Distributed profit in the balance sheet. What is retained earnings in the balance sheet

To account for retained earnings (uncovered loss), account 84 is used " Undestributed profits(uncovered loss) ".

At the end of the reporting year with the final entries in December, the amount of net profit (loss) revealed by comparing the debit turnover and the credit turnover on account 99 "Profits and losses" is transferred to account 84 "Retained earnings ( uncovered loss) ". Account 99 "Profit and Loss" is closed and as of January 1 of the year following the reporting year, it has no balance.

The amount of net profit of the reporting year is written off:

Dt 99 Kt 84.

The amount of the net loss of the reporting year is written off:

Dt 84 Kt 99.

Analytical accounting for account 84 "Retained earnings (uncovered loss)" is organized in the context of: directions of use of funds of the organization's retained earnings; sources of repayment of losses of the organization, etc.

In the next reporting year, based on the decision general meeting shareholders (participants) net profit is distributed. It can be used to pay dividends to shareholders and founders, to recover losses from previous reporting periods and for other purposes.

In accordance with the legislation of the Russian Federation, joint-stock companies and organizations with foreign capital reserve capital at the expense of the profit remaining at the disposal of the organization in a specified percentage of authorized capital... The rest of the organizations form the reserve capital voluntarily in accordance with the constituent documents. Capital reservations are especially important to provide guarantees for the fulfillment of obligations under the creditors' rights of claim.

When forming the reserve capital at the expense of net profit, an entry is made:

Dt 84 Kt 82.

In joint-stock and business companies, income from property is paid to shareholders, founders in the form of dividends, which are part of the net profit distributed among the owners for each share or in proportion to the share of the founder in the authorized capital of the business company. Dividends are paid quarterly, semiannually or annually based on the results of the year.

To account for settlements on dividends, an active-passive account 75 "Settlements with founders" is used, to which subaccount 2 "Settlements for the payment of income" is opened. The accrued amounts of dividends are reflected in the accounting entry:

Dt 84 Kt 75/2.

Dividends accrued legal entities, are taxed at the source of payment, and accrued individuals, - at the rates of personal income tax.

Withholding tax on dividends reflects:

Dt 75/2 Kt 68.

Dividends accrued to individuals working in this organization are reflected on account 70 "Payments with personnel for wages" as part of the income of employees for the calendar year. In this case, accounting entries are made:

Dividends accrued

Personal income tax withheld

Dt 70 Kt 68.

The procedure for the payment of dividends on shares is announced upon issue and can only be changed by the general meeting of shareholders. Payment of dividends is reflected:

Dt 75/2, 70 Kt 50, 51, 52.

Interest and penalties are not charged on unpaid and unreceived dividends. Dividends not received within three years are accounted for as part of other income of the joint-stock company:

Dt 75/2, 76 Kt 91/1.

Write-off from the balance sheet of the loss of the reporting year is reflected:

Dt 80 Kt 84 - when bringing the amount of the authorized capital to the value net assets organizations;

Dt 82 Kt 84 - when the reserve capital funds are used to repay the loss;

Dt 75/1 Kt 84 - when the loss of a simple partnership is repaid at the expense of earmarked contributions from its participants.

Analytical accounting for account 84 "Retained earnings (uncovered loss)" is organized in such a way as to ensure the formation of information on the areas of use of funds. At the same time, in the analytical accounting, retained earnings funds used as financial support for the production development of the organization and other similar measures for the acquisition (creation) of new property and not yet used can be divided.

TASK

Reflect in the accounting transactions for reformation of the balance sheet and determine the value of the balance of account 84 "Retained earnings (uncovered loss)" subject to the following conditions.

90-1 "Revenue" - 10,986,000 rubles;

90-2 "Cost of sales" - 8,450,000 rubles;

90-3 "VAT" - 1,520,000 rubles;

90-9 "Profit / loss from sales" -?;

91-1 "Other income" - 3,650,000 rubles;

91-2 "Other expenses" - 3,780,000 rubles;

91-9 "Balance of other income and expenses" -?;

99 "Profit and Loss" -?;

The amount of conditional income tax expense for the reporting year -?.

