Financial results. Course work: Financial results of the enterprise. Types of financial results of the enterprise

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The financial results of the enterprise are assessed using absolute and relative indicators.

The absolute indicators include:

-profit (loss) from the sale of products (works, services);
- profit (loss) from other sales; -

income and expenses from non-operating transactions;

-balance sheet (gross) profit;
-net profit.

First, let's name the main financial results, determined by absolute values. Sales proceeds (gross income) - the overall financial result from the sale of products (works, services). According to Russian regulations, it includes:

- proceeds (income) from the sale of finished products, semi-finished products of our own production;
- works and services;
- construction, research work;
- goods purchased for subsequent sale;
- services for the transportation of goods and passengers at transport enterprises, etc.

What is needed is a simple tool that allows you to focus on the most important areas of the enterprise and compare the performance of different enterprises. One such tool is financial ratio analysis, which uses the calculation of financial ratios as a starting point for interpreting financial statements.

The coefficient is the ratio of one indicator to another. The analysis of financial ratios is used to control the economic activities of the enterprise and to identify the strengths and weaknesses of the enterprise relative to competitors, as well as when planning the activities of the enterprise for the future.

The calculation of financial ratios focuses mainly on three key business areas:

profitability (managing the buying and selling process);

resource use (asset management);

investor income.

Financial result - in the balance sheet, the financial result of the reporting period is reflected as retained earnings (uncovered loss), i.e. the final financial result revealed for the reporting period, less taxes due from profits established in accordance with the legislation of the Russian Federation and other similar obligatory payments, including sanctions for non-compliance with tax rules.

The financial result can be profitable and unprofitable.

Profit is the monetary value of money savings created by enterprises.

As an economic category, it characterizes the financial result of entrepreneurial activities of enterprises. Profit is an indicator that most fully reflects the efficiency of production, the volume and quality of products, the state of labor productivity, the level of cost. At the same time, profit has a stimulating effect on strengthening commercial accounting and intensifying production.

Profit - one of the main financial indicators of the plan and the assessment of the economic activities of the company. At the expense of the profit, financing of measures for scientific, technical and socio-economic development, an increase in the wage fund is carried out.

Profit is not only a source of meeting the on-farm needs of enterprises, but is becoming increasingly important in the formation of budgetary resources, off-budget and charitable funds.

Loss - damage expressed in monetary form that is caused to one person by the unlawful actions of another.

A loss is understood, firstly, the expenses incurred by the creditor, secondly, the loss or damage to his property and, thirdly, the income that he would have received if the obligation had been properly performed by the debtor (unearned profit). As a general rule, the debtor is obliged to fully compensate the creditor for the losses incurred. For certain types of obligations, legislation may limit the liability of the debtor.

The production result exists in terms of products and services.

The product has a real form, and the service does not have a real form.

UDC 372.881.1

CONCEPT, ESSENCE AND SIGNIFICANCE OF THE FINANCIAL RESULTS OF THE ENTERPRISE

I. A. Lysov, Economist, Retail Trade LLC, Togliatti (Russia)

Annotation. The concept, essence and significance of the financial results of an enterprise are relevant for any enterprise, regardless of whether it is large or small. The financial result of the economic activity of the enterprise is determined by the indicator of profits and losses formed during the reporting year. Consideration of the role and significance of financial results, concepts and essence is offered.

Key words: financial result of an enterprise, profit, loss, revenue, goods, product.

Leading economists in the field of economic analysis and financial management pay a lot of attention in their research to the study of the financial results of the economic activity of an enterprise, however, they approach the definition of the economic content of this concept in various aspects and with varying degrees of detail. OV Efimova, understanding the financial result of the enterprise as profit, at the same time notes that “the final result is the one that the owners have the right to dispose of”, and in world practice it means “the increase in net assets”.

G. V. Savitskaya notes that "the financial results of the enterprise are characterized by the sum of the profit and the level of profitability": "profit is a part of the net income, which is directly received by business entities after the sale of products."

I. A. Blank, analyzing the financial mechanisms for managing the formation of operating profit, characterizes the balance sheet (total) profit as "one of the most important results of the financial activity of the enterprise."

This is the sum of the following types of enterprise profits: profit from the sale of products (or operating profit), profit from the sale of property and profit from non-sales operations with the main role of operating profit, which currently accounts for approximately “90-95% of the total profit”.

