Define: Realised Profit

UK Accounting Glossary

Definition: Realised Profit


Quick Summary of Realised Profit


A profit arising from revenue which has been earned by the entity and for which there is a reasonable prospect of cash being collected in the near future.



Advertisement



Full Definition of Realised Profit


A profit that has been incurred in an investment but that hasn’t been realised yet because the investment hasn’t been sold, which would make it realised. Also called a paper profit.


Advertisement



Realised Profit FAQ's


How do you calculate realised profit and loss?

The amount realised is used to calculate realised gains and losses. To calculate a realised gain or loss, simply take the difference of the total consideration given and subtract the cost basis. If the difference is positive, it is a realised gain. If the difference is negative, then its a realised loss.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/realised-profit/
Modern Language Association (MLA):
Realised Profit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. January 21, 2020 https://payrollheaven.com/define/realised-profit/.
Chicago Manual of Style (CMS):
Realised Profit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/realised-profit/ (accessed: January 21, 2020).
American Psychological Association (APA):
Realised Profit. PayrollHeaven.com. Retrieved January 21, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/realised-profit/

Definition Sources


Definitions for Realised Profit are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.