"Income statement": Accounting. (IS). International Accounting Standards (IAS) and US term for the UK Profit and loss account, that sets out how the net profit is arrived at. One of the IAS Primary statements. Under the 'double entry' accounting convention, income items in the Income statement are Credits (CR) and expenses are Debits (DR). A net profit for the period under review is a Credit in the Income statement. A net loss for the period is a Debit in the Income statement. Net profits or losses for the period - in the Income statement - feed through in turn to the Shareholders' funds (cumulative retained profits or losses) in the 'bottom half' of the Balance sheet (as at the end of the period).