Definition of 'P&L effect'?

[Torsten]

Hi, I've tried to come up with a simple definition of the term P&L effect and to my surprise Google has been very helpful so far. I'm sure you can shed some light on P&L? Here is the context I've come across it:

"Financial intruments used for hedging, as strictly defined in the standard, are exempt from a P&L effect under normal circumstances."

Thanks in advance,
Torsten
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Test Of English for International Communication
TOEIC Preparation & TOEIC Vocabulary

[Yankee]

Hi Torsten

I'm no financial wizard, but for me it seems pretty straightforward: a "P&L effect" is just an effect or influence on the company's Profit and Loss statement.

But maybe somebody else has an idea...

Amy
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Amy
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ESL teacher, translator, and a native speaker of American English