1. Define financial results from sales:

10,986,000 - 8,450,000 - 1,520,000 = 1,016,000 rubles.

Dt 90/9 CT 99 - 1,016,000 rubles. - received profit from sales

2. Determine the financial result from other operations:

3,650,000 - 3,780,000 = - 130,000 rubles.

Dt 99 Kt 91/9 - 130,000 rubles. - received a loss from other operations

3. Determine the amount of URNP (conditional income tax expense):

(1,016,000 - 130,000) x 20: 100 = 177,200 rubles.

Dt 99 Kt 68 - 177,200 rubles. - accrued URNP

4. Let's determine the final result of the enterprise for the year:

1,016,000 - 130,000 - 177200 = 708,800 rubles. - final result

Dt 99 Kt 84 - 708 800 rubles. - the amount of retained earnings for the reporting period has been determined

Retained earnings are the percentage or amount of net income that was not paid as dividends but was retained by the company for the purpose of reinvesting in operating activities or paying off debt obligations. Retained earnings are shown as equity ( share capital) on balance. The retained earnings formula is calculated by adding the retained earnings of the prior period to the net income of the current period (or deducting in the case of losses) and deducting the dividends paid.

Retained earnings are also called retained surplus funds.

Investocks explains "retained earnings"

In most cases, companies maintain a surplus (surplus) of income for the purpose of investing in those investment opportunities where the company can generate growth, for example, investments such as buying new equipment or spending on research and development of existing production can have a significant effect on the company's growth.

Retained earnings can also be negative. This may be due to the fact that the loss of the current financial year is greater than the retained earnings of previous years. In such cases, the retained earnings indicator is usually called scarce.

The value of retained earnings on the personal account is adjusted every time an adjustment is made for income or expenses.
The amount of retained earnings is very often the subject of disputes between members of the company's board of directors and management. This is due to the fact that the benefit to shareholders is to receive maximum dividends, while the company's management is more profitable to reinvest retained earnings in new projects to receive maximum bonuses. In addition, often when paying lower dividends, if the yield on such shares is below the rate of return required by the shareholders, they will sell the shares. With this development, the market price of the shares will fall, which will reduce the market capitalization of the company. Thus, the management of the company must strike a balance between the possibilities of reinvesting retained earnings and the rate of return required by shareholders.

V modern economy all businesses exist on cash received from the sale of goods, works or services. But the members of the society must also have their own income from the activities of the company. For these purposes, there is a special balance line - retained earnings.

Profit and loss of the company

Any company starts its activities to generate income. The members of the society expect to have additional money, regardless of whether they will work in this enterprise or not. Retained earnings in the balance sheet is the remaining income of the company after all debts to suppliers and employees of the company have been paid.

However, when implementing entrepreneurial activity the organization may incur losses, for which the members of the company are also responsible. tax code allows you to increase the net assets of shareholders (participants), the repayment of uncovered loss is also suitable. The help of shareholders (participants) is vital at the very moment when the company incurs losses, since this threatens bankruptcy and liquidation of the company. Therefore, the owners' coverage of losses is the most frequent case of restoration of the value of the company's net assets.

retained earnings in equity of the organization

To clarify this aspect, let us refer to the Accounting Regulations governing the procedure for monitoring financial issues at enterprises. In accordance with clause 66 of PBU, retained earnings in the balance sheet are the firm's equity capital. It is formed not due to the contributions of participants, but due to the efforts of the enterprise itself, being at the same time a factor in the growth of the well-being of the organization and its owners. In other words, retained earnings are a source of equity capital not external, but internal origin.

The resulting profit can be spent on the distribution of dividends between the participants or remain at the enterprise in the form additional capital, cash or fixed assets for the further development of activities and repayment of losses.

What is retained earnings

The "Retained profit / loss" account is required to store information about the presence and movement of the amount of this profit or loss of the company on the balance sheet of the enterprise.

