Financial result in accounting: postings and example

What is a financial result?

Financial result is the economic result of the economic life of an organization, which is expressed in the form of profit or loss.
Profit is the amount by which revenue received exceeds expenses incurred. Simply put, when the company remains “in the black”. When an organization has incurred more expenses than it has earned from its activities, it is said to have received a loss. Information about financial results is important not only for internal control and management, but also for external parties interested in information of this kind. These include banking organizations that issue borrowed resources for the use of the company at certain interest rates, insurance companies, property insuring organizations, investors investing 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 based on profit analysis, different conclusions can be drawn. For example, after conducting a comparative analysis of profits over several years, a specialist can make a conclusion about an increase or decrease in its value and an increase or decrease in the efficiency of the company.

The resulting loss signals the company's management about the inefficiency 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: formula

The result of the company's work in the period under review is displayed as revenue from the sale of the manufactured product, and the final financial result - as profit and net profit. It is the amount of net profit, which is the final result, that the economist focuses on. The calculation is carried out in stages, since profit is an ambiguous concept and there are several types of it:

• Gross;
• From implementation;
• Before tax;
• Clean.

When starting the calculation, the accountant uses the following formulas:

1. Gross profit (GP) = Вр - Срт, where Вр - sales revenue, Срт - cost of goods sold;
2. Profit from sales (Pr) = VP – KR – UR, where KR and UR are commercial/administrative costs;
3. Profit before tax (Pdon) = Pr + Dvo – Pvo, where Dvo and Pvo are operating/non-operating expenses and income;
4. Net profit (NP) = Pdon – N, where N – taxes and tax liabilities.

This is interesting: How to get a percentage of a number

The formulas used make it possible to calculate the financial result, which shows how efficiently the company operated in the reporting period. Now let’s figure out what accounting records this indicator is recorded in.

Financial result from ordinary activities in accounting

The types of activities that are fixed in the constituent documentation can be classified as ordinary. Account 90 is intended for recording financial results. It is more convenient to maintain “ordinary” income and expenses in subaccounts opened to it:

• 1 - “Revenue”.
• 2 - “Cost of sales”.
• 3 - “VAT” (sales or “output” VAT).
• 4 - “Excise taxes”.
• 9 — “Profit/loss from sales.” It is in this subaccount that the final result of accounting for financial results is summarized.

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

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

Read about the features of accounting for production expenses in our article “Main production in the balance sheet (nuances).”

How to determine whether a company has made a profit or a 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 the account 90.1 is greater than the debit turnover, then the company can record a profit: Dt 90.9 Kt 99. If the result is the opposite, then they speak of a loss received: Dt 99 Kt 90.9. Note that at the end of the reporting period there should be no balance on account 90.

How accounting is built

Accounting is based on the financial calculation formula. results: FR = FRp + FRpr - N + SHE - IT - ShP , where:

• FR – final financial. result;
• FRp – profit (loss) from sales;
• FRpr - the same from other types of activities;
• N – tax (on profit);
• OTA – deferred tax assets;
• IT – the same thing – obligations;
• ShP – the amount of sanctions for violation of legislation in the field of NU.

Instructions for using the chart of accounts require taking into account profits and losses on account 99 BU . The debit will reflect the company's expenses and losses, and the credit will reflect the company's income and profit. Comparing debit and credit turnovers, we obtain a financial result. If a profit is made, it will be recorded under credit 99. This profit must be reduced by the amount of the corresponding tax and the amount of sanctions (if they were applied to the organization). The indicated amounts are recorded as debit 99.

On a note! PBU 18/02 R.4 defines the amount of income tax as a conditional expense (income), depending on the amount from which it was determined: profit or loss.

The main entries for account 99 reflect:

• Dt 90 (99) Kt 99 (90) – write-off of profit (loss);
• Dt 91 (99) Kt 99 (91) – write-off of the balance of profit (loss) on other income and expenses.

In addition, in accordance with the formula, conditional expenses associated with income tax, tax sanctions, liabilities, and income tax recalculations may be reflected here.

Account 99 corresponds at the end of the year with account 84 (“Retained earnings/uncovered loss”), depending on the financial receipts. result (page 2400 of the Financial Results Report):

• Dt 99 Kt 84 - if profit is made;
• Dt 84 Kt 99 - if there is a loss.