V.V.Bocharov examines the procedure for the formation of the financial results of the enterprise (profit), systematizing the items included in the income statement and showing the formation of profit from gross to retained (net) profit (uncovered loss) of the reporting period.

Now we will try to summarize all these concepts and give a general definition of financial performance.

there. Financial result is a generalizing indicator of analysis and assessment of the effectiveness (inefficiency) of the activity of an economic entity at certain stages (stages) of its formation.

The financial result of the organization's activities serves as a kind of indicator of the importance of this organization in the national economy. In a market economy, any organization is interested in obtaining a positive result from its activities, since, thanks to the value of this indicator, it is able to expand its capacity, materially motivate the personnel working for this organization, pay dividends to shareholders, etc.

From the point of view of accounting, the final financial result of the enterprise is expressed in the indicator of profit or loss formed on the Profit and Loss account and reflected in the financial statements.

The total financial result of the company's activities, accounting profit or loss, is the sum of the result (profit or loss) from the sale of products, goods (works, services), the result (profit or loss) from financial activities (interest received and paid), operating activities (income and expenses), income and expenses from other non-operating transactions.

For any enterprise, obtaining a financial result means recognition by the society (market) of the results of its activities or obtaining results from the sale of a product produced at the enterprise in the form of products, works or services. Then the final financial result for the enterprise will be the balance of the result from the sale and the costs incurred by him to obtain it. For the state, the final financial result of a commercial enterprise is

tia will be the tax contained in its composition.

For the owner, the investor, the final financial result is a part of the profit after tax distributed in his favor. The remaining profit after its taxation and payment of dividends to owners, interest to creditors is the net final financial result of the enterprise for its production and social development.

The financial result of the main activity (from sales) is the proceeds from sales, for most of the enterprises operating in the Russian economy, it is reflected on an accrual basis (based on data on shipped products). To judge what the final financial result was obtained based on the results of sales, you can only clear it from the indirect taxes and costs owed to the state.

The excess of revenue over tax expenses and the costs that form it, will give a positive result, called profit from sales. The opposite situation will show a loss from sales. Thus, the final financial result from sales is the profit or loss received on the basis of sales income, reduced by the amount of tax expenses and expenses for the production of products (performance of work, provision of services).

The final financial result from the ordinary activities of the enterprise is called profit (loss) from ordinary activities and is the total result of its main and other activities.

The final financial result from ordinary activities, increased or decreased by the balance of extraordinary income and expenses, which are of an accidental nature and occur quite rarely, forms retained earnings (uncovered loss). Revealing the amount of retained earnings (uncovered loss) ends the financial year of the enterprise.

Thus, examining the structure of the "Financial Results" section of the chart of accounts and the profit and loss statement, we can draw the following conclusions:

Financial results is a systemic concept that reflects the joint result from the production and commercial activities of an enterprise in the form of sales proceeds, as well as the final result of financial activities in the form of profit and net profit;

The final financial result is understood as the difference between income and expenses in the context of various types and activities of the enterprise as a whole;

The net final financial result is the final financial result, cleared of various exemptions in favor of both the budget (income tax) and owners (dividends).

So, we figured out the concept of financial results and found out that one of the financial results is the company's profit.

Profit is the final financial result of the economic activity of the enterprise. However, the financial result can be not only profit, but also a loss that has arisen, for example, due to excessively high costs or a shortfall in income from the sale of goods due to a decrease in the volume of supplies of goods, a decrease in consumer demand.

In the process of analyzing the results of the trading enterprise, various profit values are applied: profit (loss) from the sale of goods; profit from the sale of fixed assets and other property; gross (balance sheet) profit; net profit (profit remaining at the disposal of the enterprise); taxable profit; profit from other activities of the enterprise. Differences in the concepts of profit are determined by their economic content and the provisions of the legislation on taxation of corporate profits.

However, it is necessary to emphasize the inconsistency of profit as a generalizing indicator of activity. Both domestic and foreign practice shows that profit growth can be not only a consequence of effective economic activity. It can be achieved, for example, due to the monopoly position of the manufacturer.

The efficiency of economic activity is expressed by the economic category of profitability. In general, profitability acts as profitability, profitability. That is, making a profit allows us to talk about the effectiveness of the organization and implementation of economic activities. However, the mass of profits does not yet allow us to sufficiently assess how effectively the activities of the enterprise are carried out. For such an assessment, the relative indicators of profitability are used as the ratio of the profit received to the funds advanced and spent on the production of products.

