Full profit and loss account: what does it contain?
The full profit and loss account shows all the line items of the law. The abridged one combines some of them into a single line. Which one you prepare and which you make public depends on your size class.
The short answer
The full profit and loss account shows all the line items of art. 2:377 DCC, by nature (costs by type) or by function (costs by business function). The abridged one combines turnover, purchases and other income into a gross operating result. Micro and small entities do not make the P&L public, medium-sized may publish it abridged, large publishes everything.
Updated 30 October 2026
Key facts
| Law | art. 2:377 DCC (full), art. 2:396(4) DCC (small), art. 2:397(3) DCC (medium-sized), art. 2:395a(5) DCC (micro) |
| Formats | Besluit modellen jaarrekening (Decree on annual accounts formats): model E (by nature) and F (by function); models I and J for the limited form of a small legal entity (art. 1 of the Decree) |
| Guideline | RJ 270.5; for small RJk B13.110 |
| Applies to | Financial years from 1 January 2024 with the limits from art. 2:395a to 2:397 DCC; the format and the publication duty are the same for 2025, 2026 and 2027 |
Full and abridged in the law
The law lets you choose between two layouts of the income and expenses from ordinary business operations:
The income and expenses from ordinary business operations are split either in accordance with paragraph 3 or in accordance with paragraph 4.
Paragraph 3 is the layout by nature, paragraph 4 the layout by function. Either of them, shown in full, is the full profit and loss account. The abridged form is a combination:
In the profit and loss account the items mentioned in article 377(3)(a-d) and (g), and in paragraph 4(a-c) and (f) respectively, are combined into one item gross operating result.
In the layout by nature this concerns net turnover, change in stocks, capitalised production, other operating income and the cost of raw materials and consumables and other external costs. That balance is the gross operating result. A medium-sized legal entity does the same and states in a ratio how much net turnover rose or fell (art. 2:397(3) DCC).
By nature or by function
By nature, you show the costs by type: purchases, staff, depreciation, other costs. Turnover is then set against the costs and the change in stocks of goods produced. By function, you show the costs by business function: cost of sales, selling costs and general management costs, each including depreciation (RJ 270.502). The choice follows the nature of the activities and internal management.
If you choose by function, you additionally state in the notes the depreciation and the wages and salaries, as they would appear in the account by nature (RJ 270.504). Medium-sized legal entities may limit that to wages, social security charges and pension charges.
Case: the same BV in three forms
Frameloods BV assembles and sells bicycles. First by nature, in full (model E):
| Line item | Amount |
|---|---|
| Net turnover | € 1.250.000 |
| Change in finished goods stock | € 15.000 |
| Other operating income | € 10.000 |
| Total operating income | € 1.275.000 |
| Cost of raw materials and consumables | € 610.000 |
| Cost of outsourced work and other external costs | € 90.000 |
| Wages and salaries | € 240.000 |
| Social security charges (of which pension charges € 14.000) | € 48.000 |
| Depreciation | € 36.000 |
| Other operating costs | € 150.000 |
| Total operating expenses | € 1.174.000 |
| Operating result | € 101.000 |
| Interest income / interest expense | € 1.000 / € 13.000 |
| Result before tax | € 89.000 |
| Taxes | € 17.000 |
| Result after tax | € 72.000 |
Abridged, for a small or medium-sized BV, it combines into the gross operating result: € 1.250.000 + € 15.000 + € 10.000 − € 610.000 − € 90.000 = € 575.000. Below that follow wages € 240.000, social security charges € 48.000, depreciation € 36.000 and other operating costs € 150.000, together € 474.000. € 575.000 − € 474.000 is again the operating result of € 101.000.
By function (model F) the outcome is the same. The stock increase of € 15.000 lowers the cost of sales:
| Line item | Amount |
|---|---|
| Net turnover | € 1.250.000 |
| Cost of sales | € 800.000 |
| Gross turnover result | € 450.000 |
| Selling costs | € 140.000 |
| General management costs | € 219.000 |
| Total costs | € 359.000 |
| Net turnover result | € 91.000 |
| Other operating income | € 10.000 |
| Operating result | € 101.000 |
The costs add up: € 800.000 + € 140.000 + € 219.000 = € 1.159.000 and that is € 1.174.000 less the stock increase of € 15.000. The notes must also state that depreciation is € 36.000 and wages and salaries € 240.000.
Who prepares what and what goes to the KVK?
| Class | Prepare | Make public |
|---|---|---|
| Micro-enterprise (balance sheet total ≤ € 450.000, net turnover ≤ € 900.000, < 10 employees) | Limited P&L (art. 2:395a(5) DCC) | No: only the limited balance sheet (art. 2:395a(8) DCC) |
| Small legal entity (balance sheet total ≤ € 7,5 mln, net turnover ≤ € 15 mln, < 50 employees) | Combined into gross operating result (art. 2:396(4) DCC); model I or J is possible (RJk B13.110) | No: art. 2:396(8) DCC limits publication to balance sheet and notes |
| Medium-sized legal entity (balance sheet total ≤ € 25 mln, net turnover ≤ € 50 mln, < 250 employees) | In full; the public version may be limited | Abridged allowed, with a ratio of turnover (art. 2:397(3) and (5) DCC) |
| Large legal entity (balance sheet total > € 25 mln, net turnover > € 50 mln, ≥ 250 employees) | In full, by nature or by function | In full |
More about the publication duty: must I publish the profit and loss account?.
How it works at Jaarrekening.io
The publication version that Jaarrekening.io compiles is limited to what your size class must make public: for micro the balance sheet, for small the balance sheet with notes without the profit and loss account. The profit and loss account is in your prepared annual accounts.
Sources
Frequently asked questions
What is a full profit and loss account?
The complete account with all the line items of art. 2:377 DCC, split by type of cost (by nature) or by business function (by function). It is the opposite of the abridged form in which turnover, purchases and other income are combined into one gross operating result.
What is the difference between by nature and by function?
By nature you show costs by type, such as purchases, staff and depreciation. By function you show them by function: cost of sales, selling costs, general management costs. The result is the same. By function you state depreciation and wages additionally in the notes.
Must a small BV file the profit and loss account?
No. A small legal entity makes only the abridged balance sheet with notes public (art. 2:396(8) DCC). The profit and loss account is, however, in the prepared annual accounts, which you present to the shareholders.
What is the gross operating result?
The balance of net turnover, change in stocks, capitalised production and other operating income, less the cost of raw materials and consumables and other external costs (by nature), or of items a to c and f of paragraph 4 (by function).
May a medium-sized BV publish its profit and loss account in abridged form?
Yes. It may limit the public profit and loss account to the gross operating result, with a ratio that shows by how much net turnover rose or fell (art. 2:397(3) and (5) DCC).
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