Loss. What is this?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Often, citizens are faced with the concept of "loss". You should familiarize yourself with it in detail, since at any time individuals and legal entities may face a situation in which they will suffer material damage.

Definition of concept

Loss is the damage caused to one citizen by the illegal actions of another. Its concept and composition can be supplemented depending on the type of activity of the subject, so it should be carefully studied. It is important to note that real losses are the damage received by a person as a result of the breakdown or destruction of property, as well as the costs aimed at restoring it. It is worth familiarizing yourself with the concept under consideration in detail, as well as finding out what to do in cases where a violation of rights is committed against a citizen, resulting in damage.

The concept of loss in business activities

From the point of view of economic activity, a loss is a loss that is expressed in monetary terms. They are also a decrease in material resources, which occurs as a result of the fact that expenses exceed income. A participant in economic activity who has violated obligations or established requirements must, without fail, compensate for losses to the entity in respect of whichviolation of rights or legitimate interests. The legislation establishes the following components of losses:

• value of property damaged or lost;
• expenses incurred by a person due to non-fulfillment of obligations by another participant in the activity;
• lost profit is also considered a loss if it occurred as a result of non-fulfillment of obligations by a party to economic relations;
• material compensation for moral damage.

For certain types of business obligations, the legislation may establish limited liability for improper performance or non-performance of obligations stipulated by the agreement. The claim for damages may be satisfied on a voluntary basis. However, if this did not happen, the business entity should apply to higher authorities to resolve the conflict in court.

The concept of loss in civil law

From the point of view of civil law, a loss is the real damage received by a citizen as a result of the actions of another person. It can also be seen as a lost profit.

If we consider the concept in general, the loss is the costs incurred by a person whose rights have been violated or he will have to make them to restore these rights or damaged property. It is also determined by the legislation that it may be the amount of lost income, which, in the absence of a violation of rights, would belong to a citizen.

WhenIn this case, the person who committed the offense undertakes to compensate for the damage. If he received an additional benefit, he undertakes to pay it in no less amount. It is worth noting that the Civil Code proceeds from the general principle of full compensation for the losses caused to the citizen. He has the right to demand compensation for material damage in full, unless otherwise provided by the contract or law. In this case, knowledge of the law is most useful, as a person whose rights are violated will know what to do in the event of such situations.

Profit and loss of organizations

Balance sheet profit and loss is the final financial result, which is determined for the reporting period. It is identified on the basis of the accounting of enterprises and the assessment of balance sheet items. Profit and loss of the organization=this is the amount of money received from the sale of products, fixed assets and other property of the enterprise, as well as the costs of their implementation.

The profit or loss identified in the reporting year is included in its balance sheet, even if they relate to earlier operations. It is also worth noting that the balance sheet profit is the organization's income before deductions and deductions.

After reading this topic, individuals and legal entities can be sure that their rights and interests are protected by law.