An interest in the growth of profits means, therefore, an interest in the integrated use of all directions and methods of improving the results of economic activity, reducing production costs, saving living and materialized labor, in a more complete mobilization of internal reserves. In addition, it is interested not only in the production of products with the lowest possible individual costs, but in those products that satisfy the needs of society in it, are in demand. That is, the more effective economic activity, the greater is the profit and, therefore, the more funds can be used to finance expanded reproduction, social development and material incentives for participants in economic activity.

The mechanism of profit formation is one of the components of the economic mechanism operating in society at a certain historical stage of its development. The economic mechanism determines the conditions for the functioning of economic entities in society and, thus, the conditions and general procedure for the formation of the financial results of their activities.

Thus, the concept of profit as a financial result of activity expresses a certain form of implementation of economic relations regarding the formation, distribution and use in monetary form of a part of the value of the surplus product, which developed at a certain stage of the development of society, in a certain economic system and implemented through the economic mechanism created in it.

This approach makes it possible to distinguish between the concepts of profit as an economic category and as a financial result of the activity of an economic entity.

From the point of view of management and, first of all, the function of analyzing financial and economic activities, such a delineation of concepts makes it possible to clearly represent not only the objective foundations of the flow of profit formation processes, but also the specific form of their organization. It becomes possible not only to determine the factors that influence the process of formation of financial results, but also the boundaries of their controllability, allows us to distinguish among them those that are dependent and not dependent on the economic entity, production and non-production, etc. From the understanding of financial results as a dynamic phenomenon, depending on the economic mechanism, it follows

the practical need to take into account the changing methods of determining profit, to ensure the comparability of financial results in different periods of time.

Profit as a financial result appears in the following main forms: gross, taxable and net profit.

The formation of financial results is understood as a certain sequence (algorithm, methodology), the ultimate goal of which is to determine the value of the indicator of balance sheet (gross) profit (loss) and its derivatives (taxable, net and retained earnings, uncovered loss).

Profit as an economic category reflects the net income created in the sphere of material production in the process of entrepreneurial activity. The result of the combination of factors of production (labor, capital, natural resources) and the useful productive activity of economic entities is a finished product, which becomes a commodity, provided it is sold to the consumer.

At the stage of sale, the value of the commodity is revealed, including the value of past materialized labor and living labor. The value of living labor reflects the newly created value and falls into two parts. The first is the wages of workers involved in the production of products. Its value is determined by a number of factors due to the need for the reproduction of labor. In this sense, for the entrepreneur, it represents part of the cost of production. The second part of the newly created value reflects the net income that is realized only as a result of the sale of products, which means public recognition of its usefulness.

At the enterprise level, in terms of commodity-money relations, net income takes the form of profit. In the market of goods, enterprises act as relatively separate producers. Having established a price for a product, they sell it to the consumer, while receiving cash receipts, which does not mean making a profit. To identify the financial result, it is necessary to compare the proceeds with the costs of production and sale, which take the form of the cost of production. When the revenue exceeds the cost price, the financial result indicates the receipt of profit.

An entrepreneur always sets profit as his goal, but not always gets it. If the proceeds

is equal to the cost, it was only possible to reimburse the costs of production and sales of products. When sold without losses, there is no profit as a source of production, scientific, technical and social development. When costs exceed revenues, the company receives losses - a negative financial result, which puts it in a rather difficult financial position, which does not exclude bankruptcy.

The value of profit is that it reflects the final financial result. At the same time, the amount of profit and its dynamics are influenced by factors both dependent and not dependent on the efforts of the enterprise. Practically outside the sphere of influence of the enterprise are the market conditions, the level of prices for consumed material and raw materials and fuel and energy resources, the norms of depreciation deductions. To a certain extent, such factors as the level of prices for products sold and wages, the level of management, the competence of management and managers, the competitiveness of products, the organization of production and labor, its productivity, the state and efficiency of production and financial planning, depend on the enterprise.

The listed factors affect profit not directly, but through the volume of products sold and the cost, therefore, to find out the final financial result, it is necessary to compare the cost of the volume of products sold and the cost of costs and resources used in production.

Let's name the conditions for profit growth in trade: expansion of the range of goods; introduction of commercial innovations in order to increase the volume of sales of new goods in high demand; lack of fear of commercial risk; prudent use of funds derived from cost savings.

