MINISTRY OF EDUCATION OF THE RUSSIAN FEDERATION

KAZAN STATE FINANCIAL AND ECONOMIC INSTITUTE

DEPARTMENT OF FINANCIAL ACCOUNTING

COURSE WORK

GROUP: No. 314

RESEARCH SUPERVISOR: Yashurkina G.G.

KAZAN – 2003

Introduction…………………………………………………………………………………..3

1. Concept and structure of financial results…………………………….…5

1.1. The concept and composition of an organization’s income and expenses in accounting…………………………………………………………......5

1.2. The concept and composition of an organization’s income and expenses in tax accounting...14

1.3. Comparative characteristics of accounting and tax accounting of income and expenses…………………………………………………..20

2. Features of accounting for profits and losses of an organization……………………….26

2.1. Reflection of financial results in accounting…………...20

2.2. Features of the formation of the final financial result for the purpose of

taxation………………………………………………………..37

Conclusion…………………………………………………………………………………40

References……………………………………………………………...41

Introduction

In a market economy, the basis of economic development is profit, the most important indicator of the efficiency of an enterprise, the sources of its life. Profit growth creates the financial basis for the expanded reproduction of the enterprise and the satisfaction of the social and material needs of the founders and employees. At the expense of profits, the enterprise's obligations to the budget, banks and other organizations are fulfilled. Therefore, the reliability of the calculation of the financial result (accounting profit) becomes the most important task of accounting.

The final financial result of an enterprise is, as a rule, profit. However, in the process of working on some business operations, the company may experience losses, which reduce the profit received and reduce profitability. The final financial result (profit or loss) consists of financial results from sales and income from operating and non-operating results, reduced by the amount of expenses for these operations.

In the emerging market relations, the orientation of enterprises towards making a profit is an indispensable condition for their successful entrepreneurial activity, a criterion for choosing the optimal directions and methods of this activity. In modern Russia, with the formation and development of commercial enterprises, the problem of accounting accuracy becomes the most pressing. Accounting for the financial results of an enterprise is necessary at any stage of production.

In this course work we will consider the structure of financial results from the point of view of accounting and tax accounting, as well as the methodology for accounting for the main operations of generating revenue: from the sale of products, goods, works and services; from other activities (operating and non-operating income and expenses), in addition, we will reveal the methodology for generating the final financial result.

1. Concept and structure of financial results

1.1. The concept and composition of an organization’s income and expenses in accounting

In a market economy, the basis for the economic development of an organization is profit, the most important indicator of the organization’s performance, the source of its life. Profit growth creates a financial basis for the expanded reproduction of the organization and the satisfaction of the social and material needs of the founders and employees.

At the expense of profits, the organization’s obligations to the budget, banks, and other organizations are fulfilled.

Financial result is the result of the economic activity of an enterprise for the reporting period.

The financial result can be expressed in the form of profit (the excess of income over expenses) or in the form of a loss (the excess of expenses over income).

The model for generating the results of the organization’s activities is presented in Figure 1.1.

Model for the formation of organizational profit indicators

Income from ordinary activities

Expenses for ordinary activities

Balance of non-operating income and expenses

Balance sheet of operating income and expenses

Balance of extraordinary income and expenses

Income tax

Payments for recalculation of income tax

Sanctions for violation of tax laws

Net profit (loss) for the reporting period

According to clause 2 of PBU 9/99, the income of an organization is recognized as an increase in economic benefits as a result of the receipt of assets (cash, other property) and (or) repayment of liabilities, leading to an increase in the capital of this organization, with the exception of contributions from participants (owners of property).

In accordance with clause 4 of PBU 9/99, the income of an organization, depending on the nature, conditions of receipt and areas of activity of the organization, is divided into:

Income from ordinary activities;

Other income: operating, non-operating and extraordinary income.

In this case, income other than income from ordinary activities is considered other income. Other income also includes extraordinary income.

The scope of entrepreneurial activity is the sale of goods, products, performance of work, provision of services, and income from these activities of the organization is recognized as revenue from the sale of products and goods, receipts associated with the performance of work, provision of services, i.e. income from ordinary activities .