The company's main activity, by default, brings in the lion's share of income that affects profit.

To record business transactions during the year, account 90 “sales” is used here, and subaccounts are opened for it, specifying the accounting. Credit 90 reflects sales revenue at sales prices, and debit:

• cost of products sold;
• VAT on goods sold;
• excise taxes.

Subaccounts of account 90: 1 - revenue, 2 - cost of sales, 3 - VAT, 4 - excise taxes, 9 - profit (loss) from sales. Monthly revenue and the amount of expenses (cost, VAT, excise taxes) are compared with each other and a financial result is revealed, which is reflected in subaccount 9 and written off every month to profit (loss): Dt 90/9 Kt 99 - profit, Dt 99 Kt 90/9 - loss.

Let's give an example of reflecting transactions on account 90 “Sales”. Let (conditionally): revenue for the period amounted to 2,000,000 rubles, VAT - 20%, including the cost of products - 900,000 rubles, sales costs - 50,000 rubles. Income, according to the accounting policy, is recognized on shipment.

Postings:

• Dt 62 Kt 90/1 - 2000000.00 - sales revenue is taken into account.
• 2000000:1.2 = 1666666.67. 2000000-1666666.67= 333333.33. Dt 90/3 Kt 68 - 333,333.33 - VAT charged.
• Dt 90/2 Kt 43 (or 41) - 900,000.00 - cost written off.
• Dt 90/2 Kt 44 - 50,000.00 - selling expenses.
• 333333.33 + 900000.00 + 50000.00 = 1283333.33. 2000000.00 – 1283333.33 = 716666.67. Dt 90/9 Kt 99 716666.67 - profit from sales is taken into account.

Other income/expenses are accounted for in account 91. Subaccounts are usually used here: 1 - income, 2 - expenses, 9 - balance of income/expenses, and the financial result is determined by comparing credit turnover in subaccount 1 and debit in subaccount 2.

The monthly postings will be as follows:

• Dt 91/1 (91/9) Kt 91/9 (91/2) – the balance of other income (expenses) is written off.
• Dt 91/9 (99) Kt 99 (91/9) – at the end of the month, profit (loss) from other activities was recorded.

Income tax is calculated and transferred using a separate subaccount. 68:

• Dt 99 Kt 68/profit;
• Dt 68/profit Kt 51.

By analogy, the sanctions mentioned above are also taken into account.

Analytics on financial accounts. results is formed in order to ensure transparency of the data necessary to work with the profit and loss account and balance sheet indicators. To increase analyticality, for example, separate accounts can be opened on account 99: 1 - profits/losses from ordinary activities, 2 - similarly from operating activities (identified on account 91), 3 - from non-operating transactions (also identified on account 91), 6 – income tax payments, sanctions, etc.

All these points must be reflected in the accounting policy, and a working chart of accounts must be adopted. It would be useful to indicate in this document how to use the resulting net profit:

• consolidation of authorized capital;
• dividend payment;
• capital investments;
• repayment of losses from previous periods, etc.

They are reflected in various entries, for example: Dt 84 Kt 84 - the loss of previous years is repaid; Dt 84 Kt 75 (or 70 if we are talking about an employee) - dividends are reflected.

Losses are covered by reserve, additional capital, and attraction of deposits from participants under Kt 84 accounts.

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 types of activities” is provided for them. The list of other income consists of:

• income from the provision of property for rent;

From January 2022, lease transactions are accounted for in accordance with FAS 25/2018, approved by Order of the Ministry of Finance of Russia dated October 16, 2018 No. 208n. You can start applying the Standard earlier by reflecting this fact in the accounting (financial) statements

How to take into account financial leases in accounting and accounting when applying FAS 25/2018, find out in the Ready-made solution from ConsultantPlus. If you don't have access to K+, get a trial demo access for free.

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

The list of other expenses is similar to income:

• cost and expenses related to the sale of assets;
• VAT on sales transactions;
• compensation for damage to third party contractors;
• fines, penalties and penalties intended for payment;
• commission of credit companies for settlement transactions;
• accounts receivable after the expiration of the statute of limitations;
• negative exchange rate differences;
• economic benefits from received loans and borrowings and others.

