Business results: economic analysis.

Business results: economic analysis.

Its distribution took place only after the approval of the annual report. Payments and deductions from profits were recorded in account 80 “Diverted funds from profits” throughout the year.

The planned profit was distributed in the following order: first of all, contributions to the budget were made (payment for fixed and working capital, interest on bank loans); then the profit was directed to incentive funds (material incentives, socio-cultural incentives, production development fund); the part of the profit that remained after this distribution was used to finance centralized capital investments, increase the company’s own assets, cover the costs of housing and communal services and other costs within the amounts provided for in the plan. Much of the profits were transferred to higher organizations. The difference between the total amount of profit and the above payments and reimbursements was the free balance of profit, which was sent to the budget.

Extracurricular profits were used by associations and enterprises to transfer to the budget fees for fixed assets and working capital, fixed payments, interest payments on bank loans, to replenish incentives, socio-cultural activities, housing, production development, premiums and other needs. The difference between the total amount of excess profit and the corresponding payments and deductions was sent to the budget as a contribution to the balance of excess profit. As a result of the distribution, last year’s profits were written off the balance sheet, and accounts 80 “Diverted funds from profit” and 99 “Profit and loss” were closed.

The development of market relations, the collapse of the USSR and Ukraine’s independence in 1991 put forward new requirements for the organization of accounting. In this regard, the resolution of the Cabinet of Ministers of Ukraine of April 3, 1993 approved the regulation “On the organization of accounting and reporting in Ukraine”. This provision not only replaced a number of pre-existing regulations on the organization of accounting, but also reflected the changes that have occurred in the formation of market relations.

Under market conditions, profit is the most important indicator of economic activity of the enterprise, which distinguish between balance sheet profit, profit that remains at the disposal of the enterprise (net profit), posted profit.

Account 80 “Profits and losses” was assigned to summarize information on the formation and use of financial results of the enterprise in the reporting period profits and losses throughout the year. The debit of this account reflected losses, and the credit – the company’s profits.

The comparison of debit and credit turnovers for the reporting period showed the financial result of the reporting period – balance sheet profit or loss. The final financial result of the enterprise for the reporting period was expressed in the amount of profit or loss. Revenues that the company received from the sale of products, goods, works, services are reflected in the credits of account 46 “Sales” in correspondence with the debit of account 50 “Cashier” 76 “Settlements with various debtors and creditors” 62 “Settlements with buyers and customers “61” Calculations on advances “.

The debit of account 46 “Sales” also debited the cost of sales of products, goods, works, which were collected by debiting account 43 “Non-production costs”; the cost of goods sold at wholesale prices of the enterprise, which was accounted for by debiting account 45 “Goods shipped”.

The monthly difference between credit and debit turnovers on account 46 “Sales” was debited to account 80 “Profits and losses”. When determining the profit from the sale of products, it takes into account subsidies from the budget for state regulation of prices, coverage of losses of the enterprise.

The profit that remains at the disposal of the enterprise (net profit) is the difference between the balance sheet profit and tax payments from it.

During the reporting year, deductions from taxes and other obligatory payments to the state budget, contributions to economic incentive and special purpose funds, repayment of long-term loans, directing of profits to capital investments, accrual of dividends and reflected on the debit of account 81 “Use of profit”.

Information on the formation of financial results of the enterprise in the reporting month was reflected in the journal-order №15 on the credit account 80 “Profits and losses”. Analytical accounting of account 80 was carried out in accordance with each item of profit and loss in the form of cumulative information opened for the reporting year.

Current trends in the development of international economic integration, and Ukraine’s desire to enter the international economic community with dignity have given impetus to the implementation in Ukraine of International Accounting Standards (IAS).

The transfer of accounting in Ukraine to the generally accepted principles of accounting in international practice has led to the introduction into national theory and practice of accounting policy of new rules to be followed when measuring, evaluating and recording business transactions and reflecting their results in financial statements … The purpose of accounting and financial reporting is now to provide users with complete, truthful information about the financial condition, cash flows and results of operations of the enterprise in accordance with the requirements of IAS.

Setting such a goal required reforming all areas of accounting, including accounting for financial results. That is why now, in accordance with the National regulations (standards) of accounting, to reflect income and expenses, the Chart of Accounts provides, widely accepted in world practice, certain classes of accounts: class 7 “Income and results of operations” and class 9 “Operating expenses”.

Class 7 accounts, except for account 76 “Insurance payments” during the reporting period on the loan reflect the amount of income together with indirect taxes included in the sale price, debit – the amount of indirect taxes and write-off of net income, which is attributed to account 79 “Financial results”.

Thus, the credit of account 79 “Financial results” reflects the amounts in the order of closing the accounts of income, the debit – the amounts in the order of closing the account of expenses, as well as the amount of accrued income tax. In this case, each of the accounts of income and expenses is debited directly to account 79 “Financial results” by a separate posting.

For the accumulation of net profit of the enterprise in the Chart of Accounts provides a separate account 44 “Retained earnings (uncovered losses)” on the credit of which reflects the increase in profit from all activities, and the debit – losses and use of profits …

Reforming the accounting of financial results and the construction of a new Chart of Accounts is associated with a new form of statement of financial performance, in which income and expenses of the enterprise are reflected in separate lines, according to activities (see section 1.2).

Information on income and expenses is transferred to the Statement of financial performance from Journals No. 6, which is maintained on the credit of income accounts and No. 5 and No. 5A, which are intended for the accumulation of information on expenses of the reporting period. The relationship of the structure of the new Chart of Accounts with other forms of reporting allows you to directly transfer amounts from accounts to the appropriate lines of financial statements, which simplifies the process of filling out reports, and significantly expands the possibilities of automating this process …


Business results: economic analysis. Abstract

Analysis of the dynamics of technical and economic indicators. Analysis of output. Analysis of sales volume. Analysis of financial results

The term “Analysis” literally means the decomposition of the object under study into separate parts (elements), the internal components (imaginary or real) inherent in this object. Analysis acts in dialectical unity with the concept of “synthesis” – the connection of previously decomposed elements of the object under study, into a single whole.

Dialectical tandem analysis-synthesis is understood as a synonym for all kinds of scientific research. In any field of scientific knowledge, in any field of human activity (political, international, social, social, environmental and others) it is impossible to do without analysis-synthesis.

Analysis-synthesis as the main essence of the process of cognition is widely used by many sciences. But the analysis of the economy, the analysis of economic activity and its final results – the field of purely economic analysis. Analysis in a broader sense deals with the theory of economic analysis; in professional – economic analysis of financial and economic activities.

The modern formation of a market economy determines the development of analysis primarily at the micro level – at the level of individual enterprises, their internal structures and units, as these smallest links form the basis of a market economy.

Analysis at the micro level is filled with absolutely specific content, because it is directly related to the daily financial and economic activities of enterprises, specific production tasks and problems.

Nowadays, when market relations are being formed and market economy mechanisms are being established, it is necessary to constantly analyze the justification and implementation of business plans, detailed analysis of production and marketing opportunities, clarify domestic and foreign economic factors affecting output and sales, analyze the ratio of supply and demand, to analyze the quality of products, to analyze the cost of living and materialized labor with the necessary detail and analysis of the final financial results of the enterprise.

Thus, in this section of the work the greatest attention will be paid to the analysis of financial and economic activity of a particular manufacturing enterprise.

Related Posts

× گفتگو