The results of the economic activity of the enterprise, the revenue of the enterprise. The result of economic activity. Research into the process of value creation
Chapter 1. Theoretical aspects of the results
financial and economic activities of the enterprise 4
1.1 Enterprise costs and their classification 4
1.2 The essence of cost and its meaning 7
1.3 The concept of revenue from sales of products
and total revenue of the enterprise 10
1.4 The essence and function of profit 11
Chapter 2. Research analysis of results
financial and economic activities
Enterprises 12
2.1 Calculation of the cost of products (works, services) of the enterprise 12
2.2 Calculation of sales revenue
products (works, services) of the enterprise 13
Formation and calculation of balance sheet indicators,
taxable and net profit of the enterprise 16
Analysis of cost behavior and cost relationships,
sales revenue and profit
products (works, services) of the enterprise 18
Limit analysis method for calculation
maximum profit 24
Conclusion 24
References 26
NIZHNY NOVGOROD STATE UNIVERSITY
them. N.I.LOBACHEVSKY
FINANCE DEPARTMENT
COURSE WORK
subdiscipline: "Enterprise Finance"
on the topic: RESULTS OF FINANCIAL AND ECONOMIC ACTIVITIES OF THE ENTERPRISE
Completed:
4th year student
groups 13F49
Petrova S.A.
Checked:
Nizhny Novgorod
INTRODUCTION
Any enterprise is a link between the emerging needs of people and the possibilities of satisfying these needs. When created, it sets itself the task of producing goods, performing work and services for consumption and has its economic goal to create a higher result of its work in monetary terms for a certain period, or to obtain maximum profit. Although manufacturers in practice may encounter special situations that highlight the solution of problems, not ways moving towards profit maximization, or even causing contradictions with this goal: for example, sharply reducing prices to enter new markets or conducting expensive advertising campaigns to attract consumers, implementing environmental measures, etc., such steps are tactical in nature, and, ultimately, are intended to solve the main strategic task - obtaining the greatest possible profit.
Profit is the most important indicator characterizing the financial result of an enterprise. Profit determines the share of income of the founders and owners, the amount of dividends and other income. Profit is an indicator for determining the profitability of the enterprise's own and borrowed funds, fixed production assets, advanced capital and each share. Characterizing the feasibility of investing in the assets of a given enterprise and the degree of skill in its management, profit is the best a metric of his financial health.
Profit growth creates a financial basis for self-financing, expanded reproduction, solving social and material problems of the enterprise. At the expense of profits, obligations to the budget, banks and other enterprises and organizations are fulfilled. Thus, profit indicators become the most important for assessing the production and financial activities of enterprises. They are characterized by the degree of its business activity and financial well-being.
To manage profit, you need to know the mechanism of its formation and be able to determine the share of each factor of its growth or decline.
At the same time, the amount of profit is influenced by various factors that are directly related to the activities of the enterprise: the volume of production and its structure, the range of products, the quality and competitiveness of products, the rhythm of production, the level of prices applied, the rhythm of shipment, timely execution of payment documents, compliance with contractual terms, applicable forms of payment, and those not dependent on its activities: violation of the terms of delivery of the enterprise loss of material and technical resources, disruption of transport, late payment for products due to the insolvency of the buyer, etc.
Based on these factors, we can distinguish two main indicators that form the basis for calculating the amount of profit: the cost of production and sales of products (works, services) and revenue from the sale of manufactured products.
In the current state of economic instability in our country, inflation leads to the fact that profit growth occurs mainly due to the growth in the value of goods, i.e. due to the inflationary filling of profit. The price factor ceases to play its decisive role in the formation of profits with the development of competition and saturation of the market with goods, because these conditions limit the ability of producers to raise prices and make profits in this way. In the first place in this case comes the cost reduction factor, which is achieved both by increasing production efficiency and by expediently attributing a number of payment expenses from the profits remaining at the disposal of the enterprise. Excluding them from the cost of production will contribute to the growth of the final results of the enterprises, lower prices, increased budget revenues, efficient use of available resources, and increased interest in making a profit.
Thus, the problem of creating such conditions for the enterprise’s own operation and developing by producers a financial and economic policy that corresponds to these conditions, which would contribute to achieving the goal of increasing profits and optimizing them, becomes relevant. It is obvious that the solution to this problem must take place in conjunction with the improvement of tax policy, the development of entrepreneurship and market relations, so that profit can perform its inherent functions of stimulating the economy, creating an appropriate resource base for its maintenance and improvement.
Research and analysis of indicators of the results of financial and economic activities of the enterprise determined topic my job, main purpose which became: the study of the structure and calculations of these indicators, the possibility of improving these calculations, the influence of price and non-price factors on profit maximization.
To achieve this goal, it was necessary to solve a number of tasks:
2) explore the possibilities of calculating the cost of products sold, revenue and profit of the enterprise;
3) determine the factors influencing the change in the studied indicators;
4) analyze the relationship between financial results in order to improve their calculations and optimize the core activities of the enterprise.
The work consists of an introduction, two chapters, and a conclusion. At the end there is a list of references used. As an appendix, the calculation of estimates for drawing up a balance of income and expenses of an enterprise is given.
The introduction substantiates the relevance of the topic and outlines its goals and objectives.
The first chapter gives the content of the concept of costs of an enterprise and the forms of their classification, determines the composition of costs included in the total cost of production, examines the formation of revenue from the sale of products (works, services), identifies methods of accounting for revenue, reveals the concept of profit and highlights its main functions.
In the second chapter, based on the considered theoretical basis, the possibilities of calculating the studied indicators are explored, their relationship is analyzed, and a model for improving the results obtained is presented to optimize the activities of manufacturers and achieve their goal.
In conclusion, the results of the work are summed up and the results of solving the assigned problems are analyzed.
THEORETICAL ASPECTS OF THE RESULTS OF FINANCIAL AND ECONOMIC ACTIVITIES OF THE ENTERPRISE
1.1. COSTS OF ENTERPRISES AND THEIR CLASSIFICATION
An enterprise in the process of its activities makes material and monetary expenses for simple and expanded reproduction of fixed assets and working capital, production and sale of products, social development of its teams, etc. Their nature, composition and structure depend on many factors: organizational and legal form of business, industry affiliation, place occupied by the economic entity in the market for goods and capital, investment, finance new accounting policies, as well as statutory rules and the principles of behavior of economic entities in the tax, credit, insurance and stock sectors. In this regard, it is impossible to unambiguously divide the entire complex complex of expenses incurred by an enterprise into any specific groups. Therefore, it is customary to classify costs in various areas. I will dwell on these classifications in more detail.
Based economic content costs can be divided into three groups:
costs associated with making a profit;
costs unrelated to profit making;
forced costs.
The first group of costs of this classification includes costs for servicing the production process, costs for selling products, performing work, providing services, and investments. The composition of these costs can be divided into the following categories:
material costs, including the costs of raw materials and materials, semi-finished products and components, fuel and energy of all types, packaging and packaging materials, spare parts, SBP, production services of third-party organizations;
labor costs, representing cash and in-kind payments to employees of the enterprise for the normal reproduction of the workforce;
overhead costs, consisting of administration and management costs, rent, depreciation of intangible assets, auxiliary production costs, etc.;
investments representing capital investments both for the purpose of expanding the volume of own production and its technical renewal, the use of intangible assets, the creation of various cash funds and reserves aimed at the development of the enterprise, and for generating income on the financial and stock markets.
Costs not associated with making a profit include consumer costs, sponsorship, costs for charitable and humanitarian purposes. These are incentive payments to employees of the enterprise, contributions to non-state insurance and pension funds, for the development of the socio-cultural sphere and politics. These costs are used for advertising purposes of the enterprise, forming its image and reputation to attract buyers, investors and labor.
Compulsory costs consist of taxes and tax payments, contributions to state extra-budgetary funds, costs of compulsory insurance, the creation of reserves, penalties. This can also include payments to the financial and banking systems.
Based intended purpose the complex of costs of an enterprise can also be divided into independent groups:
costs for the formation and reproduction of production assets;
costs for social and cultural events;
operating costs;
costs of production and sales of products.
Costs for the formation and reproduction of production assets ensure the continuity of production and create conditions for the sale of products. These are the costs of creating, reconstructing, expanding and restoring fixed assets for production purposes.
Enterprises also incur expenses on social and cultural activities aimed at improving the qualifications of workers, training personnel, improving the social, cultural and living conditions of workers. This also includes expenses on the creation and reconstruction of fixed assets for non-productive purposes, the maintenance of clubs, kindergartens, recreation camps, and the functioning of medical institutions.
Operating costs are costs of a special purpose: carrying out scientific research, invention and innovation, revaluation of fixed assets, etc. The peculiarity of this group of costs is that they are long-term in nature, pay off over a long period and are intended to improve the quality and efficiency of production.
The costs of production and sales of products (works, services) occupy the largest share in all expenses of the enterprise. The amount of profit received by the enterprise depends on the formation of this group of costs. I will dwell on this group in more detail later.
Since one of the most important tasks of an enterprise is to generate income from the activities it performs, all costs incurred as a result of these activities must be covered by financial resources - funds available to the enterprise and intended for the implementation of current costs of expanded reproduction, to fulfill financial obligations of economic stimulation of workers, also aimed at the maintenance and development of non-production facilities, consumption, accumulation, in special reserve funds and etc. The financial resources of the enterprise are formed at the expense of its own and equivalent including funds, funds mobilized on the financial market and funds received through redistribution. Moreover, each group of costs can be repaid from various sources of financial resources.
In particular, if we consider groups of costs according to their intended purpose, then the costs for the formation and reproduction of production funds are carried out at the expense of the enterprise’s own funds, bank loans, budgetary allocations; the costs of social and cultural events are repaid from profits, budgetary and target revenues, funds from trade union bodies, etc.; sources of financing operating costs are the enterprise’s profit, budgetary allocations, funds received from customers for scientific - research work carried out under contracts; costs of production and sale of products are reimbursed after completion of the circulation of funds and are covered by proceeds from the sale of products (works, services).
If you take into account own sources of financing, then the costs incurred due to them can be divided into the following groups:
included in the cost of production by elements (material costs, labor costs, social contributions, depreciation of fixed assets, other costs);
mixed costs - costs, part of which, in accordance with established tax standards, can be included in the cost price, and the part that goes in excess of the norms is covered by net profit (interest on the loan; travel expenses; entertainment expenses; advertising expenses; formation of insurance funds)
attributable to financial results (costs of canceled production orders; costs of production that did not produce products; losses from operations with packaging; legal costs and arbitration expenses; awarded or recognized fines, penalties, penalties and other types of sanctions; costs of compensation for losses caused; amounts of doubtful debts; losses from writing off receivables for which the claim is due which has long since expired, and other debts that are unrealistic for collection ; losses from operations of previous years identified in the current year; uncompensated losses from natural disasters, including costs associated with preventing or eliminating the consequences of natural disasters; uncompensated losses as a result of fires, accidents and other emergencies; a number of taxes (property, advertising, etc.);
carried out at the expense of net profit (payment of mixed costs in excess of established standards; payment of interest on long-term loans; costs for the maintenance of cultural and social facilities, improvement of the city; costs associated with the maintenance of the provision of free services to educational institutions; financial assistance, gifts, pension supplements, additional vacations, etc.; income from enterprise securities; a number of local taxes ; formation of various enterprise funds).
If we consider production costs, they can be grouped in the following ways:
by economic role in the production process:basic(costs directly related to the production process) and invoices( general production and general business expenses);
by composition (homogeneity):single-element(consisting of one element - wages, depreciation, etc.) and complex(consisting of several elements - shop and general factory expenses);
by the method of inclusion of all costs:straight(related to the production of a certain type of product and directly related to its cost) and indirect(not directly related to cost and distributed conditionally: general economic, general production expenses);
in relation to production volume:variables(costs, the size of which changes in proportion to changes in the volume of production, raw materials and basic materials, wages of production workers, etc.) and conditionally permanent(the size of these costs almost does not depend on changes in the volume of production; these include general production and general business expenses, etc.);
according to frequency of occurrence:current(costs that have a frequent frequency, such as consumption of raw materials and materials) and one-time(or one-time costs – costs for preparing and mastering the production of new types of products, costs associated with the launch of new production facilities, etc.);
on participation in the production process:production(costs associated with the manufacture of commercial products and forming its production cost) and commercial(non-production costs associated with selling products to customers);
by efficiency:productive(costs of production of products of established quality with rational technology and organization of production) and unproductive(costs resulting from shortcomings in technology and organization of production - losses from downtime, defective products, overtime payments, etc.). Productive costs are planned in contrast to unplanned non-productive costs.
by degree of limitation:standardized(by which the restriction limit is set) and non-standardized(costs of which are unlimited).
The results of the monetary expression of costs are reflected in the cost estimate, which is an internal document of the enterprise, which allows not only to control the overall level of costs and their dynamics, but also to compare their value by structural divisions and branches. The cost estimate allows you to determine the level of self-sufficiency for the enterprise as a whole and its individual divisions.
When developing a cost estimate, the cost of a unit of production is determined, a basis is created for calculating wholesale prices, the possibility of reducing the costs of production and sales of products through the introduction of new technologies, rationalization of product circulation is established, and the basis for making a profit is laid. Estimates are also used to determine the enterprise's needs for working capital, volumes of product sales and the amount of possible profit. In particular, an enterprise can develop a sales estimate, a production estimate, an estimate of direct material costs, an estimate of labor costs, an estimate of overhead costs, an estimate of the cost of products sold, an estimate of current (recurring) expenses, an estimate of profits and losses, an estimate of capital expenditures, and an estimate of cash flows.
Based on the foregoing, we can conclude that the costs incurred by the enterprise in the course of its activities are heterogeneous in nature, composition, structure, purpose and monetary value. In accordance with this, each type of cost has its own sources of repayment and in its own way influences the results of the enterprise’s economic activities.
1.2 ESSENCE OF COST AND ITS ECONOMIC IMPORTANCE
The production of products, the performance of work or the provision of services, being the meaning of the existence of an enterprise and determining the main directions of its activities, presupposes an appropriate resource supply, the amount of which has a significant impact on the level of development of the enterprise's economy. Therefore, each enterprise must know how much it costs to produce and sell its products (works, services). This factor is especially important in market conditions, since the level of costs for production affects the competitiveness of the enterprise and its economy.
In order to know what it costs to produce a product, an enterprise must evaluate its material and quantitative composition (means and objects of labor), as well as the composition and quantity of costs required for its production.
It is generally accepted that costs ( cost price) is the monetary expression of the costs of production factors necessary for the enterprise to carry out production and commercial activities related to the production and sale of products and the provision of services, that is, everything that it costs the enterprise to produce and sell the product (products). This is a valuation of the natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources used in the production process of products (works, services), as well as other costs for its production and sale.
The composition of costs included in the cost of production is determined by the Regulation on the composition of costs, changes and additions made to this Regulation [2].
In accordance with the purpose, the costs that form the cost of production are grouped by economic elements And costing items.
When grouping costs by element, each element includes expenses that are homogeneous in content. According to economic elements, accounting is carried out and a monetary report is drawn up on the total amount of expenses for the production of products. Classification of costs by element makes it possible to determine what exactly was spent on the production of products, what is the ratio of individual elements of costs in the total amount of expenses, makes it possible to know the cost structure and carry out targeted policies to improve the economy of the enterprise.
In accordance with regulatory documents [1,2], the costs that form the cost of production are grouped, as already noted, into the following elements: material costs; labor costs; social contributions; depreciation of fixed assets; other costs.
Elements "Material costs" reflect the cost:
purchased raw materials and materials used for production and economic needs, as well as components and semi-finished products that are subject to further installation or additional processing in this organization;
works and services of a production nature performed by third-party organizations or production facilities and farms of the organization that are not related to the main type of activity;
natural raw materials;
fuels of all types, generation of all types of energy, heating of buildings, transport work to maintain production, carried out by the organization’s transport;
purchased energy of all types, spent on technological and other production and economic needs.
The cost of material resources, reflected by the element “Material costs”, is formed on the basis of purchase prices (excluding value added tax), markups (surcharges), commissions paid to supply foreign economic organizations, the cost of commodity exchange services, including brokerage services, customs duties, fees for transportation, storage and delivery carried out by third-party organizations.
The cost of material resources included in the cost of production excludes the cost returnable waste, which refers to the remains of raw materials, materials, semi-finished products, coolants and other types of material resources formed during the production process that have lost completely or partially the consumer qualities of the original resource. Returnable waste is valued at a reduced price of the original material resource (at the price of possible use), if the waste can be used for main, auxiliary production or sold externally, and at the full price of the original material resource, if the waste is sold externally for use as a full-fledged resource.
Elements "Labor costs" reflect the costs of remuneration of the main production personnel of the enterprise, including bonuses to workers and employees for production results, stimulating and compensating payments provided for by law, costs of remuneration of non-staff workers engaged in the main activity. Bonuses paid from special-purpose funds and targeted revenues, pension supplements, income from shares and etc. treasures of the labor collective, payment for travel to the place of work by public transport, special routes, payment for vouchers for treatment and recreation, excursions and travel.
