Accounting for financial results

As a financial result of activitiesany of the economic entities is considered to be profit or loss. This indicator is determined by comparing the income of the organization and its expenses. That is why it is so important to determine the content of the "income" and "expenses" sections. From the point of view of accounting, it is customary to consider revenues as cash inflows to the organization, in this case, their equivalents can be considered, which can be a stimulus to the growth of the company's own sources. And expenditures are called outflows of property, which cause a decrease in the sources of the firm. Income generation, in this case, implies an increase in the organization of economic benefits due to the receipt of funds, or a reduction in liabilities that can lead to asset growth. Expenses mean a reduction in benefits due to liabilities or asset retirement. Accounting for financial results in any of these cases shows the current situation of the organization.

The end results of organizationsare presented in the special Form No. 2 "Profit and Loss Statement". There is a whole set of normative documents that are designed to record the financial performance of the enterprise:

- Form number 3 "On Accounting".

- Regulation on accounting and accounting in the Russian Federation.

- Position on accounting "Incomes of organizations".

- Position on accounting "Expenses of organizations".

- Regulations on the composition of production andrealization costs that will be included in the cost of products produced by the enterprise, as well as the order in which the financial results are formed, which will be taken into account when taxing profits.

Accounting for financial results from ordinary activities

In a market economy,development of any company is profit, which is the most significant indicator of the effectiveness of activities, as well as the source of its viability. Due to profit growth, the financial basis for expanded company reproduction is formed, as well as to meet the material and social needs of employees and founders. The financial result is understood as the result of the activity of the entity for the reporting period. Expression of financial result can be carried out in the form of profit or loss. In any case, it is necessary to record financial results.

One of the purposes of accounting is the identification ofprofits taxable. In modern conditions, a composite indicator is used that characterizes the result of the activity in the financial aspect. The final indicator is the balance profit or loss, which is expressed in the form of an algebraic sum of the results obtained from financial and economic activities.

Profit or loss is the amount received fromsale of products, goods, services, works, income from participation in some organizations, interest in receiving or payment, as well as other operating expenses or revenues. In this case, the accounting of financial results consists in the following: the result from the sale of products is usually expressed in the form of the difference between revenue and costs for the production process with its subsequent sale.

The starting point for calculating indicatorsprofit, serves the company's turnover in the sale of products. The end of the production cycle is characterized by proceeds from sales, as well as the return of funds advanced to the production process in cash. So begins a new round of money turnover.

Now you know how to account for financial results.

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