Statement of financial results - the result of activities for the period

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

Each enterprise, organization sets itself the task of making a profit, increasing sales, and so on. The essence of any activity should be reduced to

to a certain result. This is the result of the activity is the report on financial results. It will be discussed in this article.

Financial statement - what is it?

This report represents not only the performance of the enterprise for the tax, but also the results of this activity for the organization itself. After all, thanks to him, you can understand how much we have earned, what losses we have suffered, and so on.

Contents of income statement

• Revenue. This line provides the company's revenue from its activities, that is, the gross turnover.
• Cost - the cost of manufacturing products (services). This line displays the costs of the organization for the products themselves. Since this is a detachable line, the numbers in it, according to the reporting rule, are enclosed in parentheses.

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  Gross profit is the difference between revenue and cost. Thanks to this line, we can see the profitability of the enterprise before deducting the indirect costs of production.

• Selling expenses. This article indicates the costs of the organization associated with the sale of products (advertising, marketing). As well as the cost price, this article is taken in brackets.
• Administrative expenses. The statement of financial results includes administrative expenses, enterprise management expenses. Written in brackets.
• Profit from goods sold. An article that shows the net profit from the activity. Calculated as gross profit minus selling and administrative expenses.
• Income from other enterprises is income received from other organizations that “inject” capital in the form of dividends, irrevocable financial assistance, etc.
• Interest receivable is the interest we will receive on shares, deposits or other securities.
• Interest payable is the finance that we have to pay on loans, leasing, loans.
• Other income. Here are the incomes that are not the main character for the business.
• Other expenses - other expenses not included above.
• Profit before tax. This indicator is obtained based on the fact that costs are deducted from the above income.
• Current income tax. The indicator is written based on tax calculations.

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  Recurring tax liabilities. This indicator is included in the preparation of the income statement if there is a difference between the accounting and tax accounting data.

• Other - this is a line where amounts that affect the amount of profit are indicated, but are not displayed anywhere in the above lines.
• Net profit. The most important line, which shows the profit minus all expenses and taxes.

When and how is this report submitted?

The statement of financial results is submitted by the company every quarter (depending on the taxation system). Together with the balance sheet of the enterprise (form 1), the document described above (form 2) is submitted to the statistics and tax authorities. Failure to submit such documents entails significant pen alties.