Net income in accounting is an entity's income minus expenses for an accounting period.^[1] It is computed as the residual of all revenues and gains over all expenses and losses for the period,^[2] and has also been defined as the net increase in stockholder's equity that results from a company's operations.^[3] In the context of the presentation of financial statements, the IFRS Foundation defines net income as synonymous with profit and loss.^[1]

Net income is a distinct accounting concept from profit. Profit is a term that "means different things to different people"^[3], and different line items in a financial statement may carry the term "profit", such as gross profit and profit before tax.^[1] In contrast, net income is a precisely defined term in accounting.^[3]

Overview[link]

Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings. As profit and earnings are used synonymously for income (also depending on UK and US usage), net earnings and net profit are commonly found as synonyms for net income. Often, the term income is substituted for net income, yet this is not preferred due to the possible ambiguity. Net income is informally called the bottom line because it is typically found on the last line of a company's income statement (a related term is top line, meaning revenue, which forms the first line of the account statement).

The items deducted will typically include tax expense, financing expense (interest expense), and minority interest. Likewise, preferred stock dividends will be subtracted too, though they are not an expense. For a merchandising company, subtracted costs may be the cost of goods sold, sales discounts, and sales returns and allowances. For a product company advertising, manufacturing, and design and development costs are included.

An equation for net income[link]

Net sales (revenue)

– Cost of goods sold

= Gross profit

– SG&A expenses (combined costs of operating the company)

= EBITDA

– Depreciation & amortization

= EBIT

– Interest expense (cost of borrowing money)

= EBT

– Tax expense

= Net income (EAT)

References[link]

1. ^ ^{a b c} IFRS Foundation. (2012) IAS 1 Presentation of Financial Statements. Retrieved on April 14, 2012 from http://eifrs.ifrs.org/eifrs/bnstandards/en/2012/ias1.pdf
2. ^ Stickney, et al. (2009) Financial Accounting: An Introduction to Concepts, Methods, and Uses. Cengage Learning.
3. ^ ^{a b c} Needles, et al. (2010) Financial Accounting. Cengage Learning.

See also[link]

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Tareq Al-Suwaidan
Born	(1953-11-15) November 15, 1953 (age 58) Kuwait
Education	Penn State University
Occupation	An Author, a speaker and the director of the arabsat TV channel Alresalah
Religion	Islam Sufi Non-Sunni
Website
www.suwaidan.com

Dr. Tareq Mohammed Al-Suwaidan (Arabic: طارق محمد السويدان‎; born November 15, 1953) is a Kuwaiti entrepreneur of limited success, author , speaker and director of the arabsat TV channel Alresalah as well as a leader of the Kuwati Muslim Brotherhood ( The Muslim Brotherhood , A political Movement not actualy following Sunni Islam has been considered a terrorist organization by Many Western and Middle Eastern countries for over 50 years ) . He is well-known in the Middle East and in Muslim communities throughout the world for his management/strategic planning training, motivational speaking and television shows and appearances as well as his controversial Views that contradict Mainstream Islamic thought and is considered by many to be a deviant . According to Forbes magazine (Arabic edition: Forbes Arabia), Al-Suwaidan ranks second in annual net income among Islamic speakers in the Muslim world with an estimated net profit of $1 million in 2007.^[1] Al-Suwaidan claims to be trained in the classical Islamic sciences in his youth but this claim is unsubstantiated .He lived and studied in the United States, having received a B.S. in petroleum and natural gas engineering from University of Pennsylvania and an M.Sc. and Ph.D. in petroleum engineering from the University of Tulsa.^[2] .

Media and management[link]

Al-Suwaidan is a TV personality, with TV shows ranking among the highest in ratings on Middle East satellite TV channels such as MBC, Abu Dhabi TV, Orbit, Dream, Iqra and Al-Resalah TV.^[3][4][5] An estimated 10 million viewers tune in daily to his show on MBC annually in Ramadan^[6]

Al-Suwaidan is the General Manager of Al-Resalah Satellite TV, the brainchild of the very liberal Saudi businessman Prince Al-Waleed bin Talal which begs the question , why does a very liberal Billionaire Support a leader of the Islamic Brother hood ? .^[7]

Al-Suwaidan is a management, leadership and strategic planning consultant in the Middle East and is CEO of the Gulf Innovation Groups.^[8] He is frequently consulted by prominent regional governmental and private sector organizations.^[9] He is also the chairman of the AWARE (Advocates for Western-Arab Relations & Exchange) center in Kuwait.^[10]

Views and ideology[link]

