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Determining the financial result: accounting procedure, accounting entries
Determining the financial result: accounting procedure, accounting entries

Each organization carefully monitors such an indicator as the financial result. Based on its analysis, it is possible to draw a conclusion about the effectiveness of the organization. The definition of the financial result is carried out according to a certain methodology. The procedure for accounting for income and profit, accounting entries will be discussed further.


Determination of the financial result of the organization's activities occurs according to a certain methodology. This allows you to identify the performance indicator of the enterprise in the reporting period. The level of increase or decrease in profit for a certain period of time is estimated.

determination of the financial result

The basis for the calculations is the amount of sales of goods or services provided by the organization. The final result also depends on the amount of property of the organization, transactions outside the sale of basic goods and services.

Profit (loss) is calculated as the difference between the amountoperating and non-operating income. At the same time, they represent a set of funds received for the sale of works, goods or services at a market price. At the same time, excise taxes and VAT are not taken into account in the cost. The cost is also subtracted from the total amount. These are the costs incurred by the organization during the production and sale of its products.

In the course of determining the financial performance of the enterprise, the dynamics of this indicator, as well as the factors that led to such changes, are determined. This indicator is affected by three groups of reasons:

  1. Profit from sales.
  2. Extracurricular income.
  3. Profit from another type of sale.

Profit from sales depends on the volume of sales and product structure, as well as on the cost and prices of finished goods. Indirectly, the listed indicators are influenced by the quality of products, services rendered or work performed. The situation in the industry, changes in prices in the sales market also have an impact on the financial result. Inflation is one of the factors affecting profits.

The amount of non-operating expenses is affected by the following:

  • income received from equity participation;
  • leasing land or fixed assets;
  • received or paid pen alties, fines;
  • loss on write-off of bad receivables;
  • financial losses from natural disasters;
  • income from securities (stocks, bonds) and deposits;
  • loss or income from financial transactions.

Another type of profit is affected by income from the sale of goods and materials, fixed assets or intangible assets.

Types of company results

Considering the definition and accounting of financial results, it is worth paying attention to the varieties of such an indicator. It could be profit or loss. If, after deducting costs from the organization's income, a positive number remains, then the company's activities were effective. The organization makes a profit and is recognized in the reporting period as break-even. If the costs exceeded the income, this indicates an incorrect organization of the main activity. The company is recognized as unprofitable in the period under review.

Types of company results

Determining the financial result from the sale of finished products, semi-finished products, as well as profit from investment activities is used in the analysis of the economic condition of the organization. This indicator is used when calculating the following coefficients:

  • net profit change rate;
  • profitability indicators;
  • transaction cost analysis;
  • asset management research;
  • debt service indicators;
  • liquidity;
  • market figures.

Determination of the financial result of the organization's activities is carried out with a certain frequency. This information is of interest to the owners, managers of the company, as well as potential and real investors.

In commodity production, one of the main categories is income. Hedirectly involved in the formation of profits. From the income subtract the amount of costs spent to obtain it. The result is a profit. This process is influenced by a number of factors and complex processes, such as GDP distribution policy, social causes, etc.

Profit is regarded as an indicator of the value of the surplus commodity. Income is obtained at the moment of implementation of the value set by the manufacturer. This is a total score. It reflects the success of the organization in market conditions. But at the same time, income is formed at the micro level. Depending on the area of ​​receipt, there are the following types of profit (loss):

  • gross;
  • from sales;
  • before tax;
  • clean.

Profit functions

Determining the financial result from the sale of finished products, property, and other valuables allows managers and owners of the company to make adequate decisions about the direction of the organization. If the indicator decreases, the loss is determined, the reasons for such a result are established. It is also important to look for ways to increase the amount of profit. After all, it becomes the main goal of any company in a market economy.