At the same time, it is necessary to choose a strategy of commercial activity: either reduce the price of goods in accordance with a decrease in demand for available goods in the expectation that this will lead to an increase in sales and may increase profits, or not change the price, focusing on maintaining the stability of moderate demand ... By choosing the first option of the strategy, it is possible, in addition, to achieve an acceleration of the turnover of funds (own working capital). According to the second option, it is possible to freeze equity capital for a while, as a result, it may become necessary to attract

capital, which will require additional financial costs to pay interest on loans and advances.

Profit and loss represent the difference between the preliminary estimate of costs and revenues and the actual costs incurred and revenues received. Moreover, this difference may be a consequence of the choice of the strategy of commercial activity.

It is not enough just to cover production costs with sales proceeds; you also need to make a profit. The essence of profit is most fully expressed in its functions. In the domestic literature there is no consensus on the question of the functions of profit; in different sources, there are from two to six functions. Most economists identify three functions that are most consistent with the nature of profit. These are the functions of a generalizing performance indicator, reproductive and stimulating functions. In addition, profit acts as a source of remuneration for the owners of shares, units in the authorized capital of the enterprise; serves as a source of replenishment of the state budget.

In accordance with the first function, profit characterizes the result of the activity of an economic entity. Profit is the result of its activities, which depends on the level of cost, quality and quantity of products, labor productivity, the degree of use of production assets, management organization, material and technical supply and other income, and most importantly, on how these products satisfy the needs of the consumer. , that is, whether it is in demand. The amount of profit is formed under the influence of many factors and reflects almost all aspects of the activity of an economic entity.

Along with the valuation function, profit serves as an incentive. The stimulating function of profit is manifested not only in the direction of part of it for economic stimulation, but is associated with the entire process of formation, distribution and use of profit. In this case, profit serves as a "knot" for the interconnection of the interests of society, organization and individual employees.

Another function of profit is the reproduction function, in which it acts as one of the main sources of resources for expanded reproduction. Disclosure of the economic nature of profit, objective general economic laws and prerequisites for its formation and

existence is necessary, but not sufficient for understanding the mechanism of formation of corporate profits in modern conditions.

Profit is understood as the result of a firm (company, corporation). For all enterprises, profit maximization is a prerequisite: profit is maximum when marginal revenue is equal to marginal cost. The rule of profit maximization is to select such a volume of production and sale of goods so that its price is equal to long-term marginal costs. As you know, the costs of the company are divided into fixed and variable. Marginal costs are additional variable costs associated with each additional unit of output, sales of products.

Enterprises, as a rule, solve the problem of maximizing profits for the long term. Those of them who are not closely involved in maximizing profits have little chance of survival. Firms that survive in a competitive environment give long-term profit maximization a high priority.

Enterprises with a significant amount of equity capital can receive additional income in the form of interest on equity. In this case, taxable profit is increased by the amount of interest received on equity, which is reflected in the income statement. In foreign practice, the term "costs of lost opportunities", "lost (lost) profit (benefits)" is used. The costs of lost opportunities are understood as the costs and loss of income that arise due to the giving of preference in the presence of a choice of one of the methods of carrying out business transactions while refusing from another possible method. In the academic literature on market economics and entrepreneurship, they are called implicit or implicit costs. Together with the obvious costs that are reflected in accounting, they form economic

costs. Accordingly, costs and profits are called accounting and economic.

BIBLIOGRAPHY

1. Balabanov I. T. Analysis and planning of finance of an economic entity. M.: Finance and Statistics, 2009.243 p.

2. Kurilova AA, Kurilov K. Yu. Hedging of currency and commodity risks with the use of options by enterprises of the automotive industry // Audit and financial analysis. 2011. No. 2. S. 132-137.

3. Kurilova AA, Kurilov K. Yu. Financial mechanism of cost management based on the method of internal audit // Bulletin of the Volga University. V.N. Tatishcheva. 2010. No. 20. S. 74-80.

4. Velikaya EG, Churko VV Strategic potential and profitability of the organization // Science Vector of Togliatti State University. Series: Economics and Management. 2014. No. 2 (17). S. 7-9.

5. Nikiforova EV, Schneider OV Economic potential as a set of resources of financial and economic activity // Azimuth of scientific research: economics and management. 2013. No. 1. S. 20-22.