Al-Suwaidan is a leader of the Muslim Brotherhood in Kuwait and describes himself as a "moderate Islamist".^[11][12] Al-Suwaidan holds pro-democratic, free speech and freedom of religion viewpoints and is one of the signatories of A Common Word Between Us and You, an open letter by Islamic scholars to Christian leaders, calling for peace and understanding.^[13][14] He has supported women's rights within Islamic sharia law and advocated for reforming traditional understanding of Islam.^[15][16] Al-Suwaidan has condemned the 9/11 terrorists saying "these people are very dangerous to themselves, to the Arab world, to the Islamic world itself, and to Islam itself."^[17]

Al-Suwaidan has called for the liberation of Palestine and said Muslims would be willing to sacrifice their sons for the cause of the Al-Aqsa mosque.^[18] In May 2007, Al-Suwaidan was listed by U.S. federal prosecutors, along with a group of U.S. Muslim Brotherhood members, as an unindicted co-conspirator in the terrorism financing case against the Holy Land Foundation for Relief and Development which was convicted along with its leaders of financing Hamas.^[19][20][21] Al-Suwaidan has not been charged in any associated prosecutions.

In 2006 he demanded that the European Union, as well as the rest of the world, enact “a law that forbids the insult to religious figures and religious sacred opinions.”^[22][23]

Educational initiatives[link]

Al-Suwaidan was one of the founders of the American Creativity Academy in Kuwait, a private institution that offers an American college-preparatory education within the context of Islamic values , and was then subsequently pushed out by the majority partners when they discovered his political and ideological motives behind the educational project .^[24][25][26]

He is also one of the founders of AGS (Advanced Generations School) in Saudi Arabia, a "Canadian school with an Islamic identity." Students study English under the Canadian Curriculum, and take Islamic and Arabic classes as well.

Books and audio productions[link]

Al-Suwaidan is the author of thirty best-selling books, his most popular being: Iidad Alkada (make leaders), and spoken word audio tape albums. His album, Qasas al Anbiyaa (Lives of the Prophets) is the highest-selling Islamic album in the world with well over 2 million copies sold. Additionally, over 1.2 million listeners have downloaded his lectures on the popular Islamic broadcast website "Islamway".^[27]

References[link]

1. ^ http://www.alarabiya.net/articles/2008/02/28/46255.html
2. ^ http://www.suwaidan.com/cv.jsp
3. ^ http://www.suwaidan.com/cv.jsp
4. ^ http://www.tbsjournal.com/SuwaidanInterview.html
5. ^ http://www.thedohadebates.com/output/Page29.asp
6. ^ http://www.thedohadebates.com/output/Page29.asp
7. ^ [1]
8. ^ http://www.gulfinnovation.com/index.jsp?inc=2&cid=1&lang=en
9. ^ http://www.suwaidan.com/cv.jsp
10. ^ http://www.tbsjournal.com/SuwaidanInterview.html
11. ^ "Help cure West's ills, Muslims told", Catherine Porter, Toronto Star, Monday, January 6, 2003, Ontario edition, Section: News, p. A08
12. ^ http://www.tbsjournal.com/SuwaidanInterview.html
13. ^ http://acommonword.com/index.php?lang=en&page=faq#link7
14. ^ http://www.tbsjournal.com/SuwaidanInterview.html
15. ^ Al-Suwaidan on Tim Sebastian's the Doha Debates arguing pro the motion 'This House believes that Arab women should have full equality with men'* http://www.thedohadebates.com/output/page30.asp
16. ^ http://www.npr.org/templates/story/story.php?storyId=4679252
17. ^ http://www.tbsjournal.com/SuwaidanInterview.html
18. ^ "Muslims urged to `liberate the Holy Land', Cathleen Falsani, Chicago Sun-Times, November 25, 2000
19. ^ http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/112508dnmetholylandverdicts.1e5022504.html
20. ^ http://www.nefafoundation.org/miscellaneous/HLF/US_v_HLF_Unindicted_Coconspirators.pdf
21. ^ http://www.nysun.com/national/islamic-groups-named-in-hamas-funding-case/55778/
22. ^ http://www.youtube.com/watch?v=Ecews5f7xts
23. ^ http://breakingnews.iol.ie/news/?c=ireland&jp=cweyidqlauey
24. ^ http://www.tbsjournal.com/SuwaidanInterview.html
25. ^ http://www.thedohadebates.com/output/Page29.asp
26. ^ website
27. ^ http://www.islamway.com/?iw_s=Scholar&iw_a=lessons&scholar_id=69

External links[link]

• Dr. Tareq Al-Suwaidan's official website (English) and (Arabic)
• Al-Resalah Satellite TV channel (Arabic)