In particular, this is the proceeds from the sale of:

Finished products and semi-finished products of own production;

Industrial works and services;

Non-industrial works and services;

Purchased products (purchased for completion);

Construction, installation, design and survey,

geological exploration, research and similar works;

Goods;

Services for the transportation of goods and passengers;

Transport, forwarding and loading and unloading operations;

Communication services.

For certain types of transactions, organizations can determine independently whether the receipts from them are income from ordinary activities or whether they belong to other income. These types of operations include:

Providing for a fee the temporary use of its assets under a lease agreement (when this is the subject of the organization’s activities);

Providing for a fee rights arising from patents for inventions, industrial designs and other types of intellectual property (when this is the subject of the organization’s activities);

Participation in the authorized capital of other organizations (when this is the subject of the organization’s activities), etc.

The moment of their recognition is important in accounting for income. Thus, to recognize revenue from a sale, the following conditions must be met:

a) the organization has the right to receive this revenue arising from a specific agreement or confirmed in another appropriate manner;

b) the amount of revenue can be determined;

c) there is confidence that as a result of a particular transaction there will be an increase in the economic benefits of the organization. Confidence that as a result of a particular transaction there will be an increase in the economic benefits of the organization exists when the organization received an asset in payment or there is no uncertainty regarding the receipt of the asset;

d) the right of ownership (possession, use and disposal) of the product (goods) has passed from the organization to the buyer or the work has been accepted by the customer (service provided);

e) the expenses that have been incurred or will be incurred in connection with this operation can be determined.

If at least one of the above conditions is not met in relation to cash and other assets received by the organization in payment, then accounts payable, and not revenue, are recognized in the organization's accounting records.

To recognize in accounting revenue from the provision for a fee for temporary use of one's assets, rights arising from patents for inventions, and other types of intellectual property and from participation in the authorized capital of other organizations, the three conditions specified in clause “ a", "b" and "c". In this case, for accounting purposes, interest is accrued for each expired reporting period in accordance with the terms of the agreement;

Revenue from performing specific work, providing a specific service, or selling a specific product is recognized in accounting as it is ready, if it is possible to determine the readiness of the work, service, or product.

Fines, penalties, penalties for violation of contract terms, as well as compensation for losses caused to the organization are recognized in the reporting period in which the court made a decision to collect them or they were recognized as a debtor;

Amounts of accounts payable and depositors for which the statute of limitations has expired are recognized in the reporting period in which the statute of limitations expired;

Amounts of revaluation of assets are recognized in the reporting period to which the date as of which the revaluation occurred;

Other receipts are recognized as they are generated (identified).

Operating income is revenue. Related to the use of the organization’s assets as such (disposal due to write-off in case of moral and physical wear and tear, gratuitous transfer, sale, etc.) According to clause 7 of PBU 9/99 operating income are:

Receipts associated with the provision for a fee for temporary use (temporary possession and use) of the organization’s assets;

The organization receives the bulk of its profit (loss) from the sale of finished products, goods, works and services.

The main indicator of the financial and economic activity of an organization is the final financial result (net profit or net loss), which is defined as the difference between the accrued income of the enterprise received from all types of activities, including non-operating income for a certain period: revenue from the sale of products (work, services) excluding value added tax, excise taxes, export duties, sales tax and other deductions provided for by law, and costs written off for the same period and attributed to accrued income.

To account for the final financial result of the enterprise, active-passive account 99 “Profits and losses” is used.

The financial result can be either positive (profit) or negative (loss). The financial result increases or decreases the organization's capital.

During the year, losses and losses are written off on an accrual basis to the debit of account 99 “Profits and Losses”, and to the credit – the profits (income) of the organization.

Account 99 “Profits and losses” is changed at the end of each month with the final turnover of the month. If the balance in the income account is negative, that is, a profit was made during the month, the account is credited; if the month was unprofitable, it is debited in correspondence with the corresponding income account. By comparing debit and credit turnover, the final financial result for the reporting period is determined.