It is worth noting that the source of income tax payment, tax sanctions is after the formation of the financial result. Retained earnings on the balance sheet are the source of contributions to funds. In this case, we are talking about the use of net profit.

When they say that income tax, dividends are paid at the expense of net profit, meaning the last profit after tax, this is also true. However, in accounting, the formation of net profit during the reporting period and its use with the help of an account for accounting for retained earnings for the statutory purposes of the enterprise is clearly divided.

Disposal of retained earnings

The right to dispose of the net profit belongs to the owners of the enterprise, which is reflected in the relevant regulations. The owners of the enterprise have the right to spend the retained earnings for various purposes, for example, to encourage employees, charity, to finance social events, cultural and sports events, etc. However, in most cases, this profit goes either to dividends or to improve and develop the business.

The authorizing document for transactions on the distribution of profits is the protocol of the participants in the enterprise. In addition, entries can be made on the basis of the provisions of the charter, if they determine the areas of use of net profit and establish deduction standards. Any other expenses bypassing the will of the owners of the enterprise (including the so-called expenses that do not reduce taxable profit) cannot be deducted from the retained profit / loss account.

The distribution of profits is carried out at the annual meeting of the participants. If the enterprise distributes net profit for 2013, then transactions are made in 2014, when the meeting of participants (shareholders) is held.

Retained earnings: balance sheet and transactions

So, retained earnings in the balance sheet is an active-passive account. On it, retained (by nature - net, that is, received after tax) profit or uncovered loss is formed. The debit of account 84 reduces the equity capital of the enterprise, the credit balance, accordingly, increases. The right to dispose of the net profit belongs to the owners of the enterprise. Of all the others component parts profit of equity capital is the most free to use, since the list of directions for its expenditure is open. However, it must be remembered that this does not give the enterprise a reason to freely, bypassing the will of shareholders (participants), spend it for purposes not provided for by the charter and other documents of the enterprise.

In analytical accounting, separate subaccounts should be opened for account 84, including "Dividend accrual", "Contributions to reserve capital", "Revaluation of fixed assets", etc. It is also rational that the profit (loss) of the reporting year and retained last year's profit. In addition, on account 84 (since there is no separate balance sheet account in the Chart of Accounts), you can take into account various funds created from net profit at the initiative of the enterprise: a special fund for corporatisation of employees, a development fund, etc.

Retained earnings as a source of production development

Of great interest is the fact that the Ministry of Finance recommends analytical accounting separately reflect that part of the net profit, which is directed to the development of the enterprise. As you know, the acquisition of fixed assets is carried out at the expense of property (cash), and there are no obligatory entries as indicated by the source. This entry does not lead to a decrease in retained earnings and the size of the company's net assets. An entity can easily prove that property, plant and equipment were acquired solely from profit and not otherwise. You can also identify based on the analysis of the structure of the balance sheet. This analysis assumes that investments are primarily made at the expense of net profit, in the second - at the expense of long-term loans, and in the third - at the expense of other payables.

The best location of profit on the balance sheet

It is more profitable for an enterprise to maintain its own capital precisely in net profit, and not in the authorized capital or Profit, it is possible to quickly recover losses, replenish the authorized capital if it is increased by law minimum size, increase other funds in equity. The higher the amount of retained earnings, the further the company is from the threat of bankruptcy, and the more optimistic its prospects.

84 account in the hands of the chief accountant

In conclusion, it should be noted that the retained earnings account is entirely in the hands of the chief accountant. Yes, no one, except for the members of the company, can dispose of the property of the company, but only the chief accountant determines the calculation of the organization's profit, the correctness of the accrual of certain amounts and double entry on accounts accounting... Only the chief accountant can tell the members of the society how to act correctly in a given situation, where and what amounts of retained earnings to send.

Retained earnings represent the portion of a company's income that is not paid to shareholders as dividends. This money is usually reinvested in the development of the company or used to pay off debts. Usually retained earnings for a given reporting period is determined by subtracting dividends paid to shareholders from the company's net income. The calculation of retained earnings is the responsibility of accountants (and this is an important part of their job), but knowing the basic principles, you can do it yourself!

