Definition of 'P&L effect'?

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,

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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…