It stands for above the line; a classification of revenue and expense items that are fully and directly considered in the calculation of an entity’s periodic net income. This in contrast to below the line (BTL) items that impact capital accounts in a direct manner, and net income only in an indirect way.

The “line”, in this context, refers to gross profit. Therefore, above the line implies all items that appear above gross profit, while below the line indicates all items that come under gross profit.