Steps

What is retained earnings

Find out where the retained earnings of the company are recorded. Actually, this is the account that is displayed in balance sheet company under the heading "Share of a shareholder in the funds of the enterprise." The funds held in this account are the total profit of the company since its inception, which has not been distributed among shareholders in the form of dividends. If this account went into negative territory, this situation is called “accumulated deficit”.

• Knowledge of the retained earnings accumulated by the company from the moment of its registration, allows you to determine the balance of retained earnings after the next reporting period. For example, if the cumulative retained earnings of your company is 12 million rubles, and during the current reporting period you deposit 6 million rubles into this account, then the new amount of accumulated retained earnings will be 18 million rubles. In the next period, if retained earnings are 15 million rubles, this account will already have 33 million rubles. In other words, since the creation of the company, you have been able to do enough so that after the payment of salaries, operating costs, dividends to shareholders, another 33 million rubles will remain “saved” for the company.

1. Try to understand the relationship between retained earnings of a company and the policies of its investors. On the one hand, investors in a profitable company expect a good return on their investment. On the other hand, they are interested in the development of the company, because in this case it will bring more profit, which means that their dividends will increase. For a company to grow and develop, it must invest its retained earnings in itself, increasing its efficiency and / or expanding the business. If successful, such reinvestment in the long term will lead to an increase in the company's profitability and the price of its shares, that is, investors will earn more money than if they initially demanded large dividends.

   You need to know what factors affect the size of retained earnings. Retained earnings may vary from one reporting period to the next, but this is not always the result of changes in the company's earnings. The following are the factors that can affect the balance of retained earnings:

   • Change in net profit
   • Change in the amount of funds paid as dividends to investors
   • Change in the cost of goods sold
   • Change in administrative costs
   • Change in taxes
   • Changing the company's business strategy

   Calculation of retained earnings of the company

   1. Collect the required data from financial statements companies. Companies are required to formally document their financial history... In general, the easiest way to calculate current retained earnings is not manually, but using these official figures of retained earnings accumulated to date, net income and dividends paid. The capital of the company and its retained earnings up to the period of the last record should be shown in the current balance sheet, while the net profit is shown in the current income statement.

      • If you can get all this information, all you have to do is calculate retained earnings using the formula: "Net Income - Dividends Paid = Retained Earnings".
        • To find the cumulative retained earnings of a company, add the retained earnings for the current period to the amount in the account at the end of the previous reporting period.
      • For example: let's say that at the end of 2011, your company had 150 million rubles of total retained earnings on its account. In 2012, the company earned RUB 15 million in net profit and paid RUB 5.5 million in dividends. In this case:
        • 15 - 5.5 = 9.5 - retained earnings for this reporting period
        • 150 + 9.5 = 159.5 - total retained earnings

   2. If you do not have access to information on net income, you can calculate retained earnings manually, although this process is more time consuming. Start by looking for the company's gross margin. Gross profit is displayed in a multi-step income statement. It is determined by subtracting the value of the goods sold by the company from the income received from these sales.

      • Suppose that the company earned 1,500,000 rubles on sales during one quarter, but it had to spend 900,000 rubles to buy the goods needed to form 1,500,000 rubles. Gross profit for this quarter was 1,500,000 - 900,000 = 600,000.

   3. Calculate your operating income. This is the company's income after covering all sales and operating (running) costs such as salaries. To calculate this figure, subtract all operating expenses (other than the cost of goods sold) from gross profit.

      • Let's say that, with a gross profit of RUB 600,000, the company spent RUB 150,000 on administrative expenses and wages employees. The company's operating income for this quarter is 600,000 - 150,000 = 450,000 rubles.

   4. Calculate your net income before taxes. To do this, subtract interest, depreciation and amortization expenses. Depreciation and amortization, that is, the decline in the value of assets (tangible and intangible) during their service life, are recognized as an expense in the income statement.