6. Velikaya EG, Churko VV Indicators for assessing the effectiveness of an organization // Baltic Humanitarian Journal. 2014. No. 2. S. 57-61.

7. Kurilov K. Yu., Kurilova AA Formation of the internal audit system taking into account the factors of influence of cyclicality // Vector of Science of Togliatti State University. Series: Economics and Management. 2012. No. 4 (11). S. 111-114.

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9. Chinakhova SE Assessment of the effectiveness of the application of various taxation systems on the example of a commercial organization // Karelian scientific journal. 2014. No. 3. S. 107-110.

THE CONCEPT OF THE ESSENCE AND VALUE OF THE FINANCIAL RESULTS OF THE ENTERPRISE

I. A. Lysov, Ltd. Retail-treyd, economist, Togliatti (Russia)

Annotation. The concept of the essence and value of the financial results of the company relevant to any enterprise, regardless of whether large or small. The financial result of the economic activity of the enterprise is determined by the rate of profits and losses generated during the reporting year. Invited review the role and importance of financial results, the concept and essence.

Keywords: financial result of the enterprise, profit, loss, revenue, product, product.

Accounting for financial results is necessary to assess the economic life of the enterprise. With the help of these indicators, it is possible to analyze the efficiency of the enterprise as a whole and develop a further strategy of behavior in the market, therefore, the correct accounting of financial results is very important from the point of view of the economy.

What is the financial result

The financial result is the economic result of the organization's economic life, which is expressed in the form of profit or loss. Profit is the amount by which the revenue received exceeds the expenses incurred. Simply put, when the company remains in the black. In the case when the organization incurred more expenses than it earned from its activities, they talk about the resulting loss. Financial performance information is important not only for internal control and management, but also for external parties interested in this kind of information. These include banking organizations that issue borrowed resources for the use of the company at a certain interest rate, insurance companies, property insurance organizations, investors making investments in the development of the company, and others.

Profit is a relative measure of a company's performance. In general, it symbolizes the positive result of the enterprise. But according to the analysis of profit, other conclusions can be drawn. For example, after conducting a comparative analysis of profit over several years, a specialist can conclude about an increase or decrease in its value and about an increase or decrease in the efficiency of the company.

The resulting loss signals the company's management about the ineffectiveness of commercial activities and the need to take measures to increase the company's profitability.

For effective analysis, it is important to organize timely and accurate accounting of the financial results of the organization.

Financial result from ordinary activities in accounting

The types of activities that are enshrined in the constituent documents can be classified as ordinary. For accounting of financial results, account 90 is intended. It is more convenient to keep "ordinary" income and expenses on sub-accounts opened to it:

1 - "Revenue".
2 - "Cost of sales".
3 - "VAT" (on sales or "outgoing" VAT).
4 - "Excise".
9 - "Profit / loss from sales". It is on this subaccount that the final result of accounting for financial results is reduced.

Accounting for financial results from the ordinary activities of the organization can be represented by the following accounting entries:

Dt 62 Kt 90.1 - accrued proceeds from sales;
Dt 90.3 Kt 68 - VAT charged;
Dt 90.2 Kt 20 (41, 43, 44) - reflects the cost of products, works or services.

How to determine whether the company has made a profit or loss? To do this, you need to compare the total turnover on the debit of accounts 90.2, 90.3, 90.4 with the turnover on credit 90.1. If the credit of account 90.1 is more than the turnover on debit, then the company can reflect the profit: Dt 90.9 Kt 99. If the result is the opposite, then they say about the loss received: Dt 99 Kt 90.9. Note that at the end of the reporting period, there should be no balance on account 90.

Accounting for financial results from other activities of the organization

If income and expenses cannot be attributed to ordinary activities, then in this case the concept of "Other activities" is provided for them. The list of other income consists of:

income from the provision of property for rent;
financial benefits for securities and other investments;
proceeds from the sale of own assets (for example, fixed assets, intangible assets);
gratuitous economic benefits;
due fines, penalties and penalties, as well as compensation for damage caused;
positive exchange rate differences;
written off accounts payable after the expiration of the limitation period;
inventory surplus, etc.

