Definition
A report of an HOA's income and expenses over a period, showing whether it operated at a surplus or deficit.
The income statement (or statement of income and expense) shows the association's revenue and expenses over a period — a month, quarter, or year — and whether it ended in a surplus or deficit.
Comparing actual income and expenses against the budget on this statement is how boards catch overruns early and understand where the money is going. Along with the balance sheet, it's essential monthly reading for the board.