Undestributed profits is part of the capital of the company. She is reflected section III"Capital and reserves" of the balance sheet. Equity is precisely the difference between the assets and liabilities of the organization. However, in the case where the assets and liabilities of the company are related to real objects, capital acts as an abstract financial value, reflecting from what sources the company exists: due to the statutory, reserve, or additional capital retained earnings.

For example, in the Chart of accounts of financial and economic activities of organizations approved by the Order of the Ministry of Finance of Russia dated 31.10.2000 N 94n - profit is called the source of financial support for the production development of the company. Therefore, if there is a component in the company's capital in the form of retained earnings, it is a good sign, speaking of the excess of income over expenses.

Shown on the credit of account 84 is the amount of net profit that was received for the entire period of the company's activity, and not only according to data for Last year... This value is the end result of the organization's activities for the entire period of its existence. The owners have the right to use this accumulated profit at their own discretion.

By the credit balance of account 84, you can determine whether the organization's profit was not sent to withdraw funds from circulation.

How to determine the amount of retained earnings

The calculation of retained earnings is fairly straightforward. For him, it is enough to substitute the values ​​in one of the formulas below, while knowing the amount of net profit / loss of the organization.

To calculate the retained earnings of a company, it is necessary to know and take into account the following indicators: retained earnings at the beginning of the period under review, net profit (Net Income or Net Profit) or net loss (Net Loss) and the amount of dividends paid.

After collecting all the necessary data for the calculations, the obtained values ​​must be substituted into the following formulas:

RE1 = RE0 + Net Income - Dividends, where RE1 / RE0 - retained earnings at the end / beginning of this period;

Net Income - net profit;

Dividends - dividends that have been paid to shareholders.

If the company for the current period received not a net profit, but faced a net loss, then the following calculation formula is used:

RE1 = RE0 - Net Loss - Dividends where, as it has already become clear, Net Loss is a net loss.

Who has the right to use retained earnings

The distribution of the company's profits, the decision of what expenses need to be made at its expense, can only be carried out by the owners of organizations - participants or shareholders. Consequently, the accounting of the decision of the shareholders (participants) will depend on the instructions recorded by the minutes of the general meeting given to the company's management. But many, when making this decision, continue to face certain errors. It is the accountant who is able to prompt correct solution to the participants and shareholders of the company.

What can the organization's retained earnings be directed to?

The procedure for distribution of profits is regulated by the Laws on JSCs and LLCs. In the case of accounting, it is said about what unallocated funds can be spent on, only with an annotation to account 84 in the Chart of Accounts. There are no longer any mentions in the accounting of possible ways use of retained earnings.

Therefore, the use of retained earnings is possible for the following tasks:

1) Reserve fund

The law stipulates for JSCs the obligation to form a reserve fund at the expense of net profit. The size of the reserve fund must be at least 5% of the authorized capital of the company. The funds of the fund are used to cover losses and repurchase public shares, and redeem their own bonds.

Unlike JSCs, limited liability companies have the option of voluntarily creating a reserve fund. With this amount of the reserve, the amount of annual deductions to it and the purpose of using the funds are indicated by the charter of the company.

The reserve fund is created by posting:

Debit 84 "Retained earnings (uncovered loss)" Credit 82 "Reserve capital"

Like retained earnings, it is also reflected in the balance sheet in section II "Capital and reserves" on page. Consequently, there is an actual transfer of a part of net profit to another item of capital. However, at the same time, the structure of the balance sheet is improving, because the owners are actually prohibited from withdrawing funds from the company's turnover to the amount of the formed fund. The reserve fund can be considered a certain financial safety cushion in the activities of the organization.

Putting aside in two funds

Viacheslav Tishin,

general manager company "Tridit", Samara

Every month we save 5-15% of the profit (depending on the current situation in the company) in two funds. The first fund is accumulative, intended for important, unforeseen expenses. Including funds required to replace failed equipment or components. And the second is an investment fund. Designed for the planned renewal of our assets. We also use it when opening and launching new lines of business.

