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Is other income included in gross profit or not?

Would like to know whether to add other income with your Revenue while calculating Gross Profit or should be less after all expenses recorded ?

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Question added by Murtuza Lalbaugwala , Associate Auditor
Date Posted: 2013/08/24
Jameel Yousaf
by Jameel Yousaf , Supervisor , Nasir Javaid MAqsood Imran Chartered Accountants

Gross Profit is calculated by subtracting "Cost of Sale" from net Revenue.
Other Income is added in GP and Expenses are subtracted to calculate "Profit before tax"

Khaled Abdelrehim ACCA DipIFR CMA
by Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

not included

ahmed nabil
by ahmed nabil , Lecturer in the special status , Registration books

after all expenses recorded

Ravi Chhantel
by Ravi Chhantel , Assistant Finance Manager , Tiger Palace Resort

No.

Gross profit is only determined by operating income.

Ayaz  Ali
by Ayaz Ali , Financial Controller , Gul Ahmed Electric Limited

As answered by some friends "Other Income" is not included in GP.
Concept of other Income is "  Income earned from other than normal business transactions, mostly its disposal of fixed assets and Interest Income". 

Noufal Areettakkunnummel
by Noufal Areettakkunnummel , Senior audit Assistan , Lulu Saudi Hypermarkets LLLC

other income is not included in gross profit.it is only effected in net profit..grsoo profit is the income only derived from the sale proeedure that means GP =( net sales + closing stock) - ( openingstock + purchases )

Muhammad Waqas
by Muhammad Waqas , Accountant , Rafiq & Sons

Well other incomes are treated after calculating Gross profit.
Because gross profit is claculted Revenues - cost of goods sold= Gross profit. 
other operating expenses and incomes from other sources are treated in net income portion.
Gross profit+other incomes - other expenses( operating, marketing etc) =  income before taxes Inome before taxes - taxes = net income

Mohammed  Mohammed
by Mohammed Mohammed , Senior SAP Consultant , Abyat Mega Store

Gross profit is purely from operating activities of the concern.Non-operating can't be included in Gross profit.

Moses Ajayi Murorun
by Moses Ajayi Murorun , Production Executives , Various Organizations

No other Income is not included in gross profit Example of other income is dispossal of Fixed Assets which wil not form part of gross profit calculation

Maher Elyian
by Maher Elyian , Accounting Section-Head , MAC International FZCO

Other income is two types , other operating income & non-operating income , in internal reports both are not included in GP , externally the operating profit should be deducted from cost of sales ,but non-operating income should be in a separate line after fixed costs & financial costs.

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