Making a profit is a prerequisite and the goal of all business activities of each business structure.With profit (profitability) evaluated the effectiveness of the whole economy.It is a major source of funding for social and economic development.
Currently, profits gained an important leadership role in the new financial and economic mechanism of management of economic and social development.It is not that other, as the basis of financial stability, as well as ensuring full government revenue, population and businesses.In addition, there are various kinds of profits, it performs its functions and plays a special role in the activities of any company.
before, to understand what is the nature and types of business profits, you must realize that it has an important property - reflect the end result of extensive and intensive development.In addition, the profit is the criterion of efficiency of reproduction, it is - an indicator with two boundaries: the cost of production and the volume of services or products (sales).
In its economic content expresses profit in monetary terms of the value of the surplus product.It performs a number of functions.They are stimulating, reproductive and control functions.
order to determine the financial results, you should use the accrual method.That is why the profit or loss shown in the financial statements do not reflect a real cash flow of any enterprise, as a consequence of its economic activity.So, in order to restore the real picture of the largest financial results, which are increasing or decreasing the value of its capital need additional financial calculations.
Financial results of a particular company on the account of losses and profits are always reflected in two ways: 1. As a result of the implementation of works, products, materials, services and other assets, at the same time it can be identified in the accounts of pre-implementation.2. As a result, that is not associated with the process of implementation.He also called the non-operating gains and losses.
There are different types of income.They differ among themselves and those who want to go into business, are obliged to understand them.Now allocate these types of income:
1. Balance sheet profit or loss is the sum of the profit or loss resulting from the sale of financial activities, products, other non-operating income from operations, and they are reduced to the sum of all costs of these operations.
2. Profit from ordinary activities or from the sale of works, services and products.It is the difference between the total revenue from product sales at current prices without any special tax, excise tax, VAT and the cost of it to make and implement it.
3. Profit or loss from financial operations and other non-sales operations is the result of operations, which are reflected in the account 47, entitled "Sales and other disposals of fixed assets" and by 48 entitled "Realization of other assets" and yet the difference betweenthe sum of all received and paid penalties, fines, penalties, interest, exchange rate differences for all foreign currency accounts, the past losses and profits that were identified during the year and so on.
4. Taxable income is the difference between net profit and the amount of rent payments, income taxes, taxes on imports and exports.
5. Types of profits continues to net income, which is directed to the social, industrial development, the creation of reserve funds, financial incentives of all employees, the payment of the budget of the various economic sanctions to charity, and so on.
6. Finally, the consolidated profit for the entire consolidated financial statements of the activities and, in addition, the financial results of subsidiaries and parent companies.
