In today's economy, there are all the companies in the funds obtained from the sale of goods, works or services.But participants in the company, too, should have their income from the company.For this purpose there is a special line of the balance - retained earnings.
profit and losses of the company
Any company begins its activities to generate income.Members of society are supposed to have some extra money, regardless of whether they work at the plant or not.Retained earnings in the balance - is the remaining income of the company after payment of all debts to suppliers and employees.
However, for a business organization can recover damages, which are also responsible for the company participants.The Tax Code allows you to increase the net assets of the company by means of shareholders (participants), also suitable repayment of uncovered loss.Help shareholders (participants) is vital at the very moment when the company loses money because it threatens bankruptcy and liquidation of the company.Therefore, the owners of the loss cover acts as the most frequent case of recovery of the net assets of the enterprise.
Balance: retained earnings in equity organization
To clarify this aspect of the turn to the Regulations on accounting, which regulates the procedure for control of financial matters in the workplace.In accordance with para. 66 PBU retained earnings in the balance - is the equity of the company.It is formed not by contributions from members, and through the efforts of the enterprise, being a factor in the growth of the welfare of the organization and its owners.In other words, retained earnings - is a source of equity capital is not an external and internal origin.
resulting profits can be spent on the distribution of dividends between the parties or to remain in the company in the form of additional capital funds or assets for further development activities and the repayment of losses.
What's retained earnings
Account "Retained profit / loss" is required to store information about the presence and movement amount of the gain or loss on the company's balance sheet.
should be noted that the source of payment of income tax, is a tax penalties by 99 after the formation of the financial result.Retained earnings in the balance sheet - a source of dividend payments, contributions to the fund.This involves the use of net profit.
When we say that the income tax, dividends paid out of net profits, meaning the final profit after tax, it is also true.However, accounting is clearly divided the formation of net profit during the reporting period and its use with the help of the account to record the retained earnings for the statutory objectives of the enterprise.
Order retained earnings
right to dispose of the net profit belongs to the owners of the enterprise, as reflected in relevant standards.The owners of the company have the right to spend retained earnings for different purposes, such as to encourage employees, charity, to the financing of social activities, conducting cultural and sporting events, and so on. N. However, in most cases, this income is or dividends, or for the improvement and development of the business.
permits for posting on the distribution of profits is the protocol members of the enterprise.In addition, entries can be made on the basis of the provisions of the statute, if they identified uses of net income and established norms of deductions.Any other costs, bypassing the will of owners of the enterprise (including so-called expenses not deductible for tax purposes) to debit the account of retained profit / loss is impossible.
Profit distribution is carried out at the annual meeting of the members.If the company distributes the net profit for 2013, the wiring carried out in 2014, when held meeting of members (shareholders).
Retained earnings: Balance Sheet and wiring
So, retained earnings in the balance sheet - is active-passive account.It is formed by retained (by nature - clean, that is obtained after tax) profit or uncovered loss.Debit account 84 reduces net worth, credit balances, respectively, increases.The right to dispose of the net profit belongs to the owners of the enterprise.Of all the other components of equity earnings - the free to use, since the list of areas of its public spending.However, we must remember that this is no reason the company is free to bypass the will of the shareholders (participants), spend it for purposes not covered by the charter and other documents of the enterprise.
In analytical accounting to account 84 should open separate subaccounts, including "accrued dividends", "Contributions to the capital reserve", "revaluation of the OS," and so on. N. Also, rationally, to a separate subaccount accounted income (loss) of the reporting yearand retained earnings of the previous year.In addition, on account of 84 (as a separate balance sheet account Chart of Accounts is not provided), you can take into account the various funds created from net profit at the initiative of the company: a special employee share ownership fund, development fund, and so on. N.
Retained earnings as themanufacturing source of
great interest is the fact that the Ministry of Finance in order of recommendation offered under a separate analytical accounting to reflect the portion of the net profit, which is directed to the development of the enterprise.As is known, the acquisition of fixed assets is due to the property (cash), and mandatory posting on the instructions of the source is not present.This wiring to decrease retained earnings and net assets of the enterprise does not.The company can easily prove that the fixed assets were acquired exclusively by profit rather than by other means.Identify sources of funding it can also be based on the analysis of the balance sheet structure.In this analysis implies that the investments made in the first place due to the net profit in the second - at the expense of long-term loans, in the third - at the expense of other payables.
best location on the balance sheet profit
Enterprise profitable to maintain equity in net income is, not in the authorized capital or the extension.Profits can quickly recover losses increased its share capital, if the law will increase the minimum size, to increase other funds in equity.The higher the amount of retained earnings within the company from the threat of bankruptcy, and the more optimistic of its prospects.
84 account in the hands of the chief accountant
In conclusion, it should be noted that retained earnings is entirely in the hands of the chief accountant.Yes, no one except members of society, can not dispose of property of the company, but only by the chief accountant of the organization depends on the profit, the correct calculation of certain amounts and double entry in the accounts.Only the chief accountant of the company can tell the participants how to act in a given situation, where, and what amount of retained earnings forward.
