Statement of property income

If the enterprise has real estate investment, it adopts the fair value model. If the fair value of the investment rises, the rising amount needs to be included in the fair value change profit and loss account, which will eventually affect the current profit and loss and increase the net profit.

Generally speaking, the price of your investment in the market has increased, so it is equivalent to making money. Of course, the premise is to use the fair value model to measure.

The gross profit you mentioned is the sales revenue excluding tax-the sales cost excluding tax, and the net profit is to increase or deduct the current profit and loss except gross profit on the basis of gross profit (in fact, this is not accurate, because gross profit is not an accounting term, so gross profit = operating income-operating cost), so the decrease of gross profit does not conflict with the increase of net profit.

I suggest you take a look at the following income statement, which will be easier to understand. The gross profit you mentioned is the result of the first two lines, and the following series affect the total net profit. The increase of fair value profit of investment real estate such as hotels (in fact, it should be an increase here) is the change income of fair value.

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