Elements “Deductions for social needs” reflect mandatory deductions according to the norms established by law to the bodies of state social insurance, the Pension Fund, employment funds and health insurance from the costs of paying employees, included in the cost of products (works, services).
Elements "Depreciation of fixed assets" reflect the amount of depreciation charges for the complete restoration of fixed production assets. World practice focuses on group depreciation rates. For this purpose, all fixed assets are grouped depending on their service life, and depreciation rates are applied to the cost of each group. It is also worth noting that depreciation charges do not represent cash costs, but are a calculated value that allows the enterprise to accumulate its own funds for investment. Depreciation charges are acquired in monetary form when financing investment programs from this source.
Elements "Other costs" reflect taxes, fees, payments (including for mandatory types of insurance), contributions to insurance funds, costs of repair work, costs of paying interest on loans received, payments for emissions of pollutants, costs of business travel, payment for communication services, computer centers, banks, depreciation of intangible assets, contributions to the repair fund, administrative expenses, etc. In this case, inclusion in the cost of these types of expenses occurs in the amount of standards established by law.
The grouping of costs into cost items reflects their composition depending on the direction (purpose) of costs (for production or its maintenance) and the place of origin (main production, auxiliary services, farm maintenance, etc.). The list of costing items, their composition and methods of distribution by type of product (work, service) are determined by industry methodological recommendations on planning, accounting and costing, taking into account the nature and structure of production (regardless of the form of ownership of the enterprise).
The Basic Provisions for Planning, Accounting and Calculation of Product Costs at Industrial Enterprises [1,2] establish a standard grouping of costs by calculation items, which can be presented in the following form:
"Raw materials";
“Returnable waste” (subtracted);
“Purchased products, semi-finished products and services of a production nature from third-party enterprises and organizations”;
“Fuel and energy for technological purposes”;
“Wages of production workers”;
“Deductions for social needs”;
“Expenses for preparation and development of production”;
"General production expenses";
"General running costs";
"Rejection losses";
“Other production costs”;
"Business expenses."
When determining cost, one should distinguish full cost of commodity products, including all cash costs for production and sales of products, and production cost of commercial products. The total of the first eleven items forms the production cost of the product, and the total of all twelve hundred items forms the full cost.
In our country, the composition of the cost of production is regulated by the state. The state establishes certain principles and rules by which taxpayers are obliged to keep records of costs for the production and sale of products (works, services), regulates the procedure for their accrual and write-off, and establishes sources of their coverage. Thus, the costs incurred by the enterprise for the purchase of raw materials, materials and other elements of material costs are compensated only in the amount spent on sold products. The remaining part ends up in unsold finished products and warehouse inventories.
Labor costs, on the contrary, are included in the cost of production when they are actually accrued, regardless of whether the enterprise made real cash payments.
Attribution of deductions for social needs to the cost of production is made when accruing funds for wages, regardless of actual payments.
Depreciation charges are calculated based on the book value and established standards, including accelerated depreciation of their active part, carried out in accordance with the law.
For other costs, a double method of covering is generally typical. Within the limits of legally established standards, they are included in the cost of production; excess costs are repaid from the profit remaining at the disposal of the enterprise after taxation.
This specific attribution of costs to the cost of production allows the state to influence the value of the main indicators of the enterprise. For an enterprise, cost is the basis for determining prices for manufactured products and, accordingly, the basis for determining profit from the sale of products and income tax. The relationship of these indicators will be reflected further in my work.
1.3 THE CONCEPT OF PRODUCT SALES REVENUE and total enterprise revenue
Revenue represents a set of cash receipts for a certain period from the results of an enterprise’s activities, and is the main source of the formation of its own financial resources. At the same time, the activities of the enterprise can be characterized in several areas:
revenue from the main activity, coming from the sale of products (work performed, services provided);
revenue from investment activities, expressed in the form of financial results from the sale of non-current assets, sale of securities;
revenue from financial activities, including the result of the placement of bonds and shares of an enterprise among investors.
As is customary in countries with a market economic system, total revenue consists of revenue in these three areas. However, the main importance in it is given to revenue from the main activity, which determines the whole meaning of the enterprise’s existence. I will dwell on this type of revenue in more detail.
There are two methods for recording revenue from sales of products:
for the shipment of goods (performance of work, provision of services) and presentation of billing documents to the counterparty. This method is called accrual method.
upon payment, i.e. based on the actual receipt of funds, reliable cash accounts of the enterprise. This cashmethod d reflection of revenue.
Despite the fact that the law allows the use of both methods of accounting for revenue, depending on the enterprise’s own choice, using the first method in an unstable economy can lead to great difficulties, because if money is not received from the payer on time, the enterprise may have serious problems associated with the impossibility of timely payment of taxes, failure of settlements with other enterprises, the emergence of a chain of its own non-payments, etc. A way out of this situation may be the formation of reserves for doubtful debts, determined on the basis of an analysis of the composition, structure, size and dynamics of non-payments for the reporting period. Therefore, in our country it is more expedient to use the cash method, because... in this case, for the settlement of the enterprise with the budget and extra-budgetary funds, there is a real monetary base received at the time of receipt of funds to the enterprise's current account from payers.
The accrual method is widely used in developed market countries because... Well-established stock and money markets insure commodity producers against non-payments and minimize their financial risks.
The enterprise's costs for the production and sale of products are legally carried out only in accrual mode.
Thus, since the costs and revenue of an enterprise are considered according to different methods, there is a discrepancy between expenses and cash receipts over time. For example, products may be produced, but funds have not yet been received for them, or vice versa, in the case of advance payments and receipt of money in the form of prepayment for shipped products, the products themselves may not only not be shipped, but even not produced .This creates certain problems in analysis main financial indicators of the enterprise.
1.4 ESSENCES AND FUNCTIONS OF PROFIT
Profit is the final indicator of the enterprise's activity. It characterizes nothing more than the effect obtained as a result of the production and economic activities of the enterprise.
Profit- this is the excess of income over expenses. The reverse situation is called a loss. From an economic point of view, profit is the difference between cash receipts and cash payments. From an economic point of view, it is the difference between the property status of the enterprise at the beginning and the end of the reporting period [8].
In modern accounting theory, primarily in English-speaking countries, a distinction is made between the tax and economic concepts of profit. In this regard, accounting or balance sheet profit is distinguished as results from the sale of work, services, materials and other property and results from non-operating activities, and taxable profit. If we start from the purpose for which the enterprise is formed, it would be more expedient to consider as profit only that part of the added value created in the process of production and economic activity, including the costs of living labor and accumulation, which is created as a result of the sale of products, performance of work, provision of services. Whereas the sale of other assets and non-operating and other operations generate income. Since the financial statements of enterprises affect stock prices, it therefore makes sense to tax profits and income separately.
In our country, the calculation of taxable profit has its own specific features, which will be presented in the second part of the work.
Firstly, it is a criterion and indicator of the effectiveness of the enterprise's activities. Moreover, its specific value makes it possible to satisfy the needs of all stakeholders for owners, creditors and employees to one degree or another.
Secondly, profit has a stimulating function. The direction of decisions on the dividend and investment policy of the enterprise, the renewal of production assets and the improvement of production depend on it. At the expense of profits, material incentives are provided to employees and the provision of social benefits, and the maintenance of social facilities.
Thirdly, profit is the source of revenue generation for budgets at various levels. It comes to budgets in the form of taxes, as well as economic sanctions, and is used for various purposes determined by the expenditure part of the budget and approved by law.
Research analysis of the RESULTS OF FINANCIAL AND ECONOMIC ACTIVITIES OF THE ENTERPRISE
2.1 Calculation of the cost of products (works, services) of the enterprise
At enterprises, the following main cost indicators are planned and taken into account: production costs, cost of commercial and sold products, which are calculated according to the following stages:
1. Determined production capacity(PS) - a set of costs associated only with production. This will include costs taken into account for all five economic elements or the first eleven calculation items.
2. Determined cost of gross output(S VP). It differs from production capacity by the amount of changes in balances of expenses of future periods. Their increase reduces production capacity and vice versa.
S VP = O r.b.p.1 + PS – O r.b.p.2,
where O r.b.p.1 – balances of expenses of future periods at the beginning of the reporting period,
About r.b.p.2 – the balances of expenses for future periods and finally the reporting period.
Determined cost of commercial products(S t). At the same time, the cost of gross output is adjusted to changes in the balances of work in progress - an increase in balances reduces the cost and vice versa.
S t = O n.p.1 + S VP - O n.p.2,
where О p.1 - work in progress balances at the beginning of the reporting period,
About item 2 - balances of work in progress at the end of the reporting period.
Determined full cost of commodity products(S t floor). At the same time, the cost of commercial products increases by non-production costs (S NZ) - the twelfth article of calculation.
S t floor = S t + S NC
5. Determined cost of goods sold(With RP). At the same time, the value of the total cost of commodity products decreases (increases) by the positive (negative) change in the balances of finished unsold products.
S RP = O nr.p.1 + S t floor - O nr.p.2,
where O no. 1 is the balance of unsold products at the beginning of the reporting period (at actual cost),
About item 2 - the balance of unsold products of the reporting period.
When planning cost, it should be taken into account that the planning period must coincide with the reporting period (year, quarter). This allows the enterprise to predict upcoming tax payments and, accordingly, provide upcoming mandatory payments with the necessary monetary resources.
The composition of the balances of unsold products depends on the method of accounting for revenue from the sale of products at the enterprise. If the accrual method is used in its calculation, then after the shipment of goods and the issuance of payment documents, the products are considered sold and therefore the balances of unsold products at the beginning of the planning period coincide with the actual warehouse inventories. Under the cash method of accounting for revenue, products are considered unsold until money for them is received in the company's current account. Balances at the beginning of the planning period are assessed based on the actual production cost of the previous reporting period.
2.2 Calculation of revenue from sales of products (works, services) of the enterprise
In the process of financial and economic activities, the financial services of an enterprise can plan revenue for the coming year and quarters promptly.
Annual revenue planning is effective in a stable economic situation. In conditions of instability, when the relationship between supply and demand is confirmed by difficult to predict changes, the legally established rules of conduct for legal entities are constantly changing, annual planning is difficult and is not an objective guideline for the enterprise. In such a situation, quarterly planning is more appropriate.
Operational revenue planning is used to control the timely receipt of money for shipped products to the enterprise's reliable accounts.
To determine revenue from product sales, it is necessary to know the volume of product sales at current prices without VAT, excise taxes, trade and sales discounts and export tariffs for exported products.
Revenue from work performed and services provided is determined based on the volume of products and the corresponding prices and tariffs.
There are two methods for calculating planned revenue:
direct counting method;
calculation method.
Direct counting method based on guaranteed demand. It is assumed that the entire volume of manufactured products falls on a pre-registered package of orders. This is the most reliable method of revenue planning, when the production plan and sales volume of products are linked in advance to consumer demand, the required assortment and structure of product output are known, and appropriate prices are set, then sales revenue can be determined using the formula:
where N is revenue from sales of products,
Q – volume of products sold,
p – unit price of sold products.
As a rule, in market conditions, most enterprises do not have a guaranteed demand for the entire volume of products produced. To optimize costs and increase financial results, an enterprise must make efforts to increase product output, expand its range, and produce products that are fundamentally new in terms of consumer qualities. In addition, in turn, the quantity of goods sold will also depend on the price level, and this dependence in practice can be elastic, inelastic and unit with the corresponding elasticity coefficients (K e): in the first case it is greater than one, in the second it is less, in the third it is equal to one.
The physical meaning of these coefficients is that when K e > 1, a change in price by 1% leads to a change in demand by more than 1%; when K e = 1, a 1% change in price brings 1% change in the quantity of demand; when a 1% change in price leads to a change in demand of less than 1%.
The degree of elasticity affects the desired quantities differently. For example, with elastic demand (K e > 1) N increases as the price decreases, and with inelastic demand (K e
The nature of changes in revenue depending on changes in price and demand can be shown in the form of a graph.
p 1 A (p 1 ,q 1)
p 2 B(p 2 ,q 2)
О q 1 q 2 q 3 Q
The graph shows that revenue at price P 1 is the area of the rectangle OR 1 AQ 1 and characterizes elastic demand, i.e. when the price decreases, revenue increases. The rectangle OR 2 BQ 2 corresponds to the neutral elasticity of demand; depending on the price change, revenue in this area of price change does not change. The rectangle OR 3 CQ 3 displays the conditions of demand inelasticity. In this case, a decrease in price will lead to a decrease in revenue.
Since the change in the value of N is influenced differently by the nature of demand, in this regard, of practical interest is the graphical plotting of the dependence of revenue on price changes for a certain demand function. Let us assume that demand decreases depending on price. We get the following graph:
The graph shows that revenue from sales of products up to a certain increase in the volume of its sales increases with a decrease in price (elastic demand), but after reaching a critical volume (N k) it begins to decrease. At the first stage, a decrease in price can have the effect of increasing revenue, but upon reaching a critical point, the enterprise will begin to lose revenue for the products sold. This must be taken into account in the pricing policy so as not to lose possible income.
In conditions of unstable demand for products manufactured by the enterprise, revenue planning is also used calculation method, the basis of which is the volume of products sold, adjusted for input and output balances. Planning of revenue from product sales is carried out by analogy with cost planning:
N= O n.g.p.1 + T R - O n.g.p.2 ,
where N is revenue from product sales,
About n.g.p.1 - unsold balances of finished products at the beginning of the planning period,
T R - commercial products intended for release in the planned period,
About n.g.p. 2 - unsold balances of finished products of the planned period.
When planning the balances of finished products at the beginning of the planning period, the enterprise does not have comprehensive data on the actual amount of balances, therefore the expected balances of unsold products are taken into account. If we consider the cash method of revenue planning, then the expected balances at the beginning of the planning period will consist of:
from finished products in stock;
from goods shipped, the documents for which have not been transferred to the bank;
from goods for which the payment deadline has not arrived;
from goods shipped but not paid on time;
from goods that are in the custody of buyers due to refusal of acceptance.
Thus, the amount of revenue may differ significantly from the cost of products shipped.
I will dwell in more detail on the planning of these factors that influence the timely receipt of revenue for manufactured products.
When planning balances of unsold products in the warehouse are based primarily on their actual availability, and in the absence of current data, from the data as of the last reporting date, and the expected release of commercial products taking into account their sales in accordance with existing orders at the beginning of the planning period.
Planning balances of goods for which payment is not due, is carried out on the basis of an analysis of the structure, schedules, methods of payment under concluded agreements, as well as the existing deadlines for document flow for intracity and non-city payments, as well as payments in the currency of foreign economic activity.
Planning balances of goods shipped but not paid on time, goods in the custody of buyers, goods shipped for which documents have not been transferred to the bank, relies on operational data on the causes of non-payments and measures taken to reduce them.
The balance of finished products in the warehouse for the planned period is determined based on the need for accumulation to fulfill contractual obligations whose validity period is outside the planned period, sales conditions and other reasons.
The receipt of revenue from the enterprise's cash accounts represents the completion of the circulation of funds. Its use represents the beginning of a new circuit, as well as the stage of distribution processes.
2. 3 FORMATION AND CALCULATION OF BALANCE SHEET, TAXABLE AND NET PROFIT INDICATORS
The final financial result of an enterprise is the profit (loss) of the reporting period, which is the algebraic sum of the result from the sale of products (work, services), the result from financial activities; the balance of income and expenses from other non-operating operations.
In Russian practice, the following definitions are used: gross profit, balance sheet profit, net profit, profit remaining at the disposal of the enterprise, taxable profit. These definitions are not normatively fixed and can be used in various contexts.
The official definition applies only to the term “ gross profit”and is given in the Law of the Russian Federation “On Taxation of Profit of Enterprises and Organizations”: “Gross profit is the amount of profit (loss) from the sale of products (works, services), fixed assets (including land), other property of the enterprise and income from non-operating operations, reduced by the amount of expenses for these operations. Profit (loss) from the sale of products (works, services) is defined as the difference between the proceeds from the sale of products (works, services) without VAT and excise taxes and the costs of production and sales included in the cost of products (works, services)” [ 3 ].
It should be noted that gross profit is not reflected in the financial statements, does not coincide with taxable profit and, at the same time, includes income that has both a production and speculative and commercial orientation.
Since gross profit is not reflected in the financial statements, it makes sense to introduce a definition that characterizes the result of the financial and economic activities of the enterprise and appears in the report. Let's call this profit balance sheet.The calculation of balance sheet profit will look like this:
R b = R r R f R ext. ,
where R b - balance sheet profit or loss;
R r - result (profit or loss) from the sale of products (works, services);
R f - result (profit or loss) from financial activities;
R int. - balance of income and expenses from other non-operating operations.
The result of the sale of products (works, services) is determined by the following calculation:
R r =N - S RP,
where N is revenue from the sale of products (works, services) in selling prices without VAT, excise taxes and other indirect taxes and fees;
S RP - cost of products sold.