The list of other expenses is similar to income:

cost and costs attributable to the sale of assets;
VAT on sales transactions;
compensation for damage to third-party contractors;
fines, penalties and forfeits intended to be paid;
credit companies' commission for settlement transactions;
accounts receivable after the expiration of the limitation period;
negative exchange rate differences;
economic benefits from loans and borrowings and others.

Others also include income and expenses arising as a consequence of extraordinary circumstances of economic activity: natural disaster, fire, accident, nationalization, etc. (extraordinary income and expenses).

To account for financial results from other activities, account 91 “Other income and expenses” was approved. To him, unlike account 90, it is enough to open only 3 sub-accounts:

1 - "Other income";
2 - "Other expenses";
9 - “Balance of other income and expenses”.

Credit account 91.1 reflects the income part of other activities. He can be in correspondence with various accounts (depending on the source of income):

Dt 62 (76) Kt 91.1 - rent has been charged;
Dt 62 (76) Kt 91.1 - accrued proceeds from the sale of assets (for example, fixed assets, intangible assets);
Dt 62 (76) Kt 91.1 - accrued dividends, interest and other income on securities, as well as from participation in the authorized capital of third-party companies;
Дт 66 (67) Кт 91.1 - interest was accrued on previously issued long-term and short-term credits and loans;
Дт 98 Кт 91.1 - income from property received on a gratuitous basis is reflected;
Dt 60 (62, 76) Kt 91.1 - expired accounts payable were written off;
Dt 52, 57 Kt 91.1 - a positive exchange rate difference was detected when selling currency;
Дт 63 Кт 91.1 - the amount of the reserve for doubtful debts is included in other income;
Dt 50, 10, 41, 43 Kt 91.1 - surpluses were revealed based on the results of the inventory;
Дт 10 Кт 91.1 - materials suitable for further use, remaining after damaged fixed assets, goods, finished products, are capitalized;
Dt 76 Kt 91.1 - the amount of insurance compensation for the destroyed property is reflected if it was insured.

And the debit of account 91.2 is intended to reflect expense transactions:

Дт 91.2 Кт 01.2 - the residual value of fixed assets held for sale was written off;
Dt 91.2 Kt 04.2 - the residual value of intangible assets intended for sale was written off;
Dt 91.2 Kt 10 - the cost of materials for sale was written off;
Дт 91.2 Кт 68 - VAT was charged on operations for the sale of fixed assets, intangible assets and materials;
Дт 91.2 Кт 66 (67) - interest was accrued on received short-term and long-term credits and loans;
Dt 91.2 Kt 60 (62, 76) - expired receivables have been written off;

Дт 91.2 Кт 76 - the bank's commission was charged for carrying out settlement operations;
Дт 91.2 Кт 52, 57 - the negative exchange rate difference is reflected;
Дт 91.2 Кт 01.2, 10, 41, 43 - the residual value of fixed assets, materials, goods and finished products, which suffered as a result of an emergency, for example, during a fire in the company's warehouses, was written off.

The meaning of calculating the final financial result is completely similar to account 90:

Like account 90, account 91 assumes no balance on it.

How to determine the final financial result?

Taking into account the financial results for ordinary and other types of activities, we figured it out. But how to determine the overall financial result for the whole enterprise? First, let's define what it consists of.

The final financial result includes:

financial result obtained from ordinary activities;
financial result revealed from other activities;
accrual of income tax.

The result of accounting for the financial result from ordinary activities is reflected:

Dt 90.9 Kt 99 - profit;
Dt 99 Kt 90.9 - loss.

The balance of financial result accounting for other activities is as follows:

Dt 91.9 Kt 99 - reflected profit from other operations;
Dt 99 Kt 91.9 - a loss was received from other types of activities.

Income tax must be charged and paid by Russian and foreign companies that operate within the territory of our country and apply the general tax regime. It is reflected in the following entry in the accounts:

Дт 99 Кт 68.4 - income tax has been charged, which is intended for transfer to the budgetary system of the Russian Federation.

You will learn how to determine the amount of income tax from the publication "How to correctly calculate corporate income tax?" ...

For the entire financial year, the balance of profits and losses on accounts 90 and 91, as well as the accrued income tax, are accumulated on account 99. At the end of each year, the total accounting of financial results is determined and final entries are made using account 84 "Retained earnings (uncovered loss)":

Dt 99 Kt 84 - the net profit was received.
Dt 84 Kt 99 - the loss of the financial year is reflected.

Thus, account 99 is completely closed at the end of the year and cannot have a balance.