Others also include income and expenses arising as a consequence of emergency 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. Unlike account 90, it is enough to open only 3 subaccounts:

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

The credit of account 91.1 reflects the income from other activities. It can be in correspondence with various accounts (depending on the source of income):

• Dt 62 (76) Kt 91.1 - rent accrued;
• 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;
• Dt 66 (67) Kt 91.1 - interest accrued on previously issued long-term and short-term loans and borrowings;
• Dt 98 Kt 91.1 - income from property received free of charge is reflected;
• Dt 60 (62, 76) Kt 91.1 - accounts payable with an expired statute of limitations are written off;
• Dt 52, 57 Kt 91.1 - a positive exchange rate difference was identified when selling currency;
• Dt 63 Kt 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 identified based on the results of the inventory;
• Dt 10 Kt 91.1 - materials suitable for further use remaining after damaged fixed assets, goods, finished products are capitalized;
• Dt 76 Kt 91.1 - reflects the amount of insurance compensation for destroyed property if it was insured.

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

• Dt 91.2 Kt 01.2 - the residual value of fixed assets intended for sale is written off;
• Dt 91.2 Kt 04.2 - the residual value of intangible assets intended for sale is written off;
• Dt 91.2 Kt 10 - the cost of materials intended for sale is written off;
• Dt 91.2 Kt 68 - VAT is charged on transactions for the sale of fixed assets, intangible assets and materials;
• Dt 91.2 Kt 66 (67) - interest accrued on short-term and long-term loans and borrowings received;
• Dt 91.2 Kt 60 (62, 76) - expired accounts receivable written off;

For more information about the procedure for writing off receivables, read our material “The procedure for writing off receivables.”

• Dt 91.2 Kt 76 - bank commission charged for conducting settlement transactions;
• Dt 91.2 Kt 52, 57 - negative exchange rate difference is reflected;
• Dt 91.2 Kt 01.2, 10, 41, 43 - the residual value of fixed assets, materials, goods and finished products that were damaged as a result of an emergency, for example, in a fire in the warehouses of an enterprise, is written off.

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

• Dt 91.9 Kt 99 - profit on other operations is reflected;
• Dt 99 Kt 91.9 - loss received from other activities.

Like the score 90, the score 91 assumes there is no balance on it.

Read about the procedure for determining exchange rate differences in our article “Accounting for foreign exchange transactions (PBU, postings).”

Account 91 “Other income and expenses”

The financial results of the enterprise's activities form income and expenses from ordinary activities and other income and expenses. To account for income and expenses from ordinary activities, account 90 “Sales” is used, which reflects transactions for the sale of goods, finished products, provision of services, performance of work if this is the ordinary activity of the enterprise.

To reflect other income and expenses, account 91 is used, which has a similar structure to account 90. This is also a complex account with several sub-accounts, each of which is designed to reflect specific transactions.

Subaccounts of account 91 “Other income and expenses”:

The following subaccounts are most often opened:

• 91.1 – intended to reflect other income, the amounts of which are credited to the subaccount
• 91.2 - intended to reflect other expenses that are entered into the debit of the subaccount
• 91.9 – formation of financial results (by analogy with the 90th accounts) – the debit of the subaccount records the profit received from other income and expenses, and the credit – the loss

Other income and expenses reflected on account 91 include non-operating and operating income and expenses. By the way, extraordinary expenses are not included among others, but are reflected directly in account 99 “Profits and losses”.

What income can be reflected on the credit of subaccount 91.1:

• Rent payments from tenants
• Dividends, % on securities, on loans issued
• Proceeds from the sale of fixed assets, intangible assets, materials, if this is not the usual activity of the organization
• Fines, penalties, penalties received when the counterparty violates the terms of contracts and other agreements
• Income from assets received free of charge
• Compensation for damage caused to the organization
• Profit from previous years
• Expired accounts payable
• Exchange differences, etc.

Postings on the credit of account 91 subaccount 1:

D62 (76) K91.1 – reflects the cost of accrued rental payments receivable.

D62 (76) K91.1 – dividends and interest on securities accrued.

D62 K91.1 – proceeds from the sale of assets.

D66 (67) K91.1 - % receivable on issued credits and loans.

D98 K91.1 – income from property received free of charge.

D62 K91.1 – profit of previous years is reflected.

D62 K91.1 – accounts payable with an expired statute of limitations are written off.

