What does it mean?
An income statement summarizes recognized income and expenses over a period. An association may call it an income-and-expense statement or a statement of revenues and expenses. Its results depend on the accounting basis, so the reported surplus or deficit is not necessarily the change in bank cash.
Related names and search phrases: income and expense statement, statement of revenues and expenses. Usage can vary.
ILLUSTRATIVE COMMUNITY EXAMPLE
What it can look like
A board reviews the first quarter’s assessment income and maintenance expenses against budget. It then checks unpaid bills and collections separately to understand why cash changed by a different amount.
Why your board should care
Comparing actual results with the plan can reveal cost changes or collection issues early.
Keep the distinction clear
Do not assume a reported surplus means every dollar is unrestricted or available for a new project.
Sources & scope
Sources consulted . These references support the explanation’s background; the examples and board questions are original editorial illustrations.
- SEC: Beginners’ Guide to Financial Statements ↗
General financial statement concepts. Association fund presentation can differ from business examples.
- IRS Publication 538: Accounting Periods and Methods ↗
January 2022 publication available at research time. General accounting timing; tax method eligibility requires professional review.
General educational explanations for HOA, POA, and condominium boards. Terms and procedures vary by state and governing documents. Examples are fictional. For a specific legal, tax, accounting, or property decision, consult a qualified adviser.
Prepared with AI assistance and source checking. Not represented as an attorney or accountant review.