The Gewinn- und Verlustrechnung (GuV), or Profit and Loss Statement, is a core component of the annual financial statements (Jahresabschluss) required for businesses that use double-entry bookkeeping.
The GuV compares all revenues and expenses over a financial year and determines whether a company has made a profit or incurred a loss. It provides a detailed view of a company’s financial performance and is typically submitted alongside a balance sheet.
Together with the balance sheet, the GuV forms the Jahresabschluss, which is typically translated as “annual accounts”. It is mandatory for larger businesses or companies, such as GmbH or AG.