D57 (52) K91.1 – positive exchange rate difference from the purchase of foreign currency.

D62 K91.1 – the amount of the reserve for doubtful debts is included in other income.

D99 K91.1 – loss from other activities of the organization is reflected.

What expenses can be reflected in the debit of subaccount 91.2:

• Costs of transferring property for rent
• Cost of assets sold: for fixed assets and intangible assets - residual value, for tangible and other assets - actual cost
• Expenses associated with the sale of fixed assets, intangible assets, material assets, if these sales are not the usual activity of the organization
• % on loans taken
• Bank commissions and other fees for services of credit institutions
• Paid fines, penalties, penalties
• Expenses for objects undergoing conservation
• Compensation for damage caused by the organization
• Losses from previous years
• Expired accounts receivable
• Exchange differences, etc.

Postings to the debit of account 91 subaccount 2:

D91.2 K01 – the residual value of a fixed asset intended for sale is written off.

D91.2 K04 – the residual value of intangible assets intended for sale is written off.

D91.2 K10 – the cost of materials sold is written off.

D91.2 K66 (67) – interest accrued for payment on loans and borrowings taken out.

D91.2 K20 – costs for conservation of objects.

D91.2 K60 – expired accounts receivable are included in other expenses.

D91.2 K99 – profit from other activities is reflected.

Closing account 91 at the end of the year

During the month, other expenses and income are accumulated in the debit of subaccount 91.2 and the credit of subaccount 91.1. At the end of the month, the difference between the debit and credit of account 91 is calculated, the final balance is displayed, which is reflected in subaccount 91.9 in correspondence with account 99. The total profit for the month is recorded for debit 91.9, and the loss for credit.

Thus, at the end of the month the synthetic account, as a whole, has a zero balance. But on each individual sub-account the balance remains and accumulates from month to month.

At the end of the year, account 91 is closed.

All subaccounts (except 91.9) are closed to subaccount 91.9 so that the final balance for each subaccount becomes zero.

Postings for closing account 99:

D91.1 K91.9 – closing subaccount 91.1, posting is performed for the amount of the final credit balance of subaccount 91.1.

D91.9 K91.2 – closing subaccount 91.2, posting is carried out for the amount of the final debit balance of subaccount 91.2.

Thus, at the end of the year, the balance for each subaccount and for account 91 as a whole is equal to 0. At the beginning of the next year, account 91 is opened anew.

How to determine the final financial result?

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

The final financial result includes:

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

The result of accounting for financial results for ordinary activities is reflected:

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

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

• Dt 91.9 Kt 99 - profit on other operations is reflected;
• Dt 99 Kt 91.9 - loss received from other activities.

Income tax is required to be assessed 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 accounting accounts:

Dt 99 Kt 68.4 - income tax is charged, which is intended to be transferred to the budget system of the Russian Federation.

You can 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 in accounts 90 and 91, as well as accrued income tax, are accumulated in account 99. At the end of each year, the result of accounting for financial results is determined and final entries are made using account 84 “Retained earnings (uncovered loss)”:

• Dt 99 Kt 84 - net profit 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.

At the end of the year, all organizations transfer information from the 90th accounts to the financial results report. Let us remind you that at the end of 2021, fill out the information on the updated form. Read about what has changed in the form here.

ConsultantPlus experts told us how to correctly fill out a financial results report. Get trial access to K+ and learn how to fill out Form 2 for free.

You can download a sample of filling out a report in the new edition with comments on the design from K+ experts in the ConsultantPlus reference and legal system. To do this, get a free trial demo access to the system:

Formation of financial results for the year

To reflect the final financial result of an organization’s activities for a month or a year, account 99 “Profits and Losses” is used, the debit of which reflects losses, and the credit – profits.

The final profit or loss is formed by income and expenses from ordinary activities of the organization (sale of goods, products, provision of services, performance of work) and other income and expenses (which include operating and non-operating).

Income and expenses from ordinary activities are reflected in account 90 “Sales”.

Other income and expenses are reflected in account 91.

Plus, the financial result is affected by taxes, in particular, income tax, which reduces the organization’s final profit.

Also, account 99 may reflect other losses and profits received by the organization during the reporting period that are not accounted for in other accounts. For example, expenses received in emergency situations are written off directly to account 99.

How is the financial result of an enterprise formed?

