Ordinary Profit

Japanese: 経常利益

・pretax profit/current profit
・Ordinary profit = Operating profit + Non-operating income - Non-operating expenses・Ordinary profit is the profit and loss calculation result obtained by adding "non-operating income," which is income from a source other than the main business, such as interest received, dividends received, and purchase discounts, to operating profit and subtracting "non-operating expenses," such as interest paid, discounts, and interest on corporate bonds.
・Because the revenues and expenses arising from a company's financial activities are likely to occur on an ongoing basis, they can be seen as an indicator of a company's overall profitability. In addition, operating profits are sometimes used as a performance indicator when calculating bonus funds for personnel-related matters.
・The advantage of using it is that it is possible to strengthen awareness of the results of corporate activities. On the other hand, the disadvantage is that for personnel outside the management department, it may be difficult to be convinced because it also includes the results of the company's financial activities.
・Furthermore, income statements under US GAAP do not have the ordinary income/loss category that is used under Japanese GAAP. Items that are classified as non-operating expenses and extraordinary losses under Japanese GAAP, but are business-related, are recorded as operating expenses. Therefore, "ordinary income" under Japanese GAAP, which includes income/expenses such as gains on sales of fixed assets recorded under extraordinary income/loss, can be considered close to "profit before tax" under US GAAP.

Source: Active & Company, Inc. Human Resource Management Glossary Information

Japanese:

・pretax profit/current profit
・経常利益=営業利益+営業外収益-営業外費用
・経常利益とは損益計算上において、営業利益から、受取利息、受取配当金、仕入割引などの本業以外の稼ぎである「営業外収益」を加え、支払利息、割引料、社債利息
などの「営業外費用」を差し引いたものを指す。
・企業の財務活動から生じる収益と費用は経常的に発生する可能性があるため、企業の総合的な収益力を示す指標として捉えられる。また、経常利益は人事関連において賞与原資を算出する際の業績指標として活用されることがある。
・活用するメリットは、企業活動における成果に対する意識付けを強化することが可能であること。一方、デメリットは、管理部門以外の人材にとっては、会社の財務活
動の成果も含まれるために納得感が低い恐れがあること等が挙げられる。
・尚、米国会計基準での損益計算書には、日本会計基準での経常損益区分はない。日本会計基準で営業外費用、特別損失に区分される項目のうち、事業に関するものは、営業費用に計上される。従って、特別損益に計上する固定資産の売却益などの収支を加減した日本基準の「経常利益」は、米国基準の「税引き前利益」に近いものとして捉えられる。

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