Practical example

Consider a commercial company with R$ 100,000 in sales recognized during the period. For simplicity, assume the following deductions in the income statement presentation:

Calculation: R$ 100,000 − R$ 5,000 − R$ 10,000 = R$ 85,000.

Gross revenue is not profit

ROB is a starting point for analyzing performance. After deductions, you arrive at net revenue. To determine profit or loss, you still need to consider costs, expenses, and the other components of the result.

Gross revenue is not receipt

A credit sale can be included in the period's revenue even if the customer has not yet paid, provided the revenue recognition criteria are met. When the customer pays, the receipt will settle the receivable recorded under Accounts Receivable, without generating a second revenue entry.

Where it appears in the income statement

In the educational presentation used in this material, gross revenue appears before deductions, followed by net revenue. The DRE is the Income Statement for the Year.

Simplified example for educational purposes. The tax amounts are hypothetical and do not represent a rate applicable to a specific company. Measurement and presentation must comply with the relevant accounting standards.

Marli Voss Hartmann da Silva
Versatilis Studies and Concepts