Profit (loss) from financial activities and from others non-operations is determined as the result of transactions reflected in accounts 47 “Sale and other disposal of fixed assets” and 48 “Sale of other assets”, as well as the difference between the total amount received and paid:
fines, penalties and other economic sanctions;
interest received on the amounts of funds in the accounts of the enterprise;
exchange rate differences on foreign currency accounts and transactions in foreign currency;
profits and losses of previous years identified in the reporting year;
losses from natural disasters;
losses from writing off debts and receivables;
receipts of debts previously written off as bad;
other income, losses and expenses attributed in accordance with current legislation to profits and losses.
At the same time, amounts contributed to the budget in the form of sanctions in accordance with the legislation of the Russian Federation are not included in expenses from non-operating operations, but are attributed to the reduction of profit remaining at the disposal of the enterprise after paying income tax.
In all countries with market economies, profits are taxed. Therefore, in practice it is customary to separate out taxable profit. On the basis of taxable profit, relationships are built between the state and enterprises, which can affect the activities of producers both positively and negatively.
Taxable income determined by a special calculation. In this case, the resulting amount of balance sheet profit increases on the:
amounts of valuables received free of charge;
amounts of overspending on limited items;
the difference between the amount of sales revenue calculated at actual market prices (when selling products below cost);
the amount written off as losses, shortages, etc.
AND decreases on the:
the amount of contributions to reserve and other similar funds, the creation of which is provided for by law (until the size of these funds reaches no more than 25% of the authorized capital, but not more than 50% of profit subject to taxation);
rent payments to the budget;
income from securities;
income from equity participation in the activities of other organizations;
income in the form of dividends on shares;
income on government securities;
income from intermediary operations;
income from insurance operations;
income from individual banking operations;
income from gambling, video rentals, video salons, casinos, etc.;
profit from the sale of agricultural products;
profit from the sale of hunting products;
Monetary amounts for these types of activities are not included in taxable profit, since rates for these types are different from the basic corporate income tax rate.
Thus, the profit subject to taxation differs markedly from the financial result of economic activity. In this case, cases are possible when the calculated income tax exceeds the amount of balance sheet profit, which forces the enterprise to use other sources to pay the tax and, accordingly, does not have a supporting effect on the improvement of production and entrepreneurship in our country.
It should also be noted that if our country taxes both profits from the main activities of an enterprise, and results from financial activities and non-operating income, then in world practice it is customary to differentiate the taxation of these types of profits. In my opinion, such a distinction seems reasonable, since it gives the most holistic picture of the types of activities of the enterprise, allows us to assess what part of the total profit is occupied by profit from the main activity, and creates the opportunity to manage income from speculative and commercial transactions by increasing the tax rate or, conversely, reducing it. In particular, profit from the sale of fixed assets is distinguished as capital gain. The same applies to the difference between the purchase and sale prices of other assets (real estate, land, securities). In developed countries, this difference, adjusted for the inflation rate, refers to capitalized profits. Such a profit is associated with uncertainty, since it cannot be foreseen that it will be repeated in the future.
For example, in the UK there is a separate tax on capital gains (capital gains tax), which levies the increase in the value of certain assets upon their sale, indexed by an inflation factor. In the United States, profits from the sale of assets that were previously owned by the owner for more than six months are taxed at a halved rate or even lower tax rates [8].
Net profit enterprises, i.e. the profit remaining at his disposal is determined as the difference between book profit and the sum of income taxes, rent payments, export and import taxes.
Net profit is directed to production and social development, material incentives for workers, the creation of a reserve (insurance) fund, payment to the budget of economic sanctions related to the enterprise's violation of current legislation, for charitable and other purposes.
Improving the country's tax and financial policies in the field of entrepreneurship will obviously help producers, but in any case, independent, skillful and high-quality planning by the enterprise of its own activities should come to the fore in order to obtain profit in accordance with the interests of the enterprise.
2 .4 ANALYSIS OF COST BEHAVIOR AND THE RELATIONSHIP OF COST, REVENUE AND PROFIT.
A necessary condition for obtaining a profit is a certain degree of development of production, ensuring that the proceeds from the sale of products exceed the costs of its production and sales. Moreover, the main goal of any enterprise is not only to make a profit, but to maximize it. The ability to achieve this goal is limited by many factors, the determining ones of which are, firstly, production costs, and secondly, the demand for manufactured products, on which the volume of manufactured products depends.
Thus, the main factor chain that generates profit can be represented by the following diagram:
Costs-› Production Volume-› Profit
I will consider how the relationship between the elements that make up this scheme is carried out using the example of cost accounting for the system direct costing(direct costing), which is used in countries with developed market economies.
This system allows you to trace the relationship and select the optimal solution for optimizing profit and the range of products, determining the price of new products; assessing options for changing the capacity of the enterprise, the efficiency of accepting additional orders, and replacing equipment.
The system is based on the principle of dividing production costs into constants (conditionally constant) and variables, the characteristics of which were considered by me in part of the work.
Total production costs (Z) consist of two parts: constant (Z 0) and variable (Z 1), which is reflected by the equation:
or when calculating the cost of one product:
where Z is the total production costs,
Q - production volume (number of units of production),
C 0 - fixed costs per unit of production,
C 1 - variable costs per unit of production.
Let the following data on production volume and production costs be known.
Let us plot the dependence of the cost of production on the volume of production. To do this, in the direct costing system, you can use the high and low point method, which consists in executing the following algorithm:
1. From the data on production volume and costs for the period, the maximum and minimum values of volume and costs are selected, respectively: Q max = 168, Q min = 100, Z max = 112, Z min = 75;
2. Differences in levels of production volume and costs are found ( Q = 168-100 = 68, Z = 112-75 = 37);
3. The rate of variable costs for one product is determined by attributing the difference in the levels of costs for the period to the difference in levels of production volume: K = Z/ Q = 37:68 = 0.544.
4. The total value of variable costs for the maximum (minimum) volume of production is determined by multiplying the rate of variable costs by the corresponding volume of production: Z 1max = K * Q max = 0.544 * 168 = 91.4, Z 1 min = K * Q min = 0.544 * 100 = 54.4.
5. The total value of fixed costs is determined as the difference between all costs for the maximum (minimum) production volume and the value of variable costs: Z 0 = Z max -Z 1max = 112-91.4 = 20.6 or Z 0 = Z min -Z 1min = 75-54.4 = 20.6
6. An equation of total costs is compiled, reflecting the dependence of changes in total costs on changes in production volume:
where Z is the total costs,
Q - production volume.
This equation is the equation of a straight line passing through a point, the ordinate of which corresponds to the amount of constant costs. The line of constant costs itself will obviously be parallel to the output volume axis, since it does not depend on it. This can be represented on a graph as follows: Z 1
ZThe degree of response of production costs to changes in production volume can be assessed using the so-called cost response coefficient (K):
К= Z/ Х,
where Z is the change in costs for the period in %,
X is the change in production volume in%.
Depending on the value of the coefficient K, we can distinguish different options for the behavior of costs depending on the volume of production:
It's obvious that in order toTo ensure cost reduction and increase the profitability of the enterprise, it is necessary that the rate of reduction of degressive costs exceeds the rate of growth of progressive and proportional costs.
The direct costing system analyzes fixed costs, which are divided into useful And useless Thus, fixed costs can be represented as the sum of useful and useless costs:
Z 0 =Z useful +Z is useless.
The amount of useful and wasteful costs can be calculated given the maximum possible (X max) and actual production volume (X fact)
Z useful = (X max -X fact)* Z 0 /X max;
Z useless = X fact *Z 0 /X max.
The value of dividing costs into fixed and variable, and permanent into useful and useless, is to simplify accounting and increase the efficiency of obtaining profit data.
The next feature of the direct costing system is the combination of production and financial accounting, which makes it possible to regularly monitor the dependence: Costs -› Production Volume -› Profit.
The main report model for profit analysis can be two-stage:
Volume of sales
Variable costs
Marginal profit
Fixed costs
Profit
Or three-stage:
Volume of sales
Variable production costs
Production marginal profit
Variable non-production costs
Marginal profit
Fixed costs
If the enterprise operates profitably, then R>0, if it is unprofitable, then R is the critical volume of production. Finding the point of critical volume or the break-even point of production and sales of products is an important point for further calculations.
Calculation of critical production volume.
To determine it, you can use a graphical method. To do this, in a rectangular coordinate system, a graph is constructed depending on the cost and revenue on the number of units of output. The intersection of the lines of cost and revenue (fulfillment of the condition R = Z) will give the desired point, the abscissa of which will correspond to the critical volume of production, and the ordinate will correspond to its value expression. As a result of the intersection of the charts, we will obtain two areas, one of which will represent a profit zone, the other a loss zone. At the point of their intersection there is no profit or loss.
N cr,
Z cr Loss
Variable costs
Thus, at point K we have the following relation:
N cr = Z cr
Revenue from critical production volume:
N cr = p*Q cr
The cost of this critical volume:
Z cr = Q cr *z 1+ Z 0 ,
where p is the unit price of the product,
z 1 - variable costs per unit of production,
Q cr - critical production volume.
We get: p*Q cr = Q cr *z 1+ Z 0 ,
p*Q cr - Q cr *z 1= Z 0 ,
Q cr= Z 0 /(p-z 1 )=Z 0 /d
where d is the marginal profit per unit of production.
Calculation of critical revenue volume
N cr= p*Q cr =Z 0 *p/(p- z 1)= Z 0 *r/d
If the price changes in the next period, then to maintain the same amount of marginal profit it is necessary that d 0 *Q cr0 =d 1 *Q cr1, where index 0 determines the value of the indicator in the previous period, and index 1 in the reporting period.
Then Q kr1 =d 0 * Q cr0 / Q kr1 .
Calculation of the critical level of fixed costs
N cr = Z cr = Z 1 + Z 0,
Z 0 = N kr - Z 1 = p*Q kp – z 1 *Q kp = Q kp *(p-z 1)= Q kp *d.
This formula is convenient in that it allows you to determine the amount of fixed costs if the level of marginal profit is specified as a percentage of the product price or sales volume (revenue). We get the following formula:
Z 0 = Q*(dVCN)/100
Calculation of the critical selling price
The sales price is determined based on the given volume of sales and the level of fixed and variable costs per unit of product. We have:
Ncr = Z 1 + Z 0,
p*Q kp = Z 1 + Z 0 ,
p= (Z 1 + Z 0 )/Q kp .
Calculation of the minimum level of marginal profit
If the amount of fixed costs and the expected amount of revenue are known, then the level of minimum marginal profit as a percentage of revenue will be determined from the formula:
N cr =Q cr *p =p*Z 0 /d,
dVCN= p*Z 0 /N cr *100
Calculation of planned volume for a given amount of planned profit
If Z 0 , р, z 1 are known, as well as the amount of desired profit, then by definition of marginal profit we have:
d*Q pl = Z 0 + R pl,
(р-z 1)*Q pl = Z 0 + R pl,
Q pl = (Z 0 + R pl )/
Calculation of sales volume that gives the same profit for different production options
Various production options mean different options for technology, prices, cost structures, etc. The number of options does not matter. From the previous formula we have:
R = Q * (р-z 1) - Z 0, then if Z 01 and Z 02 are fixed costs for various options, ad 1 and d 2 are marginal profit per unit of production for various options, then from the given condition of equality of profit we obtain:
Q*(p 1 -z 1 1)- Z 0 1 = Q*(p 2 -z 1 2)- Z 0 2,
Q*d 1 - Z 0 1 = Q*d 2 - Z 0 2,
Q= (Z 0 1 - Z 0 2 )/(d 1 –d 2 )
These are the basic principles of profit optimization and cost analysis in the direct costing system. However, these calculations do not provide solutions for obtaining maximum profit, so the problem arises of studying the operating conditions of the manufacturer under which maximum profit is achieved.
2.5 Marginal analysis method for calculating maximum profit
The volume of production, the price of the product and its cost are in a certain dependence on each other. Let us find the condition under which the profit function can reach its maximum value.
Let's consider the profit function from sales of products:
R = N – S, where S is the cost of products sold.
In this case N= p*Q. We have R = p*Q – S.
A necessary condition for the profit function to achieve a maximum at a point for the given demand functions p = f (Q) and cost S = g (Q) is the condition under which the limit value at this point will be equal to zero.
d(p*Q – S)/dQ = d(p*Q)/dQ – dS/dQ= 0
From here d(p*Q)/dQ= dS/dQ. Therefore, for profit to be maximized, there must be equality between the marginal values of revenue and cost.
Indicators of marginal revenue (dN/dQ) and marginal cost (dS/dQ) are fundamental concepts in economics and allow an enterprise to better navigate the market. They characterize the increase in revenue (cost) as a result of an increase or decrease in sales by one unit.
If the indicator dN/dQ = 0, revenue N (Q) reaches a maximum. Up to this limit, at dN/dQ0 it decreases (these conclusions follow from calculating the maximum of the function TR (Q) using the derivative). Thus, a further increase in the volume of sales of goods does not result in an increase in revenue, but a decrease in it. This must be taken into account when calculating the optimal volume of production sales of goods.
For the cost function, the equality of the marginal cost dS/dQ = 0 means that with such a volume of production, the cost reaches a minimum. Previously, at dS/dQ>0, the cost S(Q) decreased with increasing production volume, after reaching its minimum value at dS/dQ
CONCLUSION
Analyzing how the problems posed in the introduction were solved, the following conclusions can be drawn.
The study of the concept of “costs” of an enterprise and their types showed that costs can be classified in various ways, and one or another classification is considered in accordance with the purpose and capabilities of their accounting, as well as methods of covering them. In addition, a special group of costs is identified that relates to the cost of production, which serves as the basis for measuring the self-sufficiency of the enterprise's activities - a fundamental feature of economic accounting and the efficiency of resource consumption.
In our country, there are two ways to attribute costs to cost: by elements of calculation items. Moreover, the first method is determined by the state standard, the second - by the enterprise itself.
The source of formation of the enterprise's own financial resources is revenue. An analysis of the methods of accounting for revenue and corresponding costs showed that the main problem in this matter is the inconsistency of the time factors for reflecting the expenses and income of the enterprise, a violation of unity over the periods of their implementation. This problem can entail various negative consequences affecting the main financial result of the enterprise - the amount of profit, since it entails are various paradoxical situations that distort the financial statements of an enterprise.
Profit, representing the most important economic indicator of the financial and economic activity of an enterprise, is not only a source of financing production, but a means of meeting the needs of all segments of society. During its distribution, the interests of both society as a whole, represented by the state, and the interests of economic entities, shareholders, and individual employees of the enterprise intersect
The calculation of indicators of balance sheet profit and profit subject to taxation contains many contradictions in the financial policy of our country. In particular, these contradictions are manifested in the very definition of the concept of “profit”, since profit reflected in financial statements and taxable profit are not related to its main task, which is solved by producers in the process of carrying out their activities.
Despite the fact that the amount of profit is influenced by various factors relating to both general economic processes and processes occurring in the activities of the enterprise itself, profit is a controlled parameter. The effectiveness of this management depends on knowledge of market conditions and the ability to constantly adapt production development to it. This dependence is manifested, firstly, in the correct choice of the production direction of the enterprise for the production of products (choice of products that are in stable high demand); secondly, in the creation of competitive conditions for the sale of products and provision of services (price, delivery times, customer service, after-sales service); thirdly, in the volume of production (the greater the sales volume, the more more profit); fourthly, in the range of products and reduction of production costs. Profit can be managed at all stages of the production cycle, starting from the purchase of raw materials and materials, and ending with the sale of products.
At the same time, the problem of optimizing profit is ambiguous. On the one hand, profit should be as large as possible, because this is a financial result that characterizes the achievement of the final goals of the business, increasing its investment opportunity and attractiveness. On the other hand, it is unprofitable to show large profits in reports, because the tax base and tax amount increase. This is where the problem of profit optimization arises.
One of these solutions is the direct costing system, which is currently a attribute of the market economy, the main task of which is to change production volumes, which allows flexible and prompt decision-making to normalize the financial condition of the enterprise.
Bibliography
Regulations on the composition of costs for the production and sale of products included in the cost of production and on the procedure for generating financial results taken into account when taxing profits from 05.0.92. №552
Changes and additions made to the Regulations on the composition of costs for production and sales of products included in the cost of products and on the procedure for generating financial results taken into account when taxing profits dated 07/01/95 No. 661
Law of the Russian Federation dated December 27, 1991 “On taxation of profits of enterprises and organizations” No. 2116-1
"Enterprise Finance" ed. Borodina E.I. M.: "Banking Exchange", 98.
“Directory of an Enterprise Director”, edited by Lapusta M.G.M.: INFRA-M, 98.
"Enterprise Economics" ed. Gruzinova V.P. M.: "Banking Exchange", 98.
"Enterprise Economics" ed. Volkova O.I. M.: "Banking Exchange", 97
"Enterprise Finance" ed. Kolchina N.V. M.: Finance, 98.
