrs Ward held the shares in Keystone and also served as its directors. The company’s articles and a shareholders’ agreement incorporated ‘bad leaver’ provisions, under which a shareholder in breach of a relevant agreement...

CASE HUB ARCHIVED —this archived case hub records the position as at the decision dated 10 November 2022; it is no longer being updated. See further, timeline. Case facts Outline A national reference from Romania asked whether competition fines should be set by reference to a company’s overall turnover even where a substantial share is spent purchasing services on clients’ behalf. Latest developments On 10 November 2022, the Court of Justice delivered its judgment, replying in the negative: a competition authority must not rely solely on the turnover shown in an undertaking’s profit and loss account. Instead, it should assess the evidence produced by that undertaking demonstrating that the recorded turnover does not mirror its genuine economic situation and, accordingly, that a different figure which does reflect that reality ought to be treated as the relevant turnover...

This Practice Note offers guidance for the commercial practitioner on identifying when a company is encountering significant financial distress. It also condenses the key matters to prioritise to steady the business whilst evaluating the options available to the company, and outlines considerations for a business trading with a company in financial difficulty... Establishing serious financial difficulty Signals can usually be detected in a company’s financial statements and management accounts, as well as in communications with major suppliers and debt providers (eg banks, supplier statutory demands, etc). If the board fails to deal with these indicators, they will, in most cases, result in a value‑destroying formal insolvency of the company... Warning signs heightened competition causing loss of key customers and tighter margins an outmoded business model due to technological advances or shifts in customer demand/revenue channels weak cash generation/poor working capital management excessive debt and...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z This glossary provides helpful (re)insurance and underwriting definitions. For focused guidance on reinsurance terminology, see Practice Note: Reinsurance—essentials. A Accident An unforeseen or unintended event or incident that typically results in damage or injury (physical or financial) to the insured or a third party. Accidental damage Unintended or unexpected harm or damage caused to property or a person. Accidental death benefit Some life insurance policies pay an extra amount, over and above the original sum insured, if the insured dies because of an accident. Act of God (force majeure) An occurrence beyond anyone’s control, such as a natural disaster. Active underwriter The person with primary responsibility and authority to accept insurance and reinsurance risks on behalf of the members of a syndicate in the Lloyd’s market. See also Underwriter. Actuary A qualified professional who...

A: General information Date of annual review Person(s) carrying out the annual review B: Review and findings Are your financial management policies and procedures current and suitable for their purpose? ☐ Yes ☐ No—if No, record an action in section C below to revise your policies and procedures. Do your actual monthly and annual results align with your forecasts, particularly regarding: profit and loss? cash flow? balance sheet? (Only accept a reasonable margin of variance) ☐ Yes ☐ No If No, is a re-forecast of your financial performance required? ☐ Yes—ensure an action is set at section C below to deal with this ☐ No Are you confident that your monitoring arrangements function as intended for the following: the value of work undertaken on clients’ files (i.e. work in progress) relative to any payments on account of costs? the level of credit you extend to clients? aged debtors? time recording?...

3 Collaboration Objectives and Steering Group The parties agree to: Maximise the overall value of the Development Site, taking account of good planning practice. Settle the Master Plan as soon as reasonably practicable. Secure a Satisfactory Planning Permission for the Development (including Enabling Works and Shared Infrastructure), and thereafter: obtain any agreed Funding; deliver the Enabling Works and Shared Infrastructure promptly, efficiently and on time; and approve and implement the Sale Strategy. Apportion the Collaboration Expenses and any Development Profit or Development Loss in the stated Proportions, unless this Agreement provides otherwise. The Steering Group must: Provide strategic direction to achieve the Collaboration Objectives, including agreeing variations, monitoring progress and issuing instructions. Meet at least monthly (or more often if required); each party will use all reasonable endeavours to ensure its representative, or a suitably senior substitute, attends; minutes are to be taken on rotation and circulated within five Working Days. Invite appointed consultants and...