Definition and accounting of financial results

Profit has two main functions:

  • Estimated. When using relative or absolute profit indicators, it is possible to assess whether the company worked effectively in the reporting period. Also, with the help of such techniques, other aspects of the organization's activities are determined. This, for example, canbe the profitability of the use of labor, material or production resources, labor productivity and so on.
  • Stimulating. According to the profit indicator, it is determined how satisfied the employees of the organization are with their own activities, whether they can satisfy their own social needs in the course of performing the tasks assigned to them. In the presence of net retained earnings, the organization can engage in charitable activities, pay dividends to its shareholders. The profit is used to finance the expansion of the organization's activities, introduce innovative technologies, and develop production methods and technologies.

In addition, it is worth noting that the company's value largely depends on the net profit indicator. This directly affects its well-being, the conduct of competition in the market. Therefore, the determination of the financial result of the enterprise is carried out at different stages of production. If negative factors hindering development are identified, they are eliminated. To do this, develop comprehensive measures aimed at increasing the amount of net profit.

Calculation principle

In the course of determining and analyzing financial results, not only income and net profit are evaluated, but also their structure. This is an important work that is carried out in assessing the financial stability and profitability of an enterprise. Income is a collective measure. It incorporates the results of work in various areas of the company's activities (core, financial, investment).


In order to calculate net income, several intermediate types of income need to be defined.

Thus, the gross profit is obtained if the cost price is subtracted from the proceeds from the sale of products. Excises and VAT are also preliminarily deducted from the proceeds. The result is profit or loss.

If you subtract selling and administrative expenses from gross income, you get a profit or loss on sales. This allows you to determine at what stage the financial result was influenced by more favorable or unfavorable factors.

Further, income received from participation in other organizations, interest receivable, and other income are added to the result. This value subtracts the amount of interest payable, as well as other expenses. The result is profit before tax. This is a mandatory step that cannot be skipped in the course of determining the financial results of the organization.

When income tax is paid from the result, as well as permanent tax liabilities, net profit is obtained. This is the final financial result of the organization.

Further, the company distributes net income in accordance with its needs. These funds are used to form a reserve fund, pay dividends, and finance the development of the enterprise.

Sources of information for generating the report

In the course of determining the financial results of the company's activities, a number of accounting procedures are carried out. This indicator is characterized by many criteria.

financial results accounting definition

For example, it can be the coefficient of change in equity, debts to creditors, debts of debtors, etc. In accounting, all the necessary information is reflected in the accounts. It allows you to get accurate data for reporting. Information is summarized, which allows you to organize accounting correctly. The main accounts are:

  • 90 - "Sales". It is used to bring all information about income and expenses to a single indicator. As a result, the sum of the cost of finished products and the profit from its sale is provided. Information about the purchased equipment, goods, communication services, transportation is presented here. This also includes the amount of profit from participation in the authorized capital of other companies.
  • 91 - "Other expenses and profits." This account displays data on the company's income and expenses for a certain period of time.
  • 94 - “Shortage, expenses arising from damage to material assets.” It reflects information about losses, including monetary ones, that are associated with damage to property. These data can be identified and reflected on the account in the process of storage, sale, manufacture of products. This does not include losses resulting from a natural disaster (reflected on account 99).
  • 96 - "Future Reserves". Provides data on the amount of funds reserved, including for production and sales. This, for example, may be the cost of maintenance or repair of equipment, other items of fixed assets,as well as bonus payments for years of service, vacation accruals, production costs and more.
  • 97 - "Deferred Costs". This is data on expenses that occurred in the reporting period, but will be attributed to future periods. For example, this account displays the amount of costs for preparing production, repairing fixed assets, carrying out environmental protection measures, and so on.
  • 98 - "Deferred Profit". All amounts of profit that were received in the reporting period are summarized, but require attribution to the future period.

On the listed accounts, sales are recorded and the financial result is determined. Some of them have sub-accounts. This is also taken into account in the course of reporting.

Sub-accounts for reporting

In accounting, the definition of financial results is carried out by summarizing information not only on the main accounts, but also on sub-accounts. So, in the course of such work, the following data are taken into account:

  • 90/1 - "Profit".
  • 90/2 – “Cost of sales”.
  • 90/3 – “VAT amount”.
  • 90/4 - "Excise".
  • 90/5 - “Export duties”. This account is used by organizations that export products abroad. They provide for the presented cost item.
  • 90/9 - “Income (loss) from the activities of the organization.”
  • 91/1 – “Other income”.
  • 91/2 – “Miscellaneous expenses.”
  • 91/9 - "Balance of expenses and income."