Kondrakov N.P. “Accounting”, M.: INFRA-M, 99.
Sheremet A.D., Saifulin R.S. “Enterprise Finance”, M.: INFRA-M, 99.
"Economics. Law. Finance.” Dictionary-reference book, “Banks and exchanges”, 98.
Profit and income are the main indicators of the financial results of the production and economic activities of an enterprise.
Income is the proceeds from the sale of products (works, services) minus material costs.
It represents the monetary form of the net output of the enterprise, i.e. includes wages and profits.
Income characterizes the total amount of funds that an enterprise receives over a certain period and, minus taxes, can be used for consumption and investment. Income is sometimes subject to taxation. In this case, after deducting the tax, it is divided into consumption, investment and insurance funds. The consumption fund is used to pay staff and payments based on work results for a certain period, for a share in the authorized property (dividends), financial assistance, etc.
Material costs include costs included in the corresponding element of the production cost estimate, as well as costs equivalent to them for: depreciation of fixed assets, deductions for social needs, as well as “other costs”, i.e. all elements of the production cost estimate with the exception of labor costs.
Profit is the portion of revenue remaining after reimbursement of all costs of production and marketing of products.
In a market economy, profit is one of the main sources of accumulation and replenishment of the revenue side of state and local budgets; the main financial source of development of the enterprise, its investment and innovation activities, as well as a source of satisfying the material interests of members of the workforce and the owner of the enterprise.
The amount of profit (income) is significantly influenced by both the volume of products produced and its range, quality, cost, improvement of pricing and other factors. In turn, profit affects such indicators as profitability, solvency of the enterprise and others.
The total profit of an enterprise (gross profit) consists of three parts:
- profit from product sales- as the difference between revenue from sales of products (excluding VAT and excise duty) and its full cost;
- profit for the sale of material assets and other property(this is the difference between the selling price and the costs of acquisition and sale). Profit from the sale of fixed assets will represent the difference between the proceeds from the sale, the residual value and the costs of dismantling and sale;
- profit from non-operating operations, i.e. transactions not directly related to the main activity (income from securities, from equity participation in joint ventures; rental of property; excess of the amount of fines received over those paid, etc.).
Gross income– the total amount of income of an enterprise from all types of activities in monetary, tangible or intangible forms. Distribution– reimbursement of material costs, wear and tear of fixed assets; taxes and other obligations. payments; salary and deductions for social needs; financing other expenses; profit.
Profitability of resources and products
Unlike profit, which shows the absolute effect of activity, there is a relative indicator of the efficiency of an enterprise - profitability. In general, it is calculated as the ratio of profits to costs and is expressed as a percentage. The term comes from rent (income). Profitability indicators are used for comparative assessment of the performance of individual enterprises and industries producing different volumes and types of products. These indicators characterize the profit received in relation to the production resources expended. The most commonly used indicators are product profitability and production profitability.
The following types of profitability are distinguished:
1) profitability of production (profitability of production assets) - Rp, is calculated by the formula:
Where P- total (gross) profit for the year (or other period);
general physical training- average annual cost of fixed production assets;
NOSE- average annual balance of standardized working capital.
2) product profitability Rprod. characterizes the cost efficiency of its production and sales:
Where Etc- profit from sales of products (works, services);
Wed- full cost of products sold;
Concept of economic activity
Definition 1
The economic activity of any enterprise consists of producing products, performing certain works or providing services. Economic activity always has the goal of making a profit and satisfying the socio-economic interests of the owners and personnel of the enterprise.
Several stages of economic activity can be considered:
- carrying out scientific research and development work,
- output,
- auxiliary farm,
- maintenance of main production and sales,
- marketing, product sales and after-sales support.
Analysis of economic activity is a way of understanding economic processes and phenomena, which is based on division into component parts and the study of the variety of dependencies and connections.
Analysis of economic activity is a management function of any enterprise and precedes actions and decisions, justifying scientific and production management and increasing its efficiency and objectivity.
Areas of business activity analysis include: analysis of profitability, profit, equity capital, liquidity and solvency, financial stability, use of borrowed capital, as well as cash flow analysis and business activity analysis.
Economic performance indicators
When analyzing the economic activity of an enterprise, specialists examine the indicators in a comprehensive manner. Several types of indicators can be distinguished.
In accordance with the indicators underlying the meters, they can be cost or natural.
Note 1
The most common type of indicators are cost economic indicators that summarize economic phenomena of a heterogeneous nature. When an enterprise uses more than one type of materials and raw materials, then information about the total amounts of receipts, consumption and balances of labor items can only be calculated in cost terms.
Primary indicators are natural indicators, while cost indicators are secondary, since they are calculated on the basis of natural indicators.
In accordance with the side or operation of measuring phenomena, indicators can be quantitative and qualitative.
In order to calculate results that allow quantitative measurements, quantitative indicators are used. The values of quantitative coefficients can be expressed in the form of a certain number that has an economic or physical meaning.
Such indicators include financial, market indicators, as well as indicators that characterize the efficiency of the business process and activities for training and personnel development.
Financial indicators include net profit, the amount of revenue, the amount of fixed and variable costs, turnover and profitability, as well as liquidity.
Market metrics consist of sales volume, market share, growth and customer base size.
Business process performance indicators include labor productivity indicators, order lead time, production cycle, personnel participation, and the number of employees who have been trained.
Most of the characteristics of the performance of an enterprise and its departments, as well as employees, are subject to quantitative measurement, but many of them are not quantifiable, so qualitative indicators are used.
Quality indicators are measured using expert assessments through observation of the results and process of work. These may include the following indicators:
- staff satisfaction index,
- relative competitive position of the company,
- employee satisfaction index with team work,
- level of discipline,
- high-quality and timely provision of documents,
- compliance with standards,
- execution of instructions from management, etc.
Qualitative indicators are leading indicators because they have an impact on the bottom line of the enterprise and warn about likely quantitative indicators.
Note 2
In accordance with the use of individual indicators or their ratios, there can be specific and volumetric indicators. For example, product output, sales, or output is a volumetric measure. The volume indicator characterizes the overall volume of an economic phenomenon; they are not primary.
Secondary indicators are the specific indicator, which is calculated on the basis of volumetric indicators. For example, production cost and value are volumetric indicators, and the ratio of production cost to product value is a specific indicator that reflects the cost of each ruble of marketable products.
Results of economic activities
Among the results of the economic activity of an enterprise, one can distinguish profit and income.
Income represents the proceeds from the sale of goods minus material costs. Income is a monetary form that includes wages and profit of the enterprise.
With the help of income, you can characterize the amount of funds received by a company for a period minus tax deductions, as well as consumption deductions.
Most often, income is subject to taxation, then after deduction of tax it can be divided into consumption funds, investment and insurance funds.
Definition 2
Profit is the part of the revenue that remains after reimbursement of the costs of production and sales of products. Under the condition of a market economy, profit is a source of replenishment of the local and state budget revenues, the development of the company, its innovative activities, and the satisfaction of the material interests of the workforce and the owners of the company.
The amount of income and profit is influenced by the volume of products produced, its quality and range, cost, pricing system and other factors.
Profit can, in turn, affect the profitability and solvency of the company.
Financial results of the organization’s economic activities
Coursework in the discipline “Finance and Credit”
2.3 . Determination of the financial results of the enterprise. Basic indicators of economic analysis……………...…………………………..……………………………………………………………...…….9
2.4 . Financial statements of the enterprise………………………………………………..…….....11
2.4.1. Elements and currency of financial reporting in international standards… .……11
2.4.2. Financial analysis in international standards…………………………………….12
3.1. Sources of capital growth………………………………………………………………..………...14
3.2.1. Contents of accounting policies……………………………………………………….17
3.2.2 . Method for assessing material resources…………………………………………………………….17
3.2.3. Methods for calculating depreciation of low-value and fast-wearing items.....18
3.2.4. Accounting for the costs of repairing fixed assets……………………………………..…20
3.2.5. Methods for grouping and including costs in the cost of goods sold, products…………………………………………………………………………………………..………20
3.2.6 . Methods for determining revenue from the sale of goods, products, works, services for tax purposes…………………………………………………………………………………22
4. Monitoring the results of the financial and economic activities of the enterprise…………………...24
4.1. Objectives of monitoring the results of the enterprise’s activities…………………………………….24
4.2 . Objectives of monitoring the results of an enterprise’s activities………………………………………..24
4.3. Model for monitoring the results of an enterprise’s activities………………………………...……..25
4.4 . General scheme of technology for monitoring the results of an enterprise’s activities………………...…27
4.4.1 . Determination of control indicators and values……………………………...…..27
4.4.2. Detection of deviations……………………………………………………………..….28
4.4.3. deviation analysis…………………………………………………………………………………..30
5. Assessment of the financial results of the enterprise (using the example of Uralselenergoproekt CJSC)………………………………………………………………………………..31
5.1. Dynamics and structure of financial results of the enterprise and analysis of profit by factors…………………………………………………………………………………………..……… ...31
5.2. Optimization of production volume, profits and costs in the system
direct costing…………………………………………………………………………………………………………..….35
6. Conclusion………………………………………………………………………………………...…..47
7. List of used literature………………………………………………………………………………...…48
1. Introduction
In a market economy, the efficiency of production, investment and financial activities is expressed in financial results.
In market conditions, each economic entity acts as a separate commodity producer, which is economically and legally independent. An economic entity independently selects a business area, forms a product range, determines costs, forms prices, takes into account sales revenue, and, therefore, identifies profit or loss based on the results of activities. In market conditions, making a profit is the immediate goal of production of a business entity. The implementation of this goal is possible only if the business entity produces products (work, services) that, in their consumer properties, meet the needs of society. Society does not need ruble equivalents, but specific commodity-material assets. The act of selling a product (work, service) also means public recognition. Receiving revenue for manufactured and sold products does not mean making a profit. To identify the financial result, it is necessary to compare revenue with production and sales costs:
The essence of the activity of each enterprise determines the features of its functioning, the content and structure of assets, especially fixed assets; forms a significant part of the final financial result.
A stable financial position has a positive impact on the implementation of production plans and provision of production needs with the necessary resources. Therefore, financial activity as an integral part of economic activity is aimed at ensuring the systematic receipt and expenditure of monetary resources, implementing accounting discipline, achieving rational proportions of equity and borrowed capital and its most efficient use.
Thus, consideration of the issue of the essence and formation of the financial results of an economic entity is important and relevant in a market economy.
The relevance of this issue determines the choice of topic and content of this work.
The purpose of the work is to study the essence, structure and formation of the financial results of the enterprise.
In accordance with the goal, the following tasks must be solved:
Consider the theoretical aspects of the economic content of financial results;
Financial results of the enterprise as a guarantee of the successful operation of the enterprise;
Analyze the financial results of a separate enterprise, JSC Uralselenergoproekt."
2. Organization of enterprise finances
An enterprise is an independent economic entity created to conduct business activities, which are carried out in order to make a profit and meet public needs.
An enterprise is, as a rule, a legal entity, which is determined by a set of characteristics: isolation of property, liability for obligations with this property, the presence of a bank account, and actions on its own behalf. The isolation of property is expressed by the presence of an independent balance sheet on which it is listed.
The content of the economic activity of an enterprise consists of organizing the production and sale of goods. This quality can be products of a natural material nature (for example, products of mining, manufacturing and processing industries, agriculture, construction), performance of work (industrial, installation, design and survey, geological exploration, scientific research, loading and unloading, etc.) provision of services (transport, communication services, utilities, household services, etc.).
The enterprise interacts with other enterprises - suppliers and buyers, partners in joint activities, participates in unions and associations, as a founder contributes a share in the formation of the authorized capital, enters into relationships with banks, the budget, extra-budgetary funds, etc.
Financial relations arise only when, on a monetary basis, the formation of the enterprise’s own funds and its income occurs, the attraction of borrowed sources of financing economic activities, the distribution of income generated as a result of these activities, and their use for the development of the enterprise.
The organization of economic activity requires appropriate financial support, i.e. initial capital, which is formed from the contributions of the founders of the enterprise and takes the form of authorized capital. This is the most important source of formation of property of any enterprise. Specific methods of forming authorized capital depend on the organizational and legal form of the enterprise.
When creating an enterprise, the authorized capital is directed to the acquisition of fixed assets and the formation of working capital in the amounts necessary to conduct normal production and economic activities, and is invested in the acquisition of licenses, patents, know-how, the use of which is an important income-generating factor. Thus, the initial capital is invested in production, in the process of which value is created, expressed by the price of products sold. After the sale of products, it takes monetary form - the form of proceeds from the sale of manufactured goods, which goes to the company's bank account.
Revenue is a source of reimbursement of funds spent on production of products and the formation of cash funds and financial reserves of the enterprise. As a result of using the proceeds, qualitatively different components of the created value are separated from it.
First of all, this is due to the formation of a depreciation fund, which is formed in the form of depreciation charges after the depreciation of fixed production assets and intangible assets takes monetary form. A prerequisite for the formation of a depreciation fund is the sale of manufactured goods to the consumer and the receipt of proceeds.
The material basis of the created product consists of raw materials, purchased components and semi-finished products. Their cost, along with other material costs, depreciation of fixed production assets, and wages of workers, constitutes the costs of the enterprise for the production of products, taking the form of prime costs. Before the receipt of revenue, these costs are financed from the working capital of the enterprise, which is not spent, but is advanced into production. After receipt of proceeds from the sale of goods, working capital is restored, and the production costs incurred by the enterprise are reimbursed.
Separating costs in the form of prime costs makes it possible to compare the revenue received from the sale of products and the costs incurred. The purpose of investing in the production of products is to obtain net income, and if the revenue exceeds the cost, then the enterprise receives it in the form of profit.
Profit and depreciation are the result of the circulation of funds invested in production and relate to the enterprise’s own financial resources, which it manages independently. Optimal use of depreciation charges and profits for their intended purpose makes it possible to resume production on an expanded basis.
The purpose of depreciation is to ensure the reproduction of fixed production assets and intangible assets. Unlike depreciation charges, profit does not remain entirely at the disposal of the enterprise; a significant part of it goes to the budget in the form of taxes, which determines another area of financial relations that arise between the enterprise and the state regarding the distribution of the generated net income.
The profit remaining at the disposal of the enterprise is a multi-purpose source of financing its needs, but the main directions of its use can be defined as accumulation and consumption. The proportions of profit distribution between accumulation and consumption determine the development prospects of the enterprise. Depreciation charges and part of the profit allocated for accumulation constitute the financial resources of the enterprise used for its production and scientific and technical development; the formation of financial assets - the acquisition of securities, contributions to the authorized capital of other enterprises, etc. the other part of the profit used for accumulation , is directed towards the social development of the enterprise. Part of the profit is used for consumption, as a result of which financial relations arise between the enterprise and persons, both employed and not employed in the enterprise.
In modern economic conditions, the distribution and use of depreciation and profit at enterprises is not always accompanied by the formation of separate monetary funds. A depreciation fund as such is not formed, and the decision on the distribution of profits to special-purpose funds remains within the competence of the enterprise, but this does not change the essence of distribution processes reflecting the use of the enterprise’s financial resources.
The objective nature of financial relations arising during the implementation of economic activities does not exclude their state regulation. This applies to taxes levied on enterprises and affecting the amount of profit remaining at the disposal of enterprises, the procedure for calculating depreciation, the formation of financial results of economic activities and the formation of certain financial reserves.
On the basis of repayment, the enterprise attracts borrowed financial resources: long-term bank loans, funds from other enterprises, bond loans, the source of repayment of which is the profit of the enterprise.
Since enterprise finance as a relationship is part of the economic relations that arise in the process of economic activity, the principles of their organization are determined by the fundamentals of the economic activity of enterprises. Based on this, the principles of financial organization can be formulated as follows: independence in the field of financial activities, self-financing, interest in the results of financial and economic activities, responsibility for their results, control over the financial and economic activities of the enterprise.
The economic activities of an enterprise are inextricably linked with its financial activities. The enterprise independently finances all areas of its expenses in accordance with production plans, manages available financial resources, investing them in production in order to make a profit.
Directions for investing funds can be different: related both to the main activities of the enterprise in the production of products (works, services), and to purely financial investments. To obtain additional income, enterprises have the right to purchase securities of other enterprises and the state, invest funds in the authorized capital of newly formed enterprises and banks. Temporarily available funds of an enterprise can be separated from the general cash flow and placed in bank deposit accounts.
2.2. Profit is the financial result of an enterprise
The efficiency of production, investment and financial activities is expressed in financial results.
To identify the financial result, it is necessary to compare revenue with the costs of production and sales: when revenue exceeds costs, then the financial result indicates a profit. If revenue and costs are equal, it is only possible to reimburse costs - there is no profit, and therefore, there is no basis for the development of an economic entity. When costs exceed revenue, a business entity receives losses - this is an area of critical risk, which puts the business entity in a critical financial situation that does not exclude bankruptcy. Losses highlight mistakes and miscalculations in the use of financial resources for organizing production, management and sales of products.
