Every business organization has the task - making profit, increased sales and more.The essence of any activity should be limited to a particular result.That such activity is the result of a report on the financial results.On it will be discussed in this article.
Income statement - what is it?
This report is not only the performance of the enterprise for the tax, but the results of this activity for the organization.After all, thanks to him, you can see how much we earn, which suffered losses and other.
The contents of the report on financial results
- revenue.This line is the company's revenue from its activity, ie gross turnover.
- cost price - the cost of manufacturing products (services).This line displays the cost of the organization on the products.Since this line is weaned, the figures in it according to the rules for reporting are in parentheses.
- Gross margin - the difference between revenue and cost.With this line, we can see the profitability of the enterprise before deduction of indirect production costs.
- Selling expenses.In this article, given the costs of organization associated with sales (advertising, marketing).As the cost of this article is taken into brackets.
- Administrative expenses.Income statement includes administrative expenses, the cost of enterprise management.It is written in parentheses.
- profit from goods sold.The article, which shows a net profit from the activity.It is calculated as gross profit less selling and administrative expenses.
- Revenues from other businesses - a revenue source of which are the others that "pour" capital in the form of dividends, irrevocable financial assistance and so on.
- Interest receivable - is the interest that will get the shares, deposits or other securities.
- Interest expense is a finance, which we have to pay on loans, leasing loans.
- Other income.Here are the revenues that are not the main character for the business.
- Other expenses - other costs not included above.
- Profit before tax.This indicator is obtained from the fact that revenues from the above subtract costs.
- Current income tax.The index is written on the basis of calculations of tax.
- Permanent tax liabilities.This figure is included in the compilation of the report on the financial results, if there is a difference between the accounting and tax accounting.
- Others - a string, which specifies the amount that affect the amount of profit, but not displayed anywhere in the above lines.
- net profit.The main line, which contains the income minus all expenses and taxes.
When and how to rent this report?
report financial results every quarter now rent (depending on the tax system).Together with the company's balance sheet (Form 1) the above document (form 2) is applied to the bodies of statistics and tax authorities.Failure to deliver such documents entails significant penalties.