2) Dividends

The profit that remains after the formation of the reserve fund can be used by the owners to pay dividends. It should be borne in mind that this is the most typical and widespread variant of spending funds of profit. When dividends are accrued, retained earnings decrease. When dividends are paid, the assets of the organization are reduced. The accrual of dividends in accounting is reflected by the following entry:

Debit 84 "Retained earnings (uncovered loss)" Credit 75 "Settlements with founders"

You can reflect the payment of dividends in money with the following entry.

Debit 75 "Settlements with founders" Credit 51 "Current accounts"

In case of preliminary withdrawal of money from the current account for cash withdrawal, the following transaction will be used.

Debit 75 "Settlements with founders" Credit 50 "Cashier"

The payment of dividends is possible not only in money, but also in property, since this is not prohibited by law. The Federal Tax Service of Russia believes that when transferring property for the payment of dividends, VAT is required. You should also consider - for some judgments The arbitrators acknowledge that the transfer of property through the payment of dividends does not constitute a sale and is not recognized as subject to VAT.

Therefore, if the company does not include the value of the property that is transferred to the payment of dividends in the VAT base, then most likely it will be necessary to defend its position in it in judicial procedure... However, is it necessary to act this way?

Since the company decides to pay dividends in cash, but does not have them, it will first have to sell the property, including VAT, and only then transfers the funds to the shareholders. Therefore, if there are no funds, in any case, VAT will be paid, and only then it will be possible to settle accounts with the owners.

If the dividends are goods or fixed assets that are not subject to VAT, VAT is not required.

The transfer of property is reflected on account of the repayment of arrears on the payment of dividends in accounting as follows:

1) upon transfer of the goods, or finished products:

2) upon transfer of a fixed asset:

The owners of the company sometimes decide to use payments to reward employees, purchase fixed assets, and provide material assistance. Some also decide to organize consumption and accumulation funds. Can such decisions be considered correct?

Let's first analyze the nuances of spending at the expense of profit. Firstly, the current Laws on JSCs and LLCs do not establish any payments from profits to anyone other than the owners. Secondly, the Ministry of Finance of the Russian Federation has repeatedly expressed the following position: account 84 is not intended to reflect all kinds of charitable and social spending, payments of material assistance, bonuses.

The company's expenses for sports events, entertainment, recreation, cultural and educational events and other similar events, as well as the transfer of funds related to charitable activities by the organization from the position of the financial department, represent other expenses with the need to account for account 91 "Other income and expenses" ... Only the payment of dividends does not represent an expense of the organization, any other disposal of assets is an expense of the current period.

That's why material assistance, various bonuses, charity expenses can lead to an impact on the company's net profit, however, only during the period of these expenses. At the same time, they have no relation to the net profit of the last year. Consequently, all kinds of payments from net profit are considered illegal - only dividends are the exception.

If we talk about the formation of the consumption fund at the expense of net profit, it is only an echo of the Soviet accounting practice. Then the money was transferred to the funds for the development of production, which were kept in the bank separately from the organization's funds. They were used to buy fixed assets. Today, such a transfer of money for the development of production is no longer made.

The purchase of fixed assets of an enterprise is now carried out using the funds of the current account with the change of one asset (money) to another (fixed asset). At the same time, account 84 is not used in the postings. Therefore, if the owners decide on the direction of profit for the development of production with the accountant's record in accounting Debit 84, subaccount "Profit for distribution", Credit 84 "Reserved profit", this will not affect the final balance on the credit of account 84.

By and large, this posting indicates that this year the owners refused to receive dividends without withdrawing money from circulation. But thanks to this decision, the company has the opportunity to improve the structure of the balance sheet, with the provision of a more stable financial position. The change in the final balance on the credit of account 84 does not occur - therefore, no obstacles are created for the owners in the future distribution of profit, which is reflected as unallocated in the balance sheet of the enterprise.

We spend profit on product promotion and charity

Sergey Perimbaev,

General Director of the company "Russian Krepezh", Ryazan

Profit distribution after tax deductions possibly on 2 items - development and dividends. My company is a growing organism, so we use additional funds to develop our organization. We regularly introduce new products to the market with many events aimed at advertising and promotion your product. Therefore, the company, thanks to the profit, gets the opportunity to move forward.

