Income Statement Template (Ghana)

An Income Statement Template in Ghana records a formal statement of the particulars it certifies.

The Companies Act, 2019 (Act 992) imposes statutory financial reporting obligations on companies incorporated in Ghana. Section 125 of Act 992 requires every company to prepare financial statements for each financial year, including a statement of financial position (balance sheet) and a statement of profit or loss and other thorough income (income statement). The financial statements must give a true and fair view of the financial position and financial performance of the company. Companies listed on the Ghana Stock Exchange (GSE) must prepare financial statements in compliance with IFRS as adopted in Ghana and file them with the Securities and Exchange Commission (SEC) and the GSE within prescribed timelines.

The Income Tax Act, 2015 (Act 896) uses the income statement as the starting point for computing a company's chargeable income for corporate income tax purposes. The Ghana Revenue Authority (GRA) requires companies to submit annual income tax returns supported by audited financial statements, including an income statement, within four months of the end of the financial year under Act 896. The standard corporate income tax rate in Ghana is 25%, with reduced rates available for companies in certain sectors including manufacturing, agriculture, and tourism.

An Income Statement must be distinguished from a Balance Sheet (Statement of Financial Position), which shows the company's assets, liabilities, and equity at a point in time, and from a Cash Flow Statement, which shows the movement of cash in and out of the business. Together, these three statements form the core financial statements required under both IFRS and the Companies Act, 2019 (Act 992). The Institute of Chartered Accountants, Ghana (ICAG) sets accounting standards and professional requirements for accountants preparing financial statements in Ghana.

The legal and regulatory framework governing financial reporting in Ghana includes the Companies Act, 2019 (Act 992), the Income Tax Act, 2015 (Act 896), the Financial Reporting Act, 2019 (Act 982) which established the Financial Reporting Authority (FRA) as the body responsible for setting and enforcing accounting standards in Ghana, the Securities Industry Act, 2016 (Act 929) for listed companies, and the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) for financial institutions regulated by the Bank of Ghana (BoG). The Institute of Chartered Accountants, Ghana (ICAG) trains and certifies accountants who prepare and audit income statements in Ghana.

An Income Statement is required by Ghanaian companies and businesses in a variety of regulatory, commercial, and financing contexts.

An Income Statement is required when a company incorporated under the Companies Act, 2019 (Act 992) prepares its annual financial statements for filing with the Office of the Registrar of Companies (ORC) and for submission to the Ghana Revenue Authority (GRA) as part of the annual income tax return under the Income Tax Act, 2015 (Act 896).

An Income Statement is needed when a company applies for a bank loan or overdraft facility from a Bank of Ghana-licensed commercial bank. Banks in Ghana — including GCB Bank, Absa Bank Ghana, Ecobank Ghana, Stanbic Bank Ghana, and Fidelity Bank Ghana — routinely require audited or management income statements for the preceding two to three financial years as part of the credit assessment for business lending.

An Income Statement is required when a company applies to the Ghana Investment Promotion Centre (GIPC) under the Ghana Investment Promotion Centre Act, 2013 (Act 865) for registration, a special investment incentive, or an exemption from import duties on capital equipment.

An Income Statement is needed when a company applies for a government contract or public procurement tender under the Public Procurement Act, 2003 (Act 663) as amended by the Public Procurement (Amendment) Act, 2016 (Act 914). Procuring entities routinely require financial statements including an income statement as part of the supplier qualification process.

An Income Statement is required when a company listed or seeking listing on the Ghana Stock Exchange (GSE) prepares its prospectus or annual report for filing with the Securities and Exchange Commission (SEC) under the Securities Industry Act, 2016 (Act 929). GSE listing requirements mandate IFRS-compliant financial statements.

An Income Statement is needed by small and medium enterprises (SMEs) in Ghana when applying for financing from the Ghana Enterprises Agency (GEA), the National Board for Small Scale Industries (NBSSI), or any development finance institution funding SMEs in Ghana. Management accounts including an income statement are typically required even where a formal audit is not yet available.

Forms-legal.com provides this Income Statement Template as a starting point for Ghana financial reporting. All companies should engage a professional accountant certified by the Institute of Chartered Accountants, Ghana (ICAG) to prepare and review financial statements.

A Ghana Income Statement compliant with the Companies Act, 2019 (Act 992), the Income Tax Act, 2015 (Act 896), and International Financial Reporting Standards (IFRS) must contain the following essential elements.

Company Information: The full legal name of the company as registered with the Office of the Registrar of Companies (ORC), the ORC registration number, the company's Ghana Revenue Authority (GRA) taxpayer identification number (TIN), and the financial period covered by the income statement (e.g., Year ended 31 December 2025).

Revenue (Turnover): Total gross revenue earned from the company's principal business activities during the period — for a trading company, this is total sales; for a service company, total fees billed; for a manufacturing company, total production sales. Revenue should be recognised in accordance with IFRS 15 (Revenue from Contracts with Customers) as adopted in Ghana.

Cost of Sales / Cost of Services: The direct costs attributable to producing the goods sold or delivering the services billed, including raw materials, direct labour, and manufacturing overheads for manufacturers, or direct service costs for service companies.

Gross Profit: Revenue minus Cost of Sales, representing the profit earned before operating expenses are deducted.

Operating Expenses: All indirect costs of running the business during the period, classified by nature: employee costs (salaries, SSNIT employer contributions under the National Pensions Act, 2008 - Act 766, PAYE employer obligations under Act 896), depreciation and amortisation, rent and utilities, marketing and advertising, professional fees (legal, audit, and accounting fees paid to ICAG-certified accountants), and other general and administrative expenses.

Operating Profit (EBIT): Gross Profit minus Operating Expenses, representing profit from core business operations before finance costs and taxation.

Finance Costs: Interest payable on loans from Bank of Ghana-licensed banks or other lenders, and other finance charges.

Profit Before Tax (PBT): Operating Profit minus Finance Costs.

Corporate Income Tax Charge: The income tax payable on the company's chargeable income under the Income Tax Act, 2015 (Act 896), calculated at the applicable rate (standard rate 25%). Deferred tax provisions should be included where applicable under IAS 12.

Net Profit (or Net Loss) After Tax: Profit Before Tax minus the Tax Charge — the bottom line of the income statement showing the financial performance of the company for the period.

Signature and Authorisation: The income statement should be approved and signed by a director of the company and, where audited, accompanied by the auditor's report from an external auditor who is a member of the Institute of Chartered Accountants, Ghana (ICAG). Forms-legal.com provides this template as a starting point for Ghana financial reporting documentation.

Additional compliance elements for a Income Statement Template (Ghana) used in Ghana include: Under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930), the Bank of Ghana (BoG) regulates banking. The Securities Industry Act 2016 (Act 929) and Securities and Exchange Commission (SEC Ghana) regulate capital markets. Section 48 of the Bills of Exchange Act 1961 (Act 55) governs promissory notes. The Ghana Revenue Authority (GRA) administers tax obligations. The National Insurance Commission (NIC) regulates insurance. Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.