Accounting for the use of profits

Profit is a positive result of the company as a whole. Each enterprise is interested in increasing it. But making a profit alone is not enough for the further development of the organization. Its rational and efficient use is of great importance. Net profit is the profit remaining at the disposal of the enterprise after paying income tax. It is reflected in the credit of account 84 and is subject to further distribution.

Find out how to analyze the company's net profit from our article "Procedure for analyzing the company's net profit."

The main areas of distribution of net profit:

Creation of capital reserve. For joint-stock companies, its creation is a prerequisite, other enterprises can create it at their discretion:

Dt 84 Kt 82 - the reserve capital was formed at the expense of net profit.

Repayment of losses of previous years:

Dt 84 Kt 84 - the loss of previous years has been repaid.

Accrual and payment of dividends to members of the company:

Dt 84 Kt 75 (70) - dividends are reflected.

Account 70 is used when the shareholders are employees of the company.

According to the results of the financial year, the enterprise can receive a loss, which is also reflected in account 84. It can be covered in several ways:

At the expense of additional capital:

Dt 83 Kt 84.

At the expense of the amount of the reserve capital, which was created in previous reporting periods after the distribution of net profit:

Dt 82 Kt 84.

Due to additionally attracted contributions of the company's participants:

Dt 75 (70) Kt 84.

Thus, the rational use of profits allows the company to remain more sustainable in the future. Modern economists consider the creation of reserve capital to be one of the most effective ways of using net profit. It will help the company in the future to cover losses from its activities, which are possible in an unstable economic situation.

Analysis of the financial results of the organization

The financial result of the financial year shows the effectiveness of the commercial activity of the enterprise. Timely and complete accounting of financial results is important from an economic point of view, as it allows you to get the most reliable data and conclusions. The analysis allows you to identify the weaknesses of the enterprise, find a more rational use of the available resources. The analysis data can be used for the current and strategic planning of the company's activities in the future.

The main purpose of the analysis, as well as accounting for financial results, is to assess the state of the enterprise as a whole. Such data is necessary not only for the management of the enterprise, but also for the specialists of the company who are responsible for its development in the future. Basically, the analysis uses a deductive method, that is, the movement from general data for accounting for financial results to private ones.

Accounting for financial results involves the preparation and delivery of financial statements. Profit takes one of the key places in analytical calculations. Distinguish between the analysis of accounting and economic profit of the enterprise. The difference between them lies in the order in which the profit is determined.

The calculation of accounting profit is based on accounting data. It is this profit that we see in the income statement. Accounting profit recognizes only the explicit costs of actual and documented business transactions. When determining economic profit, specialists also take into account implicit costs. Because of them, the difference between accounting and economic profit is formed. Implicit costs represent alternative resources or lost economic opportunities (benefits). For example, a business has a savings deposit with a credit institution. If during the year it additionally invested certain financial resources in it, then the income on the deposit could grow. The amount of possible, but not received interest on the deposit will be a lost economic benefit.

Each of the types of profit can be analyzed using basic techniques:

Comparative analysis, which involves comparing the same indicators for similar periods of time, and also reveals deviations between them up or down.
Structural analysis aimed at calculating the structure of each indicator in the total weight of all data and the dynamics of its change.
Factor analysis, which is used to determine the influence of each factor on the economic result and identify the relationship between them.

Each company, which is interested in further increasing profits, should choose those methods of analysis that are best suited to its specifics of activities and industry.

Formulas for calculating the main indicators that characterize the company's activities can be found in the article "Basic financial ratios and formulas for their calculation."

Outcomes

The financial result is the result of the financial performance of the organization. It shows how effective the company was as a whole. Profit is a relative measure of an organization's performance. It testifies to a positive result of the activity. However, after carrying out analytical procedures, other conclusions can be drawn about the efficiency of the enterprise.

Financial results for ordinary activities are recorded on account 90, for other activities - on account 91. The final financial result is determined on account 99 and consists of the balance of income and expenses for ordinary and other activities, accrued corporate income tax.

At the end of each year, account 84 reflects the amount of net profit or uncovered loss. Net profit is distributable and must be used rationally from an economic point of view. The loss of the reporting period can be covered by means of additional and reserve capital, as well as by attracting additional contributions from members of the company.

