US GAAP Groups · Track 1 · Tutorial 2 of 2

Classify profit and loss and cash flow lines

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The US GAAP profit and loss breaks operating expenses down into selling, general and administrative, and research and development, and the US GAAP cash flow statement shows each investing and financing flow. Both read those lines from the accounts you classify.

You will needUS GAAP switched on and equity classified, as in Switch on US GAAP and classify equity. Data administrator access in BrizoConsol.

By the endYour Group’s operating expenses broken down into selling and general and administrative, and its investing and financing cash flows on their US GAAP lines.

1Know how the lines are filled

Profit and loss	Operating Expenses is every account in the expense and depreciation sections. Under it, Selling Expenses, General and Administrative Expenses and Research and Development show the accounts you classify. There is no line for the rest, so classify every expense account if the breakdown is to add up to the total.
Cash flow	Each investing and financing line is the year’s movement on the accounts you classify. Operating activities are worked out from net income, depreciation and working capital; interest paid and received stay in net income, in operating activities, as ASC 230 requires.
What isn’t classified	The statement still ends at the bank balance. A movement that isn’t on any line shows in Effect of Exchange Rate on Cash, which is the difference between the cash movement and the three sections.

Your Group’s US GAAP profit and loss for 2026: before classifying, Selling Expenses and General and Administrative Expenses are 0 under Operating Expenses of 1,240,000; after, they are 310,000 and 930,000, with Operating Income 1,240,000 both times — The same operating expenses, broken down.

2Classify the profit and loss lines

Select Your Group, and open Settings → Organisation Settings → Accounting Standard.
Under Account Classifications, choose P&L in the Type column.
On Selling Expenses, click Select accounts. In Select P&L Accounts, tick 6100 Selling & Marketing and 6150 Delivery Costs, and click Apply.
On General and Administrative Expenses, select 6300 Office Rent, 6400 Admin Salaries and 6500 Professional Fees, and every other expense and depreciation account, such as 6800 Depreciation.

Which accounts	Expense and depreciation accounts only. A cost of goods sold account classified here would show under Operating Expenses as well as in Cost of Goods Sold.
Research and Development	Leave it empty if the group has none, as Your Group does.
Equity in Earnings of Associates	The account your share of an associate’s profit is posted to, such as 4130 Share of Profit of Associates. It isn’t a line of its own on the profit and loss — the share of profit is in Other Non-Operating Items — but the cash flow statement uses it to take that non-cash income out of operating activities. An account created with the name Share of Profit of Associates usually comes already classified; check it is here.

3Classify the cash flow lines

Choose CF in the Type column. The lines are grouped into Operating, Investing and Financing activities.
On each line your group uses, click Select accounts, tick the account in Select Cash Flow Accounts, and click Apply.
Click Save Changes.

The operating lines (1) and the financing lines (2); lines the group doesn’t use stay empty.

Choose the account whose movement over the year is that cash flow:

Line	Your Group’s account
Gain/Loss on Sale of Assets	4900 Gain on Disposal of Assets. The gain is taken out of operating activities because it isn’t cash; the cash is in Proceeds from Sale of Assets.
Interest Paid	7100 Interest Expense. It feeds the Note: Interest paid - Operating line under the statement; the interest itself is already in operating activities, through net income.
Capital Expenditures	1600 Plant & Equipment, the cost account. Its increase is the year’s purchases when nothing was sold.
Proceeds from Long-term Debt	2600 Bank Loan.
Proceeds from Issuance of Common Stock	3000 Share Capital, for shares issued during the year. It also fills the Issue of Shares row of the statement of changes in equity.

The other lines take the same approach: Deferred Income Taxes for the deferred tax account; Proceeds from Sale of Assets, Purchase of Intangible Assets and Proceeds from Sale of Intangible Assets for asset accounts; Acquisitions, Net of Cash Acquired and Divestitures, Net of Cash Disposed for subsidiaries bought and sold; Repayment of Long-term Debt, Principal Payments on Finance Leases, Dividends Paid and Payments to Non-Controlling Interests for financing. The cash paid for an associate and the dividends received from it come from BrizoConsol’s own associate entries, so they need no classification.

A cash flow line is a second classification: an account can be on one Equity or P&L line and also on one CF line. That is why 3000 Share Capital keeps its Common Stock line on the Equity tab and also goes on Proceeds from Issuance of Common Stock. Putting an account on two CF lines, or on two Equity or P&L lines, gives The same account cannot be used for multiple classifications within the same standard. when you save.

4Check the statements

Open Reports → All Reports → Consolidated Statements of Operations for 2026.
Open Consolidated Statements of Cash Flows for 2026, and look at the bottom of it.

Check

On the profit and loss, Selling Expenses is 310,000 and General and Administrative Expenses 930,000, adding up to Operating Expenses of 1,240,000, and Operating Income is unchanged. On the cash flow, Effect of Exchange Rate on Cash is down to -3,250, a size that fits Company B’s and Company C’s cash being translated, and Cash and Cash Equivalents at End of Period is 1,402,350, the bank balance.

5If something goes wrong

Effect of Exchange Rate on Cash is still large	A movement isn’t on any line — often a new loan, a share issue, or an asset bought into an account that isn’t classified. Find the account that moved and put it on its line.
Selling, G&A and R&D don’t add up to Operating Expenses	Some expense or depreciation accounts aren’t classified. Put each on one of the three lines.
They add up to more than Operating Expenses	A line has an account that isn’t an expense, such as a cost of goods sold account. Move it off.
The same account cannot be used for multiple classifications within the same standard.	One account is on two CF lines, or on two Equity or P&L lines. Keep it on one of each.
[Account] is an equity account, so it cannot be assigned to a P&L classification.	The account was changed to an equity account while this page was open. Reload the page: the account is no longer on the P&L line, and the save goes through.

Want more detail? See the documentation

Accounting Standards Customise Cash Flow

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