Within a month, all transactions are reflected in the organization’s accounts.

At the end of the month, the total profit or loss from ordinary activities, as well as from other income and expenses, is written off by posting to account 99:

• D90.9 K99 - profit from ordinary activities for the month is reflected
• D99 K90.9 – loss from ordinary activities for the month is reflected
• D91.9 K99 – profit from other income and expenses is reflected
• D99 K91.9 – loss from other income and expenses is reflected

When calculating income tax, it is accrued for payment to the budget by posting D99 K68. Income tax.

If emergency expenses arise, they are written off D99 K01 (04, 10, 43, 50, 70, etc.).

Closing account 99 at the end of the year

At the end of the year, the debit and credit turnover of account 99 are compared, and the final balance is displayed. If the balance is debit, then the financial result for the year is a loss, if the balance is credit, it is profit.

The loss or profit received during the year of activity must be written off at the end of the year, and account 99 is closed so that its final balance is equal to zero.

At the beginning of next year, accounting account 99 is reopened.

The final final financial result in December is written off to account 84 “Retained earnings (uncovered loss).”

Postings for closing account 99 at the end of the year:

• D84 K99 – final financial result for the year – loss
• D99 K84 – final financial result for the year – profit

Balance Sheet Reformation

Balance sheet reformation is the closure of accounts related to the formation of the company’s financial result. Closing accounts means resetting their final balance to zero.

The reform concerns the following accounts: 90 “Sales”, 91 “Other income and expenses”, 99 “Profits and losses”.

Based on the results of the reformation of the balance sheet on account 99, the final profit or loss is identified and transferred to account 84 by the transactions indicated above.

The Reformation allows you to end the year, reset your accounts and start accounting in the new year with a “clean slate.”

The balance sheet is reformed on December 31 of the year after all business transactions related to that year have been reflected.

Accounting for the use of profits

Profit is a positive result of the company's activities as a whole. Every enterprise is interested in increasing it. But making a profit alone is not enough for the further development of the organization. Its rational and effective 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 a company’s net profit from our article “Procedure for analyzing a company’s net profit.”

The main directions of distribution of net profit:

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

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

• Repayment of losses from previous years:

Dt 84 Kt 84 - the loss of previous years is repaid.

• Accrual and payment of dividends to company participants:

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

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

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

• Using additional capital:

Dt 83 Kt 84.

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

Dt 82 Kt 84.

• Due to additionally attracted contributions from company participants:

Dt 75 (70) Kt 84.

Thus, the rational use of profits allows the enterprise to remain more sustainable in the future. Modern economists consider the creation of reserve capital to be one of the most effective ways to use 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 dynamics of financial results

Conducting a horizontal analysis consists of comparing the values ​​of one selected indicator for a certain period of time. Its main task is to assess the likelihood of successful development of the company and increase in its profits in the future. To this end, financial experts try to get answers to the following questions:

• what is the probability of stable growth of net, pre-tax, operating and gross profit over time;
• how much financial expenses (% payable) are growing faster than the amount of borrowed funds on the balance sheet (or vice versa);
• How quickly financial income (% of earnings) grows compared to investments;
• what is the rate of cost growth relative to the size of revenue (if the cost grows faster, it means that management is unable to manage production costs);
• at what rate does net profit increase relative to the rate of revenue growth?

Important! When conducting horizontal analysis, special attention should be paid to the underlying dynamics that have formed rather than to the absolute value of profit. The financial statements of the enterprise will help you find the value of profit for previous periods.

Here is an example of horizontal analysis (dynamic analysis):

Analysis of the financial results of the organization's activities

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

The main purpose of 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 company specialists responsible for its further development. Basically, the analysis uses a deductive method, that is, a movement from general data of accounting for financial results to specific ones.

Accounting for financial results involves the preparation and submission of financial statements. Profit occupies one of the key places when carrying out analytical calculations. A distinction is made between the analysis of accounting and economic profits of an enterprise. The difference between them lies in the manner in which 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 explicit costs for real and documented business transactions. When determining economic profit, experts 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 company has a savings deposit with a credit institution. If it had additionally invested certain financial resources into it during the year, then the income on the deposit could have increased. The amount of possible, but not received interest on the deposit will be lost economic profit.