Determination of the financial results of the enterprise's activities based on the results obtained using the accountsinformation has a number of nuances. The reporter should pay attention to them.

Some nuances of obtaining information for reporting

Determination of financial results from the implementation and other business activities of the organization has a number of features. They are reflected in accordance with the established methodology. The accounting department must correctly complete the relevant postings. The financial result is determined by summarizing the information received from the relevant accounts. To do this, the accountant must take into account the revenue, for which an entry is made according to Dt 62 and Kt 90/1. When using this posting, the amount of profit from the sale of finished products or from the services provided is reflected.

Next, another posting is performed. You need to write off the cost of production. To do this, the accountant makes a posting according to Dt 90/2 and Kt 41 (45, 20, 43).

When determining other expenses and incomes, the income that may be associated with:

  • paying for the use of an organization's assets over a period of time;
  • by granting certain rights for an appropriate remuneration;
  • participation in the authorized capital of other companies;
  • write-off or sale of fixed assets;
  • carrying out commercial operations with containers;
  • other.

In the debit, 91 accounts reflect expenses related to payment for the provision of the organization's assets for temporary use, loan costs, as well as for the maintenance of production facilities.

Debit 94 accounts displayedshortage that arose due to the loss or damage to material assets. At the same time, the real cost of such values ​​is displayed. But at the same time, the amount of depreciation is deducted from the amount reflected in this account. If the valuables were partially damaged, the amount of damage is also reflected in this account.

On credit 94 accounts take into account shortages or damage to material assets. It also displays the natural losses specified in the contract. If the amount turned out to be more than it was provided for by the norm, then they are recorded on account 73. If there are no guilty parties, then the damage is reflected on account 91.

Financial Statement

There is a certain procedure for determining the financial result. The organization draws up a special document in the prescribed form. It is called the income statement. Most often it is made for one year. Some companies prepare a report for six months or a quarter. There is a certain methodology for filling out the form and determining the financial result.

determination of the financial result of the organization's activities

Line 2110 “Sales proceeds” indicates the final amount of profit from the main activities of the organization. The criteria for determining its value are the amount of income from the sale of goods, works or services. So, for example, if a company leases fixed assets, this activity is the main one, then the profit received in this way is reflected in the “Revenue” line. Otherwise, this amount should be shown on the other income line.

Bline 2110 indicates the cost of sales. This includes costs that relate to operating profits. These are the costs incurred in the reporting period for the production of finished products.

Administrative costs (line 2220) include the cost of remuneration of managers. It also displays the amount of taxes, other deductions. If the company provides services without being engaged in production, you need to display such expenses in the line of general expenses. At the same time, in line 2220, the amount of general business expenses may not be indicated at all.

Other company income

In the process of determining the financial result, other types of income are also reflected. So, in line 2310 of the financial statements indicate the amounts received from participation in the authorized capital of other industries. For some companies, shareholding is the main activity. Therefore, the amount of dividends received from holding securities, such organizations should display in column 2110.

determination of the financial result from the sale

Income from other investment activities is displayed in line 2320. Here, the amount of interest received by the company on its deposits, as well as debt obligations, bills, etc. is recorded. If investment activity is the main investment activity for the company, income from it is also indicated on line 2110.

If a company has a different type of profit that did not fall into any of the lines of the report, such an amount is displayed in line 2340. This, for example, can be pen alties, fines paid by third-party entities in favor oforganizations. It also includes income from the sale of fixed assets, spread (exchange difference), other income.

Other expenses

When determining the financial result, it is important to correctly allocate expenses and incomes by items in accordance with the peculiarities of their occurrence. In addition to the costs mentioned above, the company may incur interest costs. Such amounts are shown on line 2330 of the income statement. Here you need to display the company's debt, except for expenses included in the value of investment assets.

determination analysis of financial results

If the group of costs that arose in the reporting period cannot be attributed to any line, it is reflected in column 2350. These are other costs that have a specific area of ​​occurrence.

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