Profit reflects a positive financial result. The desire to make a profit directs commodity producers to increase production volumes and reduce costs. This ensures the realization of not only the goals of the business entity, but also the goals of society - the satisfaction of social needs. Profit signals where the greatest value gains can be achieved, creating an incentive to invest in these areas.
Profit is a surplus product produced and necessarily sold. It is created at all stages of the reproductive cycle, but receives its specific form at the implementation stage. Profit is the main form of net income (along with excise taxes and VAT).
The amount of profit and its dynamics are affected by factors both dependent and independent of the efforts of the business entity.
Factors of the internal environment are studied and taken into account in economic practice; they can be influenced in terms of increasing profits. Internal factors include: level of management, managerial competence, competitiveness of products, wages, price level for products sold, organization of production and labor.
Almost outside the sphere of influence are external environmental factors: the price level for consumed resources, the competitive environment, barriers to entry, the tax system, government bodies, political, social, cultural, religious and others.
The amount of profit depends on the areas of activity of the economic entity: production, commercial, technical, financial and social.
Profit as a result of financial activity performs certain functions. Profit reflects the economic effect obtained as a result of the activities of a business entity. It forms the basis for the economic development of a business entity. Profit growth creates a financial basis for self-financing, expanded reproduction, and solving social and material problems of the labor collective. At the expense of profits, the obligations of enterprises (firms) to the budget, banks and other organizations are fulfilled. Profit is not only a financial result, but also the main element of financial resources. It follows that profit performs reproductive, stimulating and distribution functions. It characterizes the degree of business activity and financial well-being of the enterprise. Profit determines the level of return on advanced funds to the return on investment in assets.
In conditions of market relations, a business entity must strive, if not to obtain the maximum amount of profit, then to the amount of profit that will ensure the dynamic development of production in a competitive environment, allow it to maintain its position in the market for a given product, and ensure its survival. Solving these problems requires not only knowledge of the sources of profit, but also the determination of methods for their optimal use. Profit management acts as one of the two basic directions of financial policy and aims to maximize income from available sources of financial results while simultaneously expanding the overall range of these sources.
Making a profit is possible due to a monopoly position or the uniqueness of the product in the market for a particular product. The implementation of this source is possible due to the constant updating of the product and maintaining the share of production and sales. However, one should take into account the influence of such factors as growing competition from other business entities and the antimonopoly policy of the state.
Making a profit, which concerns almost all enterprises and firms, is associated with production and entrepreneurial activities. The implementation of this source is possible under the appropriate conditions of today's market research. The amount of profit in this case depends on the correct choice of business, on the creation of competitive conditions for the sale of goods, on production volumes, on the size and structure of production costs.
In modern conditions, the most important source of increasing profits is innovation. The implementation of this source involves constant work to change the consumer properties of products, works and services.
In some cases, enterprises may also receive a loss, which is the result of mismanagement and a low level of economic activity.
Profit and loss characterize the financial result of an enterprise and can only be determined in the accounting system.
Financial result - the final economic result of the economic activity of an enterprise is expressed in the form of profit or loss. The procedure for determining profit is regulated by the Law of the Russian Federation “On the income tax of enterprises and organizations.”
2.3. Determination of the financial results of the enterprise. Basic indicators of economic analysis
The financial performance of an enterprise is assessed using absolute and relative indicators. Absolute indicators include: profit (loss) from sales of products (works, services); profit (loss) from other sales; income and expenses from non-operating operations; balance sheet (gross) profit; net profit.
As relative indicators, various ratios of profit and costs (or invested capital - own, borrowed, investment, etc.) are used. This group of indicators is also called profitability indicators. The economic meaning of profitability indicators is that they characterize the profit received from each ruble of capital (own or borrowed) invested in the enterprise.
Further, in this paragraph of the course work, it will be shown that the financial results of the enterprise, in addition to production, also depend on the results of investment activities, financial transactions, adjustments that do not reflect cash flows, methods and procedures of the accounting policies chosen in the current period and other factors .
First, let's name the main financial results, determined by absolute values. Revenues from sales(gross income) - the total financial result from the sale of products (works, services). According to Russian regulatory documents, it includes: revenue (income) from the sale of finished products, semi-finished products of own production; works and services; construction, research work; goods purchased for subsequent sale; services for the transportation of goods and passengers at transport enterprises, etc.
Sales proceeds can be determined by the moment the money is received in the current account or cash register. This is documented by a bank statement from the company's current account or cash documents, on the basis of which cash is credited to the account.
Revenue should be measured at the fair value of the consideration received or receivable. Typically in cash. IFRS 18 emphasizes the importance of accounting for the transfer of significant risks, loss of control over a product, and reliably assessing the likelihood that an entity will receive an economic benefit as a result of a given transaction. Revenue from the provision of services should be reflected in accordance with the stage of completion of the work as of the reporting date. An enterprise is required to disclose information about the accounting policies used to record revenue, including methods for determining the stage of completion of work. In addition, an enterprise must disclose information about the amount of each significant item of revenue recognized during a given period, incl. revenue that arises from the sale of goods, provision of services, interest, royalties and dividends. This standard also requires disclosure of the amount of revenue arising from the exchange of goods or services (for example, in a barter exchange).
Russian enterprises can also determine sales revenue and financial results at the time of shipment of products (performance of work, services), which is documented in the relevant shipping documents.
The difference between the proceeds from the sale of products (works, services) without value added tax and excise taxes and the production costs of sold products (works, services) is called gross profit from implementation.
The overall financial result (profit, loss) as of the reporting date, which is also called balance sheet profit, are obtained by calculating the total amount of all profits and all losses from the main and non-core activities of the enterprise. Balance sheet profit includes: profit (loss) from sales of products, works, services; profit (loss) from the sale of goods; profit (loss) from the sale of tangible working capital and other assets; profit (loss) from the sale and other disposal of fixed assets; income and losses from foreign exchange differences; income from securities and other long-term financial investments, including investments in the property of other enterprises; expenses and losses associated with financial transactions; non-operating income (losses).
Balance sheet profit minus taxes (mandatory payments) is called clean profit .
In order to predict the value of profit and manage it, it is necessary to conduct an objective systematic analysis of its formation, distribution and use. Such an analysis is important for both internal and external partner groups, since profit growth determines the growth of the enterprise’s potential capabilities, increases the income of founders and owners, and characterizes the financial condition of the enterprise.
Main goals analysis of financial results using traditional methods includes an assessment of the dynamics of profit and profitability indicators for the analyzed period; analysis of the sources and structure of balance sheet profit; identifying reserves for increasing the enterprise’s balance sheet profit and net profit spent on paying dividends; identifying reserves for increasing various profitability indicators.
In order to accomplish these tasks, the following is carried out: assessment of the implementation of the plan based on financial indicators (profit, profitability and funds allocated for the payment of dividends) and study of their dynamics; a general assessment of the implementation of the plan for balance sheet profit, a study of its dynamics in comparison with the corresponding base period, consideration of its structure; determining the influence of individual factors on profit from sales of products (works and services); consideration of the composition of non-operating income left at the disposal of the enterprise and losses reimbursed from balance sheet profit; determining the impact of non-operating income and losses on balance sheet profit; identification of factors influencing the profitability of products and production; identification of reserves for further increase in profit, funds allocated for the payment of dividends, elimination of non-operating losses and expenses; identifying reserves for increasing profitability.
A preliminary analysis of financial indicators consists of comparing their values with basic values, as well as studying their dynamics for the reporting period and for a number of years. As basic values, recommended standards can be used, averaged over a time series of indicator values of a given enterprise, relating to past periods that are favorable from the point of view of financial condition, indicator values calculated according to the reporting data of successful enterprises.
2.4. Enterprise financial statements
Financial statements give an idea of the performance of any enterprise. Financial reporting is a set of reporting forms compiled on the basis of accounting (financial) accounting data. Financial reporting allows you to assess the property status, financial stability and solvency of the company and other results necessary to justify many decisions (for example, the feasibility of granting or extending a loan, the reliability of business relationships). Financial reporting must satisfy the requirements of external and internal users.
2.4.1. Elements and currency of financial reporting in international standards
The financial statements must include: a balance sheet, an income statement, a statement of changes in equity, or a statement of changes in equity not related to contributions from owners or distributions to owners, a statement of cash flows, a statement of accounting policies and explanatory notes. IFRS 1 does not provide guidance on the standard format for preparing financial statements, although the appendix to this document provides examples. However, this document specifies the minimum amount of information required to be included in the financial statements and explanatory notes. This standard also requires the use of comparative figures for all items unless a standard specifically permits or requires otherwise. When preparing financial statements, the reporting currency is usually the local currency. If a different currency is used or the reporting currency is changed, IAS 21 requires the reasons for this to be disclosed.
In the IFRS Committee newsletter Insight(June 1998) emphasizes that entities can no longer, as in the past, claim that their financial statements comply with IFRS, with some specific exceptions. According to the requirements of IFRS 1, if the financial statements do not comply with all the requirements of each applicable standard and each applicable SIC interpretation, they cannot be declared to comply with IFRS.
Based on reporting data, the needs for financial resources are determined; assess the effectiveness of the capital structure; predict the financial results of the enterprise, and also solve other problems related to the management of financial resources and financial activities. The latter concerns primarily financial firms involved in the issuance and placement of securities.
All Russian enterprises, regardless of their form of ownership, present: “Balance sheet of the enterprise” (form No. 1); “Report on financial results and their use” (F. No. 2); “Reference to the report on financial results and their use”; “Appendix to the balance sheet of the enterprise” (form No. 5). “Enterprise Balance Sheet” contains information for assessing the property and financial condition of the company. The balance sheet determines the final financial result of the company's activities (profit or loss). Balance sheet data serves as the basis for operational financial planning; used to control cash flows; they are necessary for tax authorities, credit institutions, and government bodies. The “Statement of Financial Results and Their Use” contains information about profits received from production, investing and financial activities. It complements the information contained in the balance sheet. This report consists of the following sections: financial results; use of profits; payments to the budget; costs and expenses taken into account when calculating income tax benefits. In combination with the balance sheet, the “Statement of Financial Results and Their Use” allows you to calculate and analyze the profitability indicators of the company.
The appendices to the balance sheet provide the following data: movement of funds; movement of borrowed funds; accounts receivable and accounts payable; composition of intangible assets; availability and movement of fixed assets; financial investments; social indicators; movement of funds to finance capital investments and other financial investments.
2.4.2. Financial analysis in international standards
IFRS 1 encourages management to provide, in addition to reporting, an analysis of the financial performance and position of the enterprise, as well as the key environmental uncertainties with which management has to deal. This analysis corresponds in content to Management Discussion and Analysis (MDA) or Operational and Financial Analysis (OFA). These forms of analysis are already mandatory for US and UK listed businesses. This analysis may include identifying the main factors influencing the enterprise's performance, analyzing changes in the environment in which the enterprise must operate, dividend policies, and financing and risk management policies.
The International Organization of Securities Commissions (IOSCO) is also promoting the "internationalization" of financial reporting. In September 1998, IOSCO issued "International Disclosure Standards by Foreign Issuers for International Offerings and Initial Listings of Shares". These disclosure rules may also apply to annual reports. This set of rules includes recommended standards for the provision of information, incl. operational and financial analysis, as well as discussion of development plans. Such information in non-financial reporting should improve comparability, provide a high level of investor protection and provide the quality analysis investors need to make decisions.
3. Reserves for improving financial performance
3.1.Sources of capital growth
We have already said that there are many factors affecting the profit of an enterprise. In addition, profit, as is known, is only one of the sources of increasing the capital of an enterprise. Other sources are: credits, borrowings, issue of securities, deposits of founders, others.
In this case, the key indicators, along with profitability indicators, are capital turnover indicators. This approach becomes even more relevant in conditions of inflation. It is no coincidence that in the United States, since 1988, a standard has been introduced according to which enterprises, instead of preparing a statement of changes in financial position before that date, must prepare a cash flow statement. In Russia there is also a corresponding regulatory provision (see Form No. 4 BU). This approach makes it possible to more objectively assess the capital of an enterprise (remember the interpretation of capital as interpreted by supporters of the “fund theory”).
An analysis of the intensity of capital turnover can be carried out on the basis of the “Cash Flow Report” - a financial reporting document (Form No. 4 BU), which reflects the receipt, expenditure and net changes in cash in the course of current business activities, as well as investment and financial activities for a certain period.
· Calculate current assets and current liabilities based on the cash flow method. That is, when adjusting the value of current assets, their increase should be subtracted from the amount of net profit, and their decrease for the period should be added to net profit.
· When adjusting short-term liabilities, on the contrary, their growth should be added to net profit, since this increase does not mean an outflow of funds; the decrease in current liabilities should be deducted from net income.
· Adjustment of net income for expenses that do not require payment of cash. To do this, the corresponding expenses for the period must be added to the amount of net profit. An example of such expenses is depreciation of tangible non-current assets.
· Eliminate the impact of profits and losses received from non-core activities, such as results from the sale of non-current assets and securities of other companies.
3.2. Enterprise accounting policy
Investing activities primarily include transactions related to changes in non-current assets. This is the purchase and sale of real estate, securities, the provision and receipt of long-term loans, and the receipt of funds from loan repayments.
Financial transactions, such as changes in the company's long-term liabilities and equity, sales and purchases of its own shares, issuance of company bonds, payment of dividends, and the company's repayment of its long-term liabilities are recorded in a special section of the report. Each section separately provides data on the receipt of funds and their expenditure for each item, on the basis of which the total change in funds at the end of the period is determined as the sum of funds at the beginning of the period and changes during the period.
a) depreciation of fixed assets and intangible assets ( A);
b) loss from the sale of fixed assets and intangible assets (U oa);
c) profit from the sale of fixed assets (P os);
d) costs of research and development (R&D).
The amount of adjustment to reported profit will be the value DP:
DP = A+ U oa - P os - R&D.
The total “cash” profit or real cash inflow will be the value of Pd:
front = Pch + DP,
where: PD - change in cash balance; Pch - reporting profit according to f. No. 2;DP - adjustment amount.
The reason for the discrepancy between the values of Pl and Pd is, as shown, the method of accounting for income. Thus, in order to adjust the value of the final financial result in the desired direction, an enterprise can use various methods of accounting for income and expenses. Currently, Russian laws governing accounting rules allow the use of several options for valuing certain types of property and forming the cost of products (works, services) at the discretion of the enterprise management. According to the Accounting Regulations “Accounting Policy of an Enterprise”, approved by Order of the Ministry of Finance of the Russian Federation No. 100 dated June 28, 1994, any enterprise has the opportunity to independently select certain accounting transactions for a number of accounting elements, which directly affect the results of its economic activities. Therefore, a reasonable choice of individual accounting policies allows an enterprise to reduce costs and minimize taxes.
A study of the behavior of 127 firms in difficult situations showed that choosing accounting methods that produce more favorable results, that is, showing higher accounting profits, is not so tempting for the management of such enterprises. In those years when unplanned layoffs of senior managers occurred at enterprises, enterprises seemed to have incentives to prefer accounting methods that lowered financial results (this in a certain way could help in negotiations with creditors, trade unions, lobbying for favorable decisions in the government, etc. .).
However, a comparative analysis of the reporting of successful companies and companies in difficult situations showed that the choice of calculation methods differs little in both cases.
The accounting policy is approved by order of the head of the enterprise and is subject to mandatory disclosure (announcement) in the explanation to the annual report submitted to the tax authorities. The announced accounting policy of the enterprise must be stable for a number of years. Changes in accounting policies can only occur in the following cases: reorganization of an enterprise (merger, division, accession); change of owners; changes in the legislation of the Russian Federation and the system of regulatory regulation of accounting in the Russian Federation; development of new accounting methods.
In practice, changes in legislation occur more often than once a year, therefore tax inspectorates require that the principles of accounting policies be maintained for at least one financial year, and changes in accounting policies when moving to a new reporting year must be justified and explained. In addition, it is required that the consequences of changes in accounting policies not related to changes in the legislation of the Russian Federation be assessed in monetary terms.
In this regard, the preparation and announcement of accounting policies is a serious undertaking, the consequences of which directly affect the financial position of the enterprise. The choice of one or another method of assessing property, determining certain calculated values leads to different tax bases, amounts of taxes subject to contribution to the budget, and differences in other final indicators of the enterprise.
It should be taken into account that, once chosen, an ineffective accounting policy can lead an enterprise to financial losses throughout the reporting year. Therefore, the choice of an effective accounting policy by an enterprise is one of the important procedures for planning financial and economic activities.
From the point of view of determining the financial result, the following elements of accounting policy are of greatest interest:
· Establishing the boundary between fixed and working capital. This choice further determines the criteria for dividing costs into fixed and variable, and, therefore, the value of the cost of production in the current period.
· Valuation of inventories and calculation of the actual cost of material resources in production.
3.2.2. Method for assessing material resources
The method of assessing material resources written off for production at average cost is traditional for domestic practice, while the FIFO and LIFO methods provided for by international standards and Russian legislation in force today are relatively new for Russia.
