Seán Fleming (Laois, Fianna Fail) | Oireachtas source

In other words, the accounts will include charges for depreciation on assets that will create a loss but depreciation is not a cash outflow. Therefore, even though the profit and loss account may show a loss due to charges like that, there could still be cash in the bank. Just because there is a trading loss does not mean that an entity will be in overdraft.