Currently, a large number of techniques for analyzing financial results are used. They are carried out by various services and management units of the enterprise. The analysis can be carried out on the basis of accounting or economic profit. Each of the types of analysis and accounting for financial results is closely related to each other. None of the analyzes can be carried out without totals in financial performance analysis.

Definition 1

Financial results is expressed by the total of the money supply received in the circulation of the production and economic activities of an enterprise, organization, firm, etc. and is an economic result, reflecting an increase or decrease in profits. The financial result is the last stage that completes a certain cycle of the organization's activities. The financial result of an enterprise is closely dependent on the efficiency of the production processes of products and their implementation and at the same time acts as an essential condition for the next stage of the organization's activities. The higher the indicators of financial results, the correspondingly, the organization is more attractive for investment activities, the higher its business activity in the production, financial and social spheres.

For absolutely any organization, the extraction of a financial result means the recognition by the market and the consumer of the final results of its activities or the fact of extracting the maximum profit from the sale of products, work or services produced by the enterprise. For the business owner, investors, the financial result is the share of the profits extracted in their favor, distributed among them after the proper taxes have been paid. For the state, the effective financial result is represented by taxes paid to the federal and regional budgets. The entire balance of profit after taxes and the transfer of dividends to business owners, interest to creditors and is the net financial result of the organization, intended for its promising production and social formation.

The statement of financial results is included in the financial statements (Law on accounting No. 402-FZ, clause 1 of article 4) and looks like this (table 1):

Picture 1.

Notes:

1 - Reporting year;
2 - Previous year;
7 - Less VAT, excise taxes;
8 - Includes cost of sales, selling and administrative expenses;
9 - Including current income tax, changes in deferred tax liabilities and assets.

Factors affecting the financial result

Remark 1

In the economic analysis in the study of the reasons that entailed fluctuations in the financial indicators of the enterprise in one direction or another, a number of factors are revealed. These factors become the driving forces, causes and conditions of all economic processes in the organization.

These factors can be classified according to a number of characteristics, for example, according to the strength of their influence on the result of the economic activity of the enterprise, they are divided:

The main- those factors that have a key impact on the effective indicator and secondary ones that do not have a decisive impact;
objective factors- not subject to the will and desire of people and subjective - that is, subject to will and desire;
external factors- independent of the activities of a particular organization and internal factors - directly dependent on the activities of the organization;
common factors- applicable to all sectors of the economy;
specific factors- affecting a specific industry or a specific enterprise;
constant and variable factors;
extensive factors(quantitative growth) and intense(use of reserves).

According to the strength of the impact of each specific factor on financial results, they can be divided:

quantitative and qualitative factors;
complex and simple factors;
direct and indirect factors;
measurable and non-measurable factors.

In order to obtain the most complete and objective picture in the study of the financial result, the influence of such factors as natural and climatic, socio-economic, production and economic factors is studied. The factors of influence of the external environment are economic, political, market, technological and international factors. Each of the listed factors can affect both the well-being of the organization and pose a real threat to its activities.

Effectiveness of financial results

Under the influence of the current economic situation, it would be reasonable to believe that the effectiveness of financial results is primarily determined by the amount of profit earned. In the current understanding, profit is an indicator of an enterprise's activity, which summarizes the growth of the volume and productivity of the enterprise, the introduction of new profitable and competitive goods and services on the market, an increase in the current quality of products, a reduction in the cost part of the enterprise, etc. Profit determines the basis for prospective economic development, but it should be noted that profit becomes not only a financial result, but also a key component of financial resources. According to the degree of this participation, profit performs: reproductive, stimulating and distribution functions and characterizes the level of business activity and financial well-being of the organization. But for a complete assessment of the effectiveness of this indicator alone is not enough.

To assess financial efficiency, it is also necessary to compare the indicators of profit and production assets, with the help of which it was reproduced, that is, to assess the profitability of financial activities. In a broad sense, the concept of profitability is one of the main qualitative indicators of the financial performance of an organization and reflects any income that was received in the course of economic and commercial activities.

Profitability criteria are quite important elements that are able to reflect the factorial environment of the organization's profit formation and are an integral part in the study and assessment of the organization's financial performance.

Remark 2

It should be noted that, despite the importance, the indicators of profit and profitability do not fully characterize the financial results of the enterprise and the prospects for its change.

In a global sense, it is possible to combine a set of studies of the state of an enterprise / organization into a general economic analysis of activities (Scheme 1).