The purchase of equipment that will be used in a business is not reported on the profit and loss statement. However, the depreciation of the equipment will be reported as depreciation expense on the profit and loss statements during the years that the equipment is used.
For example, if a company buys equipment for $100,000 and it is expected to be used for 10 years, the company's profit and loss statements will report depreciation expense of $10,000 in each of the 10 years (assuming the straight-line method of depreciation is used).
The purchase of equipment is shown on the statement of cash flows for the period in which the purchase took place. The equipment will also be reported on the company's balance sheets at its cost minus its accumulated depreciation.
The profit and loss statements are also known as income statements, statements of operations, and statements of earnings.
So if you are a photographer, and you buy film, would that be considered equipment? Although it is used in your equipment it is not considered an asset and is not depreciated over time. If it were old fashioned film that needs developing, it can be considered a cost of goods to support the sales from the exposed films. If it were a digital item that can be used over and over and under $200 it can be expensed on the profit and loss statement.