The single-step income statement is the format used to prepare an income statement where revenues, expenses, and net income are presented into a single subtotal.

For example, in the revenue section, it records all types of revenues no mater those revenues are from the operation or non-operation.

For example, interest income, revaluation gain, or gain on sales of assets. In the expenses section, all types of expenses records under this section and them subtotal into one line.

Those expenses include the cost of goods sold, operating expenses, and loss on revaluation. The difference between these two sections creates another section called Net Loss or Profit.

It is simple like this.

This formal is easy for users of financial statements as it provide the simple presentation of income and expenses that occurred in the entity.

The key element of the Single Step Income Statement

1) Operating revenues:

Operating revenues are the revenues that an entity generates from its normal business activities. For example, if the entity is operating as construction services, the revenues from the contractions contracts with its customers are considered as the operating revenues.

This is because of this revenue is generating from its main operation activities.

However, the company might generate some income from interest income that it deposits in the banks. This kind of income is not considered as revenues or operating revenues.

In a single-step income statement, the operating revenues are recording in the revenues section including with other income.

2) Non operating income:

Other income, non-operating income, or other income might imply the same kind of income that the entity is generating from its main operation.

Related article  Three main Element of Income Statement:

As mentioned above, that income might include interest income. Other items that normally including the other income include the income that entity generating from sales of fixed assets or others one-off income-generating activities.

In a single-step income statement, the others incomes are recording in the revenues section with the main revenues that entity generating in the period.

3) Operating expenses:

Operating expenses and non-operating expenses are recorded in the expenses all together in the single-step income statement.

The expenses that normally record in this section including salary expenses, cost of sales, advertising expenses, sales expenses, administrative expenses, as well as office supplies expenses.

4) Non operating expenses:

Non-operating expenses are the expenses that non-related to the entity’s daily operation. For example, interest expenses and other expenses that spend by the entity like selling of fixed assets.

These kinds of expenses are recording in the expenses section with other operating expenses of a single-step income statement.


The single-step income statement is not popularly used by an entity to prepare and present its income statement. However, this format is allowed to use by both IFRS and US GAAP.

The good point about this format is that users are really easy to understand what are the income and what are the expenses of the entity for the period being shown.

However, this format could miss leading users of income statement especially for non-accounting experiences users because this format treats all kinds of revenues into only one section.

For example, some revenues that are not from the main operation are also including here.

Related article  What are the Limitation (disadvantages) of Financial Statements?

In some periods, those non-operating revenues like sales of non-current assets could be larges. And it could lead users to miss understand that entity performance becomes better in that period.

The users of income statement might also miss understanding about expenses being present as they are all treated in the same section no mater they are operational or nonoperational expenses.


You can download this Single Step Income Statement template in excel or pdf by clicking below:


The following is the example of a single-step income statement: You can download excel file here.