In conditions of inflation, that is, with rising prices for material resources, the FIFO method leads to an understatement of costs and an overstatement of the balance of material resources on the balance sheet. The LIFO method under the same conditions overestimates the cost and understates the balance of material resources on the balance sheet. Accordingly, the use of the LIFO method, all other things being equal, will reduce the amount of taxes on profit and property of the enterprise, since the taxable base includes the balances of material resources reflected at the beginning of the reporting periods (3, 6, 9 and 12 months).
The LIFO method allows an enterprise to better adapt to inflation conditions and save money by understating the taxable profit of the reporting period. In the next reporting period, previously saved money will depreciate and cannot be used with the same benefit as in the previous reporting period.
The FIFO method leads to an understatement of the cost of the reporting period and, consequently, to an overstatement of profits. It can be used by enterprises that have income tax benefits (whose workforce employs 70% or more disabled people and pensioners), as well as enterprises whose goal at this stage is to finance development. In addition, the FIFO method can be used by enterprises whose prices for services are lower than those of competitors and whose profit level is low. In this case, the use of the FIFO method will allow these enterprises to avoid sanctions from the tax authorities for selling services below their cost.
3.2.3. Methods for calculating depreciation of low-value and high-wear items (IBP)
The first method provides for depreciation in the amount of 50% of the initial cost of MBPs transferred from the warehouse to operation and in the amount of the last 50% of the cost (minus the cost of these items at the price of their possible use) upon their disposal.
The second method provides for the accrual of depreciation in the amount of 100% upon transfer of the MBP from the warehouse to operation.
The choice of one of the possible methods depends on the number of small business enterprises and their share in the total value of the enterprise’s property, on the intensity of the movement of means of labor in circulation, as well as on the goals of the enterprise’s financial policy.
With the first method of calculating depreciation in the case of a significant number of small and medium-sized equipment and their intensive movement, the cost of services in the reporting period is relatively underestimated and more evenly distributed throughout the year. At the same time, the property tax of the enterprise may increase accordingly, since the residual value of the IBP is taken into account in the base subject to this tax.
With the second method of calculating depreciation of the IBP under the same conditions, the cost of services is relatively overestimated; the property tax of the enterprise is correspondingly reduced due to a decrease in the residual value of the IBP.
The choice of the method for calculating depreciation of the IBP is especially relevant for public catering establishments, where dishes, cutlery and other equipment are taken into account as part of the IBP, as well as for hotels where bed linen is taken into account as part of the IBP.
3.2.4. Accounting for repair costs of fixed assets
To evenly include in the cost of products (works, services) the costs of all types of repairs of fixed assets, enterprises can create a reserve of funds (repair fund), based on the book value of fixed assets and deduction standards approved in the prescribed manner by the enterprises themselves. This action is carried out in accordance with clause 10 of the Regulations on Accounting and Reporting, approved by Order of the Ministry of Finance of the Russian Federation No. 170 dated December 26, 1994.
The use of this option ensures a more uniform formation of product costs at enterprises with significant costs for periodically carried out repairs of fixed assets. This allows us to avoid cases of selling products at a price not higher than cost and, therefore, the necessary additional assessment of taxes on value added, on profits, on road users, based on market prices for products sold.
The second possible option for accounting for the costs of repairing fixed assets is to account for them as part of deferred expenses. Costs for the repair of fixed assets, with this accounting option, are included in the cost of products (work, services), based on the standard established by the enterprise, reflecting the difference between the total cost of repairs and the amount attributed according to the standard to the cost of production (work, services) as part of expenses future periods, which also makes it possible to achieve a fairly uniform formation of costs.
The third possible option for accounting for costs is to include them in the cost of products (works, services) of the reporting period in which the repair work was carried out. This option for accounting for the costs of repairing fixed assets is the simplest. It can be used by enterprises with small costs for repair work that do not lead to significant fluctuations in product costs, or in cases where expensive repairs of fixed assets are planned for a period during which the enterprise is expected to receive significant revenue from product sales. In the latter case, the inclusion of costs for the repair of fixed assets in the cost of production will reduce taxable profit and, consequently, the income tax of the enterprise.
3.2.5. Methods for grouping and including costs in the cost of goods sold, products (works, services)
The legislation of the Russian Federation allows two methods of grouping and including costs in the cost of goods sold, products, works, and services: the traditional method of forming the full cost of products and the method of direct calculation - “direct costing”.
A) Traditional way. The essence of the traditional method is to monthly determine the full actual cost of products, works, services by grouping all expenses associated with the production of the relevant products, according to the method of inclusion in the cost of certain types of products, works, services. This sign of grouping expenses involves dividing them into direct and indirect.
b) Direct costing method. In accordance with the legislation of the Russian Federation, this method can be used in the Russian Federation from 01.01.96. Let us recall that this method is based on grouping costs depending on the volume of production, performance of work, and provision of services.
The “direct costing” system is an attribute of a market economy. It has achieved a high degree of integration of accounting, analysis and management decision-making. The main attention in this system is paid to studying the behavior of resource costs depending on changes in production volumes, which allows you to flexibly and quickly make decisions on normalizing the financial condition of the enterprise. The most important analytical capabilities of the direct costing system are as follows:
· optimization of profits and product range;
· determining the price of new products;
· calculation of options for changing the production capacity of the enterprise;
· assessment of the efficiency of production (purchase) of semi-finished products;
· assessment of the effectiveness of accepting an additional order, replacing equipment, etc.
For the purposes of profit and cost management, costs are classified according to various criteria. The essence of the “direct costing” system is the division of production costs into variable and constant, depending on changes in production volume. Variables include costs, the value of which changes with changes in production volume:
· costs of raw materials and materials;
· wages of main production workers;
· fuel and energy for technological purposes;
· other expenses directly related to the production of products, and therefore proportional to its volume.
Depending on the ratio of the growth rate of production volume and various elements of variable costs, the latter, in turn, are divided into:
· proportional,
· progressive,
· digressive.
It is customary to refer to constant costs those costs, the value of which does not change with changes in production volume:
· rent,
interest on loans,
· accrued depreciation of fixed assets,
· some types of salaries of managers of the enterprise, company and other expenses.
It should be noted that the division of costs into fixed and variable is somewhat arbitrary, since many types of costs are semi-variable (semi-permanent) in nature. However, the disadvantages of conventional cost sharing are many times offset by the analytical advantages of the “direct costing” system.
The “direct costing” method is essentially based on subtracting variable (conditionally variable) costs from sales revenue and determining the gross profit margin, which differs from real profit by the amount of fixed costs. Using the “direct costing” method, the goals of accounting (financial) and production (managerial) accounting are brought closer together, since this method is widely used in the economic analysis of the economic activities of enterprises and has the following advantages:
1. allows you to avoid complex calculations for the distribution of fixed costs between different types of products;
2. allows you to write off all fixed costs in the current reporting period and, as a result, reduces income tax in the reporting period by reducing the amount of profit from sales by the amount of fixed costs compared to the traditional method of grouping and writing off costs as products are sold;
3. allows you to evaluate the balances of products, work not performed, services not provided at semi-variable costs, which reduces business risk in the absence of sales in the future period.
Until the end of 1995, the legislation of the Russian Federation allowed the use of two methods for determining the moment of sale and financial result for both accounting and tax purposes:
2. at the time of shipment of goods, products, performance of work, provision of services and presentation of payment documents to buyers (customers) (the “accrual” method).
Using these methods in accounting, the presence and condition of the enterprise's receivables was assessed. Moreover, the “cash” method provided assessment of receivables at actual cost, and the “accrual” method provided assessment at sales prices. The enterprise’s choice of method for accounting for sales revenue depended on business conditions and the nature of the contracts concluded.
In 1996, there was a change in the procedure for determining sales revenue, according to which, for accounting purposes, only one possible method of determining the moment of sale and financial result is used - at the time of shipment and presentation of settlement documents to buyers (customers), that is, the “accrual” method.
An exception is provided for cases where the supply agreement stipulates a different moment from the general procedure for the transfer of the right to own, use and dispose of shipped products (goods) and the risk of their accidental destruction on the way from the organization to the buyer (customer).
At the same time, for tax purposes enterprises are allowed to determine sales revenue, both at the time of payment and at the time of shipment goods, products, performance of work, provision of services.
The method for determining sales revenue for accounting and taxation purposes is established by the enterprise for a long period based on business conditions and concluded contracts. Tax purposes include the calculation of the following taxes:
· income tax;
· value added tax:
· tax on road users;
· tax on the maintenance of housing stock and social and cultural facilities,
· other taxes, the basis for calculation of which is revenue from the sale of goods, products (works, services).
Thus, if an enterprise, in an order on accounting policy for the current year, announced the “accrual” method for determining sales revenue for tax purposes, then this enterprise’s accounting data coincides with the tax base, and no questions arise regarding determining sales revenue for tax purposes .
An enterprise that, in its accounting policy for the current year, has declared a “cash” method for determining sales revenue for tax purposes finds itself in a different position, since this enterprise has a discrepancy between accounting data and the taxable base.
This enterprise must calculate two amounts of sales revenue: one - directly for the purposes of accounting and assessing the financial result, determined by the accrual method, and the second - for tax purposes, which is obtained by adjusting the first value.
In addition, for tax purposes, the financial result itself, which represents profit from sales, must be adjusted, since this indicator is used in calculating income tax.
Adjustment of sales revenue and financial results to obtain taxable bases is carried out in several stages:
1) sales revenue for paid products is calculated using the “cash” method or using the formula:
TR k = Q he + Q o p – Q o to where
TR k – sales revenue calculated by the “cash” method; Q it is the cost of the balance of shipped but unpaid products at the beginning of the reporting period; Q o p – cost of all shipped products for the reporting period; Q o k - the cost of the balance of shipped but unpaid products at the end of the reporting period;
2) the adjusted amount of taxes subject to contribution to the budget in the reporting period is calculated, the basis for the calculation of which is the proceeds from sales (value added tax, tax on road users, tax on the maintenance of housing stock and social and cultural facilities), according to the formula:
T = TR kk × t, Where
TR kk – adjusted sales revenue, calculated by the “cash” method; t- the rate of the corresponding tax;
3) the adjusted value of the financial result (F) is calculated r) according to the formula:
| F r= F f × | TR To | , Where |
| TR n |
F f- financial result obtained on the basis of financial accounting data; TR k - sales revenue determined by the “cash” method; TR n - sales revenue determined by the accrual method.
In this case, there are two differences that must be taken into account:
· the difference between the amount of value added tax (VAT) to be received from buyers for goods, products, works, services sold, and its amount to be transferred to the budget according to calculation;
· between the financial result (profit from sales), obtained on the basis of accounting data, and the financial result (profit from sales), adjusted for tax purposes in a given reporting period;
If an enterprise has significant accounts receivable, then for tax purposes it should declare in its accounting policy a “cash” method for determining revenue from the sale of goods, products, works, and services. This will significantly save working capital in the current reporting period. Moreover, the savings will be not only on income tax, but also on value added tax in terms of the cost of goods (work, services) not exempt from VAT.
4. Monitoring the results of the financial and economic activities of the enterprise
4.1. Objectives of monitoring the performance of an enterprise
Increasing competition in global and domestic markets, rapid development and change in technology, growing business diversification, increasing complexity of business projects and other factors determine new requirements for the internal control system of an enterprise. In modern conditions, internal control at an enterprise must be present at all levels of management, since it is a guarantee of the successful operation of the enterprise.
Control should be aimed at ensuring key performance indicators at all stages of enterprise management. In this regard, the purpose of control at the enterprise is to identify possible deviations of planned indicators, establish the causes of these deviations and develop measures to eliminate them.
An analysis of the activities of a number of Russian enterprises showed that when building a control system at an enterprise, it is recommended to establish three-stage control: preliminary, current, final. The establishment of three-stage control is due to the need to increase the adaptability of the enterprise to changes in the external and internal environment, including through control as a feedback function not only for the entire management cycle, but also at each of its stages (Fig. 3).
Rice. 3. Place of control in the enterprise management cycle
This will significantly increase the efficiency of control actions on adjusting the enterprise’s goals and adapting plans to the changing situation.
4.2. Tasks of monitoring the results of an enterprise's activities
To achieve the set control goal, it is necessary to formulate control tasks at the enterprise in relation to the stages of the management cycle.
At the preliminary control stage, control is carried out:
· the process of forming goals (correct choice of goals, checking them for validity and consistency between interested individuals and groups, adequacy of compliance with quantitative indicators of the degree of achievement of set goals, etc.);
· restrictions used when setting goals; forecasts necessary for setting goals;
· plans (validity of planned targets, checking plans for completeness and consistency, turning planned values into controllable ones, establishing acceptable limits for deviations of controlled values, realism, adaptability, etc.).
Planning control allows you to evaluate and improve the quality of the plan. By assessing the planned values, you can assess the reality of the plan and the reality of the conditions considered during its development, the situations in which it was drawn up (the degree of stability of the enterprise in the market, price dynamics, the degree of demand for products, etc.), as well as possible errors in drawing up the plan . Moreover, in addition to inaccurate assessments of possible situations, there may be other reasons for deviations from the plan, for example, errors in calculations, heterogeneity in the content of planned and actual indicators, etc. Identifying these reasons will make it possible to improve the planning process itself and coordinate plans with reality. The sooner a change in the situation is recorded, the sooner plans can be updated and correlated with reality.
Monitoring the implementation of set goals and objectives allows us to identify possible errors and shortcomings in management and propose measures to eliminate them.
At the stage of final monitoring of the enterprise’s activities, results are summed up for the enterprise as a whole in achieving its goals and measures are developed to eliminate possible deviations in the future.
Thus, in a broad sense, the control function includes the analysis and measurement of quantitative and qualitative characteristics (indicators) of the enterprise’s activities, as well as identifying the reasons for deviations of control values from planned ones in order to increase the enterprise’s adaptability to the emergence of possible unfavorable situations.
4.3. Model for monitoring enterprise performance results
Taking into account the comments made, it is advisable to present the control model within the enterprise management system in the form of Fig. 4.
Rice. 4. Control organization model
The main elements of the control system model are:
· objects of control - plans and budgets of the enterprise and its structural divisions;
· subjects of control - indicators of income and expenses, changes in balance sheet items, systems of indicators characterizing the activities of the enterprise as a whole or in individual areas, etc.;
· subjects of control - the management of the enterprise and its structural divisions, the management of the enterprise, which monitors compliance with budgets;
· budget control technology - control procedures and their implementation procedure necessary to identify deviations of controlled indicators and values from the planned ones.
This control model should be based on information support for control activities, including operational, planned, regulatory and reference information, classifiers of technical and economic information, documentation systems (unified and special). The complexity of collecting real information about financial and economic activities depends on the availability of automated accounting and the development of information technology in general.
4.4. General scheme of technology for monitoring enterprise performance results
Technologically, in its most general form, the control process includes the implementation of the activities presented in Fig. 5.
Rice. 5. Technological diagram of the control process
4.4.1. Definition of benchmarks and values
When determining control values, two most important questions should be answered: how many and what indicators and quantities should be monitored.
Management should try to find an acceptable approach to determining the rational number of indicators assigned personally to the manager for control. Despite the fact that the choice of the number of indicators largely depends on the qualitative analysis of the activities of the enterprise (division), it is possible to indicate the upper limit of their number. This problem can be solved on the basis of typological groupings. Calculations show that for an integral assessment of the state of an enterprise (division), no more than 4-5 indicators can be used.
To optimize the structure of controlled indicators within integral indicators, it is advisable to use the ABC analysis method, which is based on the Pareto principle.
For example, the analysis of the cost structure of the photo printing factory "Expertphoto" (Table 1) identified 10 integral types of costs (indicators), of which, according to the ABC analysis method, it is recommended to leave 4 controlled indicators: production costs, storage of raw materials, sorting of finished products and receipt orders that account for more than 90% of costs.
Table 1
Cost structure of the photo printing factory "Expertphoto"
4.4.2. Detection of deviations
The next step in monitoring technology is to identify deviations. Determining variances helps to identify areas of effectiveness or ineffectiveness of the entire activity or individual areas and functions of the organization.
The source of information about actual values and deviations of controlled indicators and values is the enterprise's accounting system, and the source of data about planned values is the enterprise's system of plans and budgets. It is quite labor-intensive and impractical to identify the causes of all deviations. The object of analysis should be only those deviations that significantly affect the achievement of the final goal.
After analyzing the causes of deviations, the following main options for action are possible (Fig. 6):
Rice. 6. Dynamics of changes in the controlled indicator
a) a decision on deviation analysis is made only after it has been established that the controlled indicator exceeds the deviation limits. In this regard, a variant approach to planning is possible;
b) a decision to analyze the causes of deviations is made only after establishing a stable trend (forecast) of changes in the controlled indicator in the direction of going beyond one of the controlled boundaries Xmax or Xmin. In this case, an adaptive approach to planning the enterprise’s activities is advisable;
c) a decision to analyze the causes of deviations is made for some, less important, indicators only after the controlled indicator goes beyond the deviation limits, and for other, more important ones, only after establishing a stable trend of change in the controlled indicator towards one of the controlled limits as a result of the forecast made .
