Making a profit is a prerequisiteand the purpose of all business activities of each economic structure. With the help of profit (profitability), all the efficiency of management is assessed. It is the main source of financing for social and economic development.
At present, profit has acquired an important,leading role in the new financial and economic mechanism for managing economic and social development. It is nothing but the basis of financial stability, as well as the full provision of income of the state, the population and the enterprise. In addition, there are various types of profit, it performs its functions and plays its own special role in the activities of any enterprise.
Before, to understand what are the essence and typesprofit enterprises, it is necessary to understand that it has an important property - to reflect the final result of extensive and intensive development. In addition, profit is the criterion of the effectiveness of reproduction, it is an indicator with two boundaries: the cost price and the volume of production of services or products (sales).
According to its economic content, profitexpresses, in money terms, a part of the value of the surplus product. It performs a number of functions. These include stimulating, reproductive and control functions.
In order to determine the financial results,you must use the accrual method. That is why the profit or loss that is shown in the financial statements does not simply reflect the real inflow of money of any enterprise as a consequence of its economic activities. So, in order to restore the real picture of the magnitude of financial results, which are an increase or decrease in the value of its capital, additional financial calculations are needed.
Financial results of the specificenterprises on the account of losses and profits are always reflected in two forms: 1. As a result of the implementation of works, products, materials, services and other property, while it can be previously identified on the sales accounts. 2. As a result, which is not related to the implementation process. It is called non-operating incomes and losses.
There are different types of profits. All of them differ from each other and those who want to do business are obliged to understand them. Currently, these types of profit are allocated:
1. Balance sheet profit or loss is the amount of profit or loss received from the sale of financial activities, products, revenues from other non-sale transactions, and they are reduced by the amount of all expenses for these operations.
2. Profit from ordinary activities or from the sale of work, services, products. It is the difference between all the proceeds from the sale of products at current prices without a special tax, excises, VAT and the costs of producing and selling it.
3. The profit or loss from financing activities and other non-operating transactions is the result of transactions that are reflected in account 47 under the heading "Sales and Other Disposal of Fixed Assets" and account 48 under the heading "Sale of Other Assets", and the difference between the amount of all received and penalties, penalties, interest, exchange rate differences on all foreign currency accounts, past losses and profits that were identified in the reporting year, and so on.
4. Taxable profit is the difference between the balance sheet profit and the amount of rent payments, income taxes, import and export taxes.
5. The types of profits continue to net profit, which is directed to social, industrial development, the creation of reserve funds, the financial encouragement of all employees, to pay various economic sanctions to the budget, to charity, and so on.
6. And, finally, the consolidated profit, consolidated across the accounting reporting on the activities and, in addition, the financial results of the subsidiaries and parent enterprises.</ p>