We also strive to take care of others. Within the framework of charity program we help those in need. And in the last place are the interests of the owner of the company. If necessary, a part of the profit can be “distributed” among the business owners. But for now I am trying to act for the future without resorting to such steps.

What to do with retained earnings of past years

Another question that is relevant for owners and accountants is whether it is possible to distribute the profits of previous years to dividends? The answer in this case will be yes, there is such an opportunity.

Since neither civilian nor tax legislation there are no restrictions on the payment of dividends from the profits of the organization for previous years. Consequently, when the company “accumulates” the profit of the previous years, it can be directed to the decision of the general meeting of shareholders for payment of dividends.

The regulatory authorities do not object to such a decision either. The conclusion of the Supreme Arbitration Court of the Russian Federation suggests that the company's net profit and retained earnings are identical in economic nature. Consequently, there are no obstacles for the owners in this regard - to use for the payment of dividends not only the net profit of the reporting year, but also retained earnings for previous years.

How to control the financial position of the company

How to calculate a break-even point and calculate the amount of expenses for a week in advance, having spent only 15 minutes?

Commercial Director Magazine shares a useful business hack that will save you time.

How to analyze retained earnings

It is advisable to start the analysis of retained earnings by studying its composition and the dynamics of changes in individual items. It is necessary to include in retained earnings items of Form No. 2 “Profit and Loss Statement”: gross profit, profit from the sale of products (works, services), other income (expenses), profit before tax. You can calculate them using the formulas:

Gross profit = Revenue - Cost;

Sales Profit = Gross Profit - Administrative expenses- Selling expenses.

In a situation where profit from sale and gross profit are equal, it is reflected in accounting policies direct write-off of commercial and administrative expenses to the cost price.

Profit before tax = Profit from sale + Other expenses + Other income.

The balance on account 91 is reflected as the difference between other income and expenses. With a negative balance, the loss from other activities is determined.

Retained earnings = Profit before tax - Income tax and similar payments - Deferred tax liabilities+ Deferred tax assets.

For each listed item, its share in profit before tax is taken into account, in the case of a loss, in revenue. According to the calculated values, the factors that form the financial result can be determined, with the identification of the trend of changes, as well as their reasons, for which an economic justification must be given, with the determination of the level of the tax burden.

Particularly noteworthy are costs with a significant specific weight, which at the same time increase annually. For example, to analyze losses from the payment of fines in case of violation of contractual obligations, the reasons for which the obligations under each contract were not fulfilled are identified, it is necessary when writing off the overdue accounts receivable for losses the reasons for which the settlement and payment discipline for each debtor was not fulfilled. Defined in this case quantitative influence of these factors on the change in profit before tax:

where Pdz is a change in profit due to a change in overdue receivables;

365 - financial reporting period;

3 - term limitation period overdue debt (3 years);

PDZ - the amount of overdue accounts receivable, thousand rubles;

RDZ - profitability of using receivables;

POdz - the actual period of accounts receivable turnover, days.

The formation of the organization's retained earnings occurs mainly for income received from common types activities. Taking this into account, it is necessary to analyze in detail the profit received by the organization through the sale of products (services, works) as a whole for the organization and for certain types of goods in particular.

Information about the author and company

Viacheslav Tishin, General Director of the Tridit company, Samara. in 2002 graduated from the Faculty of Informatics of the Samara State Aerospace University named after V.I. Academician S.P. Queen. Completed MBA-Start training. Work experience in the IT field (including in the web industry) - 14 years.

Sergey Perimbaev, General Director of the Russian Krepezh company, Ryazan. Graduated from the Ryazan Higher Military Automotive Engineering School with a degree in automobiles and automotive industry, the Ryazan Institute of Law and Economics with a degree in civil and international private law, the Moscow Academy of Economics and Law with a degree in jurisprudence, completed training under the presidential program of management training for organizations National economy RF (specialty - "marketing"). Worked as a commercial director construction company"MZhK".