For this case, an adaptive-situational approach to planning the activities of an enterprise is desirable.
The use of one or another of the above options depends on the specific situation at the enterprise. If the time delay in considering the causes of deviations is not so important, then, probably, option a) will be more preferable than others, since it does not require the use of rather complex and expensive forecasting methods. Conversely, if a time delay in identifying the causes of deviations is extremely undesirable, then option b) would be more preferable.
Naturally, option c) is more universal, since in accordance with it the entire set of indicators is divided into two groups: less and more important, decisions on which are made individually. The advantage of this approach is also that the analysis of the causes of deviations and the development of measures to eliminate deviations are carried out in advance. However, the use of this option is difficult if the enterprise has an undeveloped information base about its condition and there are no proven methods for predicting changes in indicators.
Each top-level indicator is a function of lower-level indicators. The deviation of the values of the lower level of the pyramid is an explanation of the deviation of the values of the other - the nearest higher level. Splitting key indicators into factors (multipliers) and their components makes it possible to identify and give a comparative description of the main reasons that influenced the deviation of a particular indicator and set requirements for the magnitude of its deviation. In addition, the pyramidal structure of indicators and their deviations allows you to quickly receive and communicate information about the achieved indicators in each department to a senior manager and take appropriate measures.
Using the idea of a pyramidal structure of indicators, we can consider the order of its construction using the example of a two-level system for monitoring indicators and their deviations (Fig. 7).
Rice. 7. Scheme for monitoring indicators by management levels
4.4.3. Deviation Analysis
Deviation analysis is a kind of early warning subsystem of unwanted deviations of actual indicators and values from the planned ones. Its task is to identify the reasons for the occurrence of such deviations in the activities of the enterprise, assess their significance for the future and develop appropriate corrective measures.
Moreover, one should distinguish between analysis oriented toward the past and analysis oriented toward the future.
The reasons for possible deviations can be divided into two main groups:
· the first group of reasons relates to errors regarding forecasting the state of the enterprise’s external environment during the implementation of the planning process, in particular regarding the behavior of consumers and competitors;
· the second group of reasons is hidden in the internal environment of the enterprise and is associated with “mistakes” in the financial and economic activities of the enterprise, in particular with the determination of standards for the consumption of raw materials and materials per unit of output.
Such reasons should be identified in the process of constant ongoing monitoring of the implementation of plans and budgets, and on their basis, appropriate proposals and measures should be developed to bring the enterprise to the planned indicators or to adjust the indicators themselves.
Thus, in this section of my course work we examined the goals, objectives and model for monitoring the results of the financial and economic activities of the enterprise.
5.1. Dynamics and structure of financial results of the enterprise and analysis of profit by factors
The financial results of the enterprise are reflected in the system of indicators. A large number of indicators characterizing the financial results of an enterprise creates methodological difficulties for their systematic consideration. Differences in the purpose of indicators make it difficult for each participant in the commodity exchange to choose those that best satisfy his needs for information about the real state of a given enterprise. For example, the administration of an enterprise is interested in the amount of profit received and its structure, factors influencing its value. Tax inspectorates are interested in obtaining reliable information about all components of balance sheet profit: profit from the sale of products, profit from the sale of property, non-operating results of the enterprise’s activities, etc. The analysis of each component of the enterprise’s profit is not abstract, but quite concrete, because it allows the founders and shareholders choose significant areas for enhancing the enterprise’s activities. For other participants in market relations, profit analysis allows them to develop the necessary behavior strategy aimed at minimizing losses and financial risk from investing in a given enterprise.
Analysis of the financial results of an enterprise includes the following research elements as mandatory elements:
1. changes in each indicator for the current analyzed period;
2. structures of relevant indicators and their changes;
3. dynamics of changes in financial performance indicators for a number of reporting periods (at least in the most generalized form).
To analyze and assess the level and dynamics of the financial performance indicators of the enterprise, a table is compiled that uses the enterprise reporting data from Form No. 2.
Table data 2 show that in the reporting period the company achieved good results. Balance sheet profit increased by 118%, and the net profit remaining at the disposal of the enterprise increased by the same amount. A positive factor in the growth of balance sheet profit was an increase in profit from product sales due to an increase in sales volumes and a relative decrease in production costs. Further analysis should specify the reasons for the change in profit from product sales for each factor.
Factor analysis of profit from sales of products (works, services)
Profit from the sale of commercial products is generally influenced by the following factors:
· change in sales volume;
· change in product structure;
· changes in selling prices for sold products;
· changes in prices for raw materials, materials, fuel;
· change in the level of costs of material and labor resources.
Below is a formalized calculation of the influence of these factors on profit from product sales.
table 2
ANALYSIS OF THE LEVEL AND INDICATORS OF FINANCIAL RESULTS OF THE ENTERPRISE
1. Calculation of the total change in profit (P) from product sales:
ΔP=P 1 - P 0, where P 1 is the profit of the reporting year; P 0 - profit of the base year.
2. Calculation of the impact on profit of changes in selling prices for sold products (DP 1):
where is sales in the reporting year in prices of the reporting year, where p 1 is the price of the product in the reporting year; j 1 - number of products sold in the reporting year;
Sales in the reporting year in prices of the base year, where p 0 is the price of the product in the base year.
Calculation of the impact on profit of changes in production volume () (the actual production volume assessed at the planned (base) cost):
DP 2 = P 0 K 1 - P 0 = P 0 (K 1 -1), where P 0 is the profit of the base year; K 1 - growth rate of product sales volume:
K 1 = S 1.0 / S 0,
where S 1.0 is the actual cost of products sold for the reporting period in prices and tariffs of the base period;
S 0 - cost of the base year (period).
4. Calculation of the impact on profit of changes in production volume caused by changes in the structure of products (DP 3):
DP 3 = P 0 K 2 - P 0 K 1 = P 0 (K 2 -K 1)
where K 2 is the growth rate of sales volume estimated at selling prices;
K 2 = N 1.0 / N 0
where N 1.0 - sales in the reporting period at prices of the base period;
N 0 - sales in the base period.
5. Calculation of the impact on profit of savings from reducing product costs (DP 4):
DP 4 = S 1.0 - S 1
where S 1.0 is the cost of goods sold for the reporting period in prices and conditions of the base period;
S 1 - actual cost of products sold for the reporting period.
6. Calculation of the impact on profit of savings from reducing product costs (DP 5):
DP 5 = S 0 K 2 - S 1.0.
A separate calculation based on accounting data determines the impact on profit of changes in prices for materials and tariffs for services (DP 6), as well as savings caused by violations of economic discipline (DP 7). The sum of factor deviations gives the total change in profit from sales for the reporting period, which is expressed by the following formula:
where DP is the total change in profit;
DP i - change in profit due to the i-th factor.
In table 2 provides initial data and a digital example of analyzing profits from product sales.
Let's determine the degree of influence of factors on profit:
1. Changes in selling prices for products:
The difference is calculated between revenue from sales of marketable products at current prices and sales in the reporting year at prices of the base year. In the example given, it is equal to
31835 rubles (243853–212000).
Additional profit was received mainly as a result of inflation. Analysis of accounting data will reveal the reasons and magnitude of overpricing in each specific case;
2. Changes in prices for materials, tariffs for energy and transportation, tariff rates (salaries) and remuneration:
We use information about the cost of production. Prices for materials, energy and transportation tariffs were increased by 10,000 rubles, wages - by 9,910 rubles, which resulted in a decrease in profits by
19910 rubles = (10000+9910).
3. Violation of economic discipline:
The influence of these factors is established by analyzing the savings generated as a result of violation of standards, technical conditions, failure to implement the action plan for occupational health and safety, etc. In this case, no additional profit was identified due to these reasons
Table 3 PROFIT ANALYSIS BY FACTORS
4. Increase in production volume assessed at the base full cost (product volume itself):
The growth rate of product sales volume is calculated based on the base cost. In our case it is equal
1,210435 = (151682:125312).
Then we adjust the basic profit and subtract the basic profit amount from it:
32705 * 1.210435 - 32705=+6882 rub.
5. Increase in production volume due to structural changes in the composition of products:
We determine the difference between the growth rate of product sales volume estimated at selling prices and the growth rate of product sales volume estimated at base cost.
6. Reducing costs per 1 ruble of production:
We find the difference between the basic full cost of actually sold products and the actual cost, calculated taking into account changes in prices for material and other resources, and reasons associated with violations of economic discipline. In our case, this influence was
158.0 rub.
7. Change in cost due to structural changes in the composition of products:
We find the difference between the base full cost, adjusted for the growth rate of production volume, and the base full cost of actually sold products:
125312 1.341628–151682=+16444 rub.
The total profit deviation is 39,714 rubles, which corresponds to the sum of factor influences. Thus, in our case, the main factors causing profit growth are:
· inflation;
· increase in production volume by 6882 rubles;
· change in cost due to structural changes by 16,444 rubles.
5.2. Optimization of production volume, profits and costs in the system
direct costing
A necessary condition for making a profit is a certain degree of development of production, ensuring that the proceeds from the sale of products exceed the costs (expenses) of its production and sales. The main factor chain that forms profit can be represented by the following diagram:
Costs -> Production Volume -> Profit
The components of this scheme must be under constant attention and control. This problem is solved on the basis of organizing cost accounting according to the system that we described earlier - “direct costing”, the importance of which is increasing in connection with the transition to a market economy.
In foreign practice, a number of effective practical methods have been proposed to increase the objectivity of dividing costs into fixed and variable:
· method of the highest and lowest points of production volume for a period;
· method of statistical construction of the estimate equation;
graphic method
Total production costs (Z) consist of two parts:
constant (Z const) and
variable (Z var),
which is reflected by the equation Z = Z const + Z var
or in calculating the cost of one product:
Z = (C 0 + C 1)X,
where Z - total production costs;
X - production volume (number of units of products);
C 0 - fixed costs per unit of product (product);
C 1 - variable costs per unit of product (rate of variable costs per unit of product).
To construct an equation for total costs and divide them into constant and variable parts using the high and low point method, the following algorithm is used:
1. Among the data on production volume and costs for the period, the maximum and minimum values of volume and costs are selected, respectively.
2. Differences in levels of production volume and costs are found.
3. The rate of variable costs for one product is determined by attributing the difference in cost levels for the period (the difference between the maximum and minimum cost values) to the difference in production volume levels for the same period.
4. The total amount of variable costs for the maximum (minimum) volume of production is determined by multiplying the rate of variable costs by the corresponding volume of production.
5. The total amount of fixed costs is determined as the difference between all costs and the amount of variable costs.
6. An equation of total costs is drawn up, reflecting the dependence of changes in total costs on changes in production volume.
Let us show the calculation procedure using an example. In table Table 3 shows the initial data on production volume and costs for the analyzed period (by month).
From the table 4 shows that the maximum production volume for the period is 170 units, the minimum is 100 units. Accordingly, the maximum and minimum production costs were 98 rubles. and 70 rub.
The difference in production levels is
70 pcs. = (170 - 100),
and in cost levels -
28 rub. = (98 - 70).
The variable cost rate for one product will be
0,400 rub. = (28: 70).
The total variable costs for the minimum production volume will be
40 rub. = (100 * 0.4),
and for the maximum volume -
68 rub. = (170 * 0.4).
The total value of fixed costs is determined as the difference between all costs for the maximum (minimum) production volume and variable costs. For our example it will be
30 rub. = (70 - 40), or (98 - 68).
The cost equation for this example is
Z = 30 + 0.4X,
where Z - total costs;
X - production volume.
Table 4
INITIAL DATA ABOUT PRODUCTION VOLUME AND COSTS FOR THE ANALYZED PERIOD
| Moments of observation (report), month | Production volume (number of products), pcs. | Production costs, rub. |
| 1 | 100 | 70 |
| 2 | 120 | 85 |
| 3 | 110 | 80 |
| 4 | 130 | 90 |
| 5 | 124 | 87 |
| 6 | 121 | 82 |
| 7 | 136 | 93 |
| 8 | 118 | 78 |
| 9 | 124 | 90 |
| 10 | 120 | 84 |
| 11 | 170 | 98 |
| 12 | 138 | 93 |
| Total | 1,511 | 1,030 |
Graphically, the cost equation is displayed by a straight line passing through three characteristic points on the y-axis (production cost axis); the line passes through the point corresponding to the value of fixed costs. The fixed cost line is parallel to the x-axis (the axis of production volume). The cost line also passes through the intersection points of the maximum and minimum production volumes with the corresponding values of total production costs.
The degree of response of production costs to changes in production volume can be assessed using the so-called cost response coefficient. This coefficient is calculated by the formula:
,
where K - coefficient of response of costs to changes in production volume;
Z - changes in costs for the period, in%;
N - changes in production volume, in%
ABC- cost change line;
HELL- line of fixed costs;
A- point corresponding to the value of fixed costs;
IN- the lowest point of production volume (costs);
WITH- the highest point of production volume (costs)
Table 5
TYPICAL ECONOMIC SITUATIONS
For fixed costs, the cost response coefficient is zero ( K= 0). Depending on the value of the response coefficient, typical economic situations are distinguished, which are listed in table. 5.
Table 6
OPTIONS FOR COST BEHAVIOR DEPENDING ON CHANGES IN PRODUCTION VOLUME
| Volume of production | Options for changing costs per unit of production | |||
| products, units | K=0 | K=1 | K=0.8 | K=1.5 |
| 10 | 1 | 4 | 4.00 | 4.00 |
| 20 | 0.5 | 4 | 3.20 | 6.00 |
| 30 | 0.33 | 4 | 3.16 | 9.00 |
| 40 | 0.25 | 4 | 2.69 | 13.50 |
| 50 | 0.20 | 4 | 2.16 | 20.20 |
| 60 | 0.16 | 4 | 1.72 | 30.30 |
| 70 | 0.14 | 4 | 1.37 | 45.50 |
In table 6. Various options for cost behavior are presented depending on changes in production volume.
From the table 6 shows that the total costs for all options with a production volume of 10 units. coincide and equal 50 rubles. With an increase in production volume to 70 units. with a proportional increase in costs ( K = 1) general, costs will be
290 rub. = (0.14 * 70 + 4 * 70).
With progressively rising costs ( K = 1.5) total costs will be
3186 rub. = (0.14 * 70 + 45.5 * 70).
Digressive cost change ( K = 0.8) will give total expenses in the amount of 106 rubles. In Fig. Figure 3 shows a graphical representation of the behavior of costs depending on changes in production volume. Similarly, you can plot the behavior of costs per unit of production.
To ensure a reduction in costs and increase the profitability of the enterprise, it is necessary that the rate of reduction in digressive costs exceeds the rate of growth in progressive and proportional costs.
An important aspect of analyzing fixed costs is dividing them by useful And useless(single). This division is associated with an abrupt change in most production resources. For example, a company cannot purchase half a machine. In this regard, resource costs do not grow continuously, but spasmodically, in accordance with the size of a particular resource consumed. Thus, fixed costs can be represented as the sum of useful costs and useless ones not used in the production process:
Z const = Z useful + Z useless.
The amount of useful and useless costs can be calculated by having data on the maximum possible (N max) and actual volume of products produced (N eff)
It is easy to calculate the amount of useful expenses:
The analysis and evaluation of wasteful expenses is complemented by the study of all wasteful expenses.
The division of costs into fixed and variable, and fixed costs into useful and useless, is the first feature of direct costing. The value of such a division is to simplify accounting and increase the efficiency of obtaining profit data.
The second feature of the direct costing system is the combination of production and financial accounting. According to the direct costing system, accounting and reporting at enterprises are organized in such a way that it becomes possible to regularly monitor data according to the scheme
“costs -> volume -> profit”.
The basic report model for profit analysis is as follows:
Marginal income is the difference between sales revenue and variable costs. It represents, on the other hand, the sum of fixed expenses and net income. This circumstance allows you to build multi-stage reports, which is important for detailed analysis.
The multi-stage nature of income statement preparation is the third feature of the direct costing system. So, if in the above report the variable costs are divided into production and non-production, then the report will become three-stage. In this case, the production marginal income is first determined, then the income as a whole, then the net income. For example:
The fourth feature of the direct costing system is the development of methods for economic-mathematical and graphical presentation and analysis of reports for forecasting net income.
In a rectangular coordinate system, a graph of the dependence of cost (costs and income) on the number of units of output is plotted. Data on cost and income are displayed vertically, and the number of units of production is displayed horizontally (Fig. 4) At the point of critical production volume (K) there is no profit and no loss. To the right of it is the shaded area of net profits (income). For each value (number of units of production), net profit is determined as the difference between the amount of marginal income and fixed costs.
To the left of the critical point is the shaded area of net losses, which is formed as a result of the excess of the value of fixed expenses over the value of marginal income.