Each type of profit can be analyzed using basic techniques:

• Comparative analysis, which involves comparing the same indicators over 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 relationships between them.

Each enterprise that is interested in further increasing profits must choose those analysis methods that best suit its specific 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.”

Financial result from product sales

The financial result from the sale of products is income.

The income of enterprises is formed from proceeds from the sale of products, goods, performance of work and provision of services.

Sales revenue is the main income of the enterprise, the main source of its cash receipts, reflects the results of the production and economic activities of the enterprise for a certain period of time (year, quarter, month).

Revenue from sales of products accounts for 90% of all income in production. It is the main source of cost recovery for production and sales of products and is used by the enterprise for:

• — payment of supplier bills for material assets;
• — payment of wages to workers and employees;
• — creating a depreciation fund;
• — creation of economic incentive funds;
• — contribution of payments to the budget (turnover tax, payment for production assets, fixed payments, free balance of profit);
• — payment of interest on the loan;
• — repayment of a bank loan, etc.

In a market economy, making a profit is the immediate goal of production. Profit creates certain guarantees for the further existence of the enterprise, since only its accumulation in the form of various reserve funds helps to overcome the consequences of the risk associated with the sale of goods on the market.

On the market, enterprises act as relatively isolated commodity producers. Having set the price for the product, they sell it to the consumer, receiving cash proceeds, which does not yet mean making a profit. To identify the financial result, it is necessary to compare revenue with production and sales costs, which take the form of production costs.

If revenue exceeds cost, the financial result indicates a profit. An enterprise always sets profit as its goal, but does not always make it. If revenue is equal to cost, then it is only possible to reimburse the costs of production and sales of products. When costs exceed revenue, the company exceeds the established amount of costs and receives losses - a negative financial result, which puts the company in a rather difficult financial situation, which does not exclude bankruptcy.

For an enterprise, profit is an indicator that creates an incentive to invest in those areas where the greatest increase in value can be achieved. Profit as a category of market relations performs the following functions:

• — characterizes the economic effect obtained as a result of the enterprise’s activities;
• - is the main element of the financial resources of the enterprise;
• - is a source of formation of budgets at different levels.

Losses also play a role. They highlight the mistakes and miscalculations of the enterprise in the areas of using financial resources, organizing production and marketing of products.

The successful financial and economic activities of the enterprise will depend on how accurately the revenue is planned. The calculation of planned revenue must be economically justified, which will allow for timely and complete financing of investments, an increase in own working capital, appropriate payments to workers and employees, as well as timely settlements with the budget, banks and suppliers.

Changes in the volume of sales revenue have a great impact on the financial results of operations and on the financial stability of the enterprise, therefore the financial department of the enterprise organizes daily operational control over the shipment and sale of products.

Therefore, proper revenue planning in an enterprise is of key importance.

Results

The financial result is the result of the financial activities of the organization. It shows how effective the company's activities were as a whole. Profit is a relative indicator of an organization's performance. It indicates a positive result of the activity. However, after conducting analytical procedures, other conclusions about the efficiency of the enterprise can be made.

Accounting for financial results for ordinary types of activities is carried out on account 90, for other types of 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 types of 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 subject to distribution and must be used rationally from an economic point of view. The loss of the reporting period can be covered using additional and reserve capital, as well as by attracting additional contributions from company participants.

Currently, a large number of techniques for analyzing financial results are used.
They are carried out by different services and management levels of the enterprise. The analysis can be carried out on the basis of accounting or economic profit. Each type of analysis and accounting of financial results is closely related to each other. Without the final accounting data of financial results, it is impossible to carry out any type of analysis. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Writing off accounts receivable to the financial result

Published in the issue: Accountant Consultant N2 / 2002

As the experience of conducting audits shows, in the accounting records of many enterprises, accounts receivable from many years ago are listed in accounts 60 “Settlements with suppliers and contractors”, 62 “Settlements with buyers and customers”, 71 “Settlements with accountable persons”, 73 “Settlements with personnel for other operations”, 76 “Settlements with other debtors and creditors”.

Part of the total amount of debt is overdue, the other part is unrealistic for collection. According to current legislation, if accounts receivable are subject to write-off for financial results, then they should be written off, otherwise net profit is distorted, which directly affects the interests of the owners (shareholders), and the balance sheet of the enterprise also becomes unrealistic.