The analytical capabilities of the direct costing system are revealed most fully when studying the relationship between cost and product sales volume and profit. Let's write down the initial equation for analysis.
If the enterprise operates profitably, then the value of R> 0, if it is unprofitable, then R< 0. Если R = 0, то нет ни прибыли, ни убытка, а выручка от реализации равна затратам. Точка перехода из одного состояния в другое (при R= 0) называется критической точкой. Она примечательна тем, что позволяет получить оценки объема производства, цены изделия, выручки, уровня постоянных расходов и др. показателей, исходя из требований общего финансового состояния предприятия. For the critical point we have M = R * + KZ or 
. If revenue is represented as the product of the sales price of a unit of product (z ср) and the number of units sold (q), and costs are recalculated per unit of product, then at the critical point we get the expanded equation
N crit = pq = Z c + Z v q,
where p - unit selling price at the critical point;
q - production volume (number of units sold) at the critical point;
Z c = Z const - fixed costs for the entire volume of production;
- variable costs at the critical point per unit of product.
Legend:
N is the volume of production in value terms,
Z - total cost of production (production costs);
Z v - variable costs;
K is the point of critical production volume.
This equation is fundamental for obtaining the necessary estimates.
1. Calculation of critical production volume:
q (p - Z v) = Zc; ;
where d = p - Z v - marginal income per unit of product, rub.
Marginal income for the entire output is determined as the difference between revenue and the amount of variable costs.
2. Calculation of the critical volume of revenue (sales).
To determine the critical sales volume, the critical production volume equation is used. By multiplying the left and right sides of this equation by the price ( p ), we get the necessary formula:
; 
;
where the symbols correspond to those adopted earlier.
To calculate the critical sales volume, subject to a reduction in the price of the product and maintaining the same marginal income, the following ratio is used:
d 0 q 0 = d 1 q 1 ,
whence it follows that .
where the index “0” indicates the values of indicators in the previous period, and the index “1” indicates the value of the same indicators in the reporting period.
3. Calculation of the critical level of fixed costs
,
hence we have
,
Z const = qd.
This formula is convenient in that it allows you to determine the amount of fixed costs if d is given - the level of marginal income per unit of product in % of p - the price of the product, or if D is given - the level of marginal income in % of N - sales volume (revenue). Then the formula for calculations will be:
,
where d is given as a percentage of p, or
,
where D is given as a percentage of N.
4. Calculation of the critical selling price
The sales price is determined based on the specified sales volume and the level of fixed and variable costs per unit of product.
The initial revenue formula for the critical point is used for calculation:
or pq = Z c + Z v q,
N crit = pq = Z c + Z v q.
If d/p is known - the ratio between the amount of marginal income per unit of product and the price of the product, then where.
If D/N is known - the ratio between the amount of marginal income and revenue, then 
, where.
5. Calculation of the level of minimum marginal income
If Z c is known - the amount of fixed costs and N - the expected amount of revenue, then d/p - the level of minimum marginal income per unit of product in% of the price of the product will be determined from the formula:
and D/N has the same meaning - the level of minimum marginal income as a percentage of revenue:
6. Calculation of planned volume for a given amount of planned (expected) profit
If fixed costs, unit price, variable costs per unit of product, as well as the amount of the estimated (desired) profit are known, then sales volume will be determined by the following formula:
,
where q plan is the sales volume that ensures the target amount of profit;
R plan - the planned amount of profit.
This formula follows directly from the definition of marginal income as the sum of fixed costs and planned profit:
(p - Z v)q plan = Z c + R plan
7. Calculation of sales volume that gives the same profit for different production options(various technology options, prices, cost structures, etc.). The number of options doesn't matter.
The solution to the problem follows from the formula for determining profit:
R plan = (p - Z v)q plan - Z c .
Equating the profit received from the two options, we get:
(p 1 - Z v1)q - Z c1 = (p 2 - Z v2)q - Z c2,
where Z c1 and Z c2 are fixed costs for various options;
(p 1 - Z v1) = d 1 and (p 2 - Z v2) = d 2 - marginal income per unit of product (product) for various options.
Where do we get it from:
A graphical solution to this problem is also possible. In Fig. 8, the Roman numeral I indicates the line of dependence of profit on sales volume for the first production option, the Roman numeral II - for the second option, III - for the third option.
Rice. 8. Graph of the dependence of profit on sales volume, where the notations are adopted:
q - sales volume,
R - profit,
c - fixed costs,
I, II, III- production options,
q M is the sales volume that gives equal profit for all options.
At q = 0 options differ in the difference in fixed costs.
At R = 0, the options differ in the difference in critical volumes. At the point M intersection of lines, sales volume q M gives equal profit for all options.
For small sales volumes, the most preferable is option III, in which the critical point is at the origin of coordinates and the profit comes from the sale of the first unit of goods. Then preference can be given to production option 1, whose critical point is closer to the origin than option 2, which means profits will begin to arrive earlier.
After the lines intersect at a point M the situation is changing. Production option II becomes the most preferable, then option I, and option III becomes the least profitable.
These are the main principles of profit optimization and cost analysis in the direct costing system.
In the field of production and economic activities, items are reflected that are used to calculate net profit in the income statement. This includes receipts such as payments by buyers for goods and services rendered, interest and dividends paid by other companies, and proceeds from the sale of non-current assets. Cash outflow is caused by such transactions as wages, interest payments on loans, payments for products and services, tax expenses and others. These items are adjusted for receipts and expenses accrued but not paid or accrued but not requiring the use of funds. In addition, in order to avoid double counting, items affecting net profit, which are discussed in the sections of financial and investment activities, are excluded.
Thus, to calculate the increase or decrease in funds as a result of production and economic activities, it is necessary to carry out the following operations:
1. Calculate current assets and short-term liabilities based on the cash flow method. When adjusting items of current assets, their increase should be subtracted from the amount of net profit, and their decrease for the period should be added to net profit. This is due to the fact that when evaluating current assets using the cash flow method, we overestimate their amount, that is, we underestimate profit. In fact, an increase in working capital does not entail an increase in cash to the same extent as profit. When adjusting short-term liabilities, on the contrary, their growth should be added to net profit, since this increase does not mean an outflow of cash; the decrease in current liabilities is deducted from net income.
2. Adjustment of net income for expenses that do not require payment of cash. To do this, the corresponding expenses for the period must be added to the amount of net profit. An example of such expenses is depreciation of tangible non-current assets.
3. Eliminate the impact of profits and losses received from extraordinary activities, such as results from the sale of non-current assets and securities of other companies. The impact of these operations, which is also taken into account when calculating the amount of net profit in the income statement, is eliminated in order to avoid repeated counting: losses from these operations should be added to net profit, and profits should be subtracted from the amount of net profit.
Investing activities mainly include transactions related to changes in non-current assets:
· “Sale and purchase of real estate”,
· “Sale and purchase of securities of other companies”,
· “Providing long-term loans”,
· “Receipt of funds from loan repayments.”
The financial sector includes transactions such as changes in the company's long-term liabilities and equity, the sale and purchase of its own shares, the issue of company bonds, the payment of dividends, and the company's repayment of its long-term obligations. Each section separately provides data on the receipt of funds and their expenditure for each item, on the basis of which the total change in funds at the end of the period is determined as the algebraic sum of funds at the beginning of the period and changes during the period.
Let's look at the algorithm for working with a cash flow statement.
In the production and economic activities section, the amount of net profit is adjusted to the following items:
1. added to net profit: depreciation, decrease in accounts receivable, increase in deferred expenses, losses from the sale of intangible assets, increase in tax debt;
2. deducted: profit from the sale of securities, an increase in advance payments, an increase in minimum wage (inventories), a decrease in accounts payable, a decrease in liabilities, a decrease in bank credit.
In the investment activities section:
1. added: sale of securities and tangible non-current assets;
2. deducted: purchase of securities and tangible non-current assets.
In the field of financial activities:
1. the issue of ordinary shares is added;
2. deducted: redemption of bonds and payment of dividends.
At the end of the analysis, cash is calculated at the beginning and end of the year, which allows us to talk about changes in the financial position of the company.
Factors that change profit are costs included in the cost of production, changes in the volume of sales on credit, the accrual of taxes and dividends, etc.
Reported profit is also adjusted for the amount of adjustments that do not reflect cash flows:
Is, as noted above, a method of accounting for income.
An important component of the financial condition is the movement of working capital or current assets of the enterprise. With the turnover of mobile assets, the entire process of circulation of capital begins, and the entire chain of economic activity of the enterprise is set in motion. Therefore, the factors of accelerating working capital, synchronizing the movement of working capital with profit and cash should be given maximum attention.
6. Conclusion
In conclusion of my course work, I can conclude that the main task of an enterprise in a market economy is to fully satisfy the needs of the national economy and citizens for its products, works and services with high consumer properties and quality at minimal costs, increasing the contribution to the acceleration of social economic development of the country. To achieve its main task, the enterprise ensures an increase in the financial results of its activities.
As discussed in this work, in a market economy, the importance of profit is enormous. The desire to make a profit directs commodity producers to increase the volume of production of products needed by the consumer and reduce production costs. With developed competition, this achieves not only the goal of entrepreneurship, but also the satisfaction of social needs. For an entrepreneur, profit is a signal indicating where the greatest increase in value can be achieved, creating an incentive to invest in these areas. Losses also play a role. They highlight mistakes and miscalculations in the direction of funds, organization of production and sales of products.
To improve the efficiency of an enterprise, it is of paramount importance to identify reserves for increasing production and sales volumes, reducing the cost of products (works, services), and increasing profits. The factors necessary to determine the main directions for searching for reserves for increasing profits include natural conditions, government regulation of prices, tariffs, etc. (external factors); change in the volume of means and objects of labor, financial resources (internal production extensive factors); increasing the productivity of equipment and its quality, accelerating the turnover of working capital, etc. (intensive); supply and sales activities, environmental protection activities, etc. (non-production factors).
The work examines the following areas: composition and structure of balance sheet profit; profit from sales of products (works, services) and other sales; profits (losses) from non-operating operations and the impact of these factors on the financial results and areas of use of the enterprise’s profits.
List of sources used
1. K.A. Rantsky “Economics of Organizations” M.: Dashkov and Co., 2003
2. I.V. Sergeev “Enterprise Economics”, M.: Finance and Statistics, 2001
3. Finance of organizations (enterprises): textbook - M.: TK Welby, Prospekt Publishing House, 2005
4. Kovalev A.I., Privalov V.P. “Analysis of the financial condition of an enterprise” M.: Center for Economics of Marketing, 2001
5. Methodology of financial activities of commercial organizations 2-T BPL. Author(s) Sheremet A.D., Negashev E.V. Publishing house. Infra-M
6. Magazine “Financial Management” No. 1, 2005
7. Financial Director No. 1, 2000
8. Eliseeva I.I., Rukavishnikov V.O. Grouping, correlation, pattern recognition. - M.: Finance and Statistics, 1977
9. Journal of Audit and Financial Analysis No. 1, 2000
10. Grishchenko O.V. Analysis and diagnostics of financial and economic activities of an enterprise: Textbook. Taganrog: TRTU Publishing House, 2000
11. Enterprise Economics/Fundamentals of Enterprise Economics (Tutorial) - T.V. Yarkina
12. Magazine “Finance and Credit”, No. 10, 2007
13. Internet resources
Finance of organizations (enterprises): textbook - M.: TK Welby, Prospekt Publishing House, 2005
Kovalev A.I., Privalov V.P. “Analysis of the financial condition of an enterprise” M.: Center for Economics and Marketing, 2001
Methodology of financial activities of commercial organizations 2-T BPL. Author(s) Sheremet A.D., Negashev E.V. Publishing house. Infra-M.
Magazine "Financial Management", No. 1, 2005
Eliseeva I.I., Rukavishnikov V.O. Grouping, correlation, pattern recognition. - M.: Finance and Statistics, 1977.
Financial Director. - 2003. - No. 1.
Journal of Audit and Financial Analysis No. 1, 2000
As a result of the economic activities of the enterprise, profit is created (accumulation).
Representing a net increase in the total amount of funds as a whole, accumulation can only be identified in monetary valuation as a generalizing measure of economic activity. Therefore, accumulation is usually called financial results of business activities, those. result expressed in monetary terms.
Profit can only be revealed by accounting. The latter, firstly, calculates the amount of the resulting accumulation as the financial result of the enterprise, secondly, it takes into account the calculated accumulation as one of the sources of funds and, thirdly, reflects the distribution of profits at the end of the year.
Hence, object of accounting is profit as the financial result of the economic activity of an enterprise.
General characteristics of the subject of accounting
Consideration of the elements of the economic activity of an enterprise showed that each of them is reflected in accounting and is thereby the object of the latter. These objects also include the circulation of funds caused by economic processes and accumulation as a result of the economic activity of the enterprise. Thus, specific accounting objects are:
2) labor costs and wages;
3) settlement and credit relations;
4) business operations and processes and the circulation of funds caused by them;
5) profit (accumulation) as a result of the economic activity of the enterprise.
Some of these objects, having independent significance in detailed indicators, find their generalized expression in the aggregated accounting indicators as part of other objects.
Thus, labor costs receive a generalized expression as part of funds (work in progress), and wages - in the form of wages owed to workers and employees - as part of sources. Settlement and credit relations are expressed in the form of accounts receivable as part of funds, and in the form of accounts payable as part of sources. Savings, being one of the sources of funds, are also included in the sources. The circulation of funds caused by economic processes is expressed in the implementation of these processes. In the same way, operations, being elements of processes, find their generalized expression in the latter.
From here we come to the conclusion that all accounting objects can be summarized in two main objects:
1) economic means and their sources;
2) economic processes.
It is understood that funds and sources as objects of accounting also reflect in their generalized indicators labor and its payment, settlement and credit relations and savings, and economic processes - operations and circulation of funds.
General concept of accounting method
From the previously described characteristics of the elements of economic activity as objects of accounting, the following characteristic features of the subject of this accounting follow.
First, the economic content the entire set of funds enterprises are identified in economic activities in two ways: a) in their placement and use; b) in their sources and purpose. Therefore, accounting requires a generalized reflection of the state of funds in two groups, i.e. separately funds and separately sources.
Secondly, according to their composition, funds and sources are divided into groups, each of which has its own special economic content and purpose.
Thirdly, changes in means and sources caused by operations are double and interconnected. Therefore, in accounting, these changes require double interrelated reflection.
Fourthly, economic activity is a continuous chain of operations, constantly causing changes in means and sources, therefore “accounting is required to continuously cover all transactions.
The specified features of the subject of accounting also determine the ways in which this accounting reflects economic activity.
1. A generalized reflection of the state of funds in two groups - funds and sources - is given periodically with the help of balance.
2. The division of funds and sources into groups and current accounting of each group is carried out using accounts
3. Reflection of double interrelated changes in funds and sources caused by operations is carried out using double entry.
4. Continuous, comprehensive coverage of all operations is carried out. with help documentation.
Thus, the main ways of reflecting the economic activities of enterprises included in the accounting method I'm in include: balance sheet, accounts, double entry, documentation.
In practice, accounting is carried out in the following order: first, transactions are recorded in documents, then, based on the documents, double interrelated entries are made in the accounts, and, finally, a balance sheet is drawn up based on the accounts.
The concept of balance
Characteristics b Alansa
Firstly, it consists of two parts: one of them is called ". asset (active, active - lat. and the other - passive (passive, inactive - lat.). The assets show funds, and the liabilities show sources
Thus, the enterprise’s funds in accordance with their economic content is obtained in the balance sheet double reflection: by placement and use - in the asset, by source and purpose - in the liability.
Active Passive
Secondly, both funds and sources are shown in the banlance in grouped form, (Fixed assets. Materials, Authorized capital etc.).
Thirdly, the funds receive their quantitative expression in the balance sheet in monetary meter. This provides the possibility of a generalized reflection of funds.
Fourthly, funds are shown on the balance sheet according to their state at a certain moment. In our example - on January 1, 200.
Equality of the totals of assets and liabilities is one of the main features of the balance sheet(from Latin - two-cup scales) and serves as an indispensable condition for its correct compilation.
Hence, the balance sheet as one of the main elements of the accounting method can be briefly characterized as follows: the balance sheet is a method of generalized reflection at a certain moment in the monetary valuation of the economic assets of an enterprise in their double grouping: by location And use; by sources and destination.
Balance form.
The balance is depicted in the form of a special table, divided into two parts vertically. The asset is placed on the left, and the liability on the right (Distribute Balance Table 15)
The words balance are placed in the header of the balance sheet (indicating the name of the enterprise and date). The word asset heads the left side of the table, in which funds are placed, and the word liability - in the right, in which sources are placed; no other words are written.
Each group of funds or sources is shown in the balance sheet under a special name and is expressed as a separate amount, it is called a balance sheet item. Eg. materials, authorized capital.
If it is necessary to show private amounts for separate groups of items in the balance sheet, then the balance sheet can have two columns in assets and liabilities for the private and total amounts.