Account 99 during the reporting year reflects:

• - profit or loss from ordinary activities (D or K 90 “Sales”);
• - balance of other income and expenses for the reporting month (D or K 91 “Other income and expenses”);
• - losses, expenses and income due to emergency circumstances of economic activity (natural disaster, fire, accident, nationalization, etc.) - in correspondence with accounts of material assets, settlements with personnel for wages, cash, etc. .;
• - accrued payments of income tax and payments for recalculation of this tax from actual profits, as well as the amount of tax penalties due (K 68).

At the end of the year, account 99 “Profits and losses” is closed with a final entry in correspondence with account 84 “Retained earnings (uncovered loss)”. This posting is called balance reformation.

Some typical entries for the debit of account 99 “Profits and losses”.

economic means profit loss

Some typical entries for the credit of account 99 “Profits and losses”.

As a result, account 99 reveals the organization’s net profit - the basis for declaring dividends and other distribution of profits. At the end of the reporting year, when preparing annual financial statements, account 99 is closed. In this case, by the final entry of December, the amount of net profit (loss) of the reporting year is written off from account 99 “Profits and losses” to the credit (debit) of account 84 “Retained earnings (uncovered loss)”.

Analytical accounting for account 99 is carried out for each item of profit and loss.

Accounting for the use of profits during the reporting year is kept on account 91 “Other income and expenses”, subaccount 2 “Other expenses” and on 99 “Profits and losses”. The formation of the financial result is reflected in the report in Form 2 “Profit and Loss Statement”.

During the year, the financial result from ordinary activities, as well as from other income and expenses, is written off to account 99 “Profits and losses”. It also reflects the income tax debt to the budget and fines for tax violations.

In relation to the balance, the account is active - passive. This account is intended to summarize information on the formation of the final financial result of activities in the reporting year.

The final financial result (net profit or net loss) is made up of the financial result from ordinary activities, as well as other income and expenses.

The Debit of account 99 “Profits and Losses” reflects losses (losses, expenses), and the Credit reflects the profits (income) of the organization. A comparison of debit and credit turnover for the reporting period shows the final financial result of the reporting period.

Account 99 “Profits and losses” during the reporting year reflects:

• 1) profit or loss from ordinary activities - in correspondence with account 90 “Sales”;
• 2) the balance of other income and expenses for the reporting month - in correspondence with account 91 “Other income and expenses”.

That is, to account 99 “Profits and losses” the balances of subaccounts 90-1, 90-2, 90-3 and 91-1, 91-2 are written off during the year (monthly) without actually closing these subaccounts; the balance is revealed in subaccounts 90-9 and 91-9. All subaccounts for accounts 90 and 91 are closed only at the end of the year.

Since account 99 “Profits and losses” is intended to determine the final financial result, the tax base for income tax will be determined from this account, taking into account the adjustments established by current legislation. It follows from this that the legality of attributing the corresponding expenses to account 99 “Profits and losses” must be justified by the necessary documents. At the end of the year, on December 31, account 99 “Profits and losses” is closed. This final operation of the reporting year is called balance sheet reformation.

Before reforming the balance sheet, it is necessary to close all sub-accounts opened for account 90 “Sales” and account 91 “Other income and expenses”:

Table 2.2 - Procedure for closing sub-accounts of financial results

	Reflection in accounting
Subaccount 90-1 was closed at the end of the year
Subaccounts 90-2, 90-3 were closed at the end of the year
Subaccount 91-1 was closed at the end of the year
Subaccount 91-2 was closed at the end of the year
Profit from the activities of the enterprise is reflected
The company made a profit and wrote off the net (retained) profit of the reporting year
Reflected loss from the organization's activities
At the end of the reporting year, the company incurred a loss and wrote off the net (uncovered) loss

To find out how the organization worked in the reporting year, the accountant must compare the annual debit and credit turnover on account 99. If the company made a profit (as of December 31, account 99 had a credit balance), the following entry is made in accounting:

Dt sch. 99 Set count. 84 reflects the net (retained) profit of the reporting year.

If the company suffered a loss:

Dt sch. 84 Set count. 99 reflects the loss of the reporting year.

It was considered when the accounting profit was equal to the tax profit (in this case, the income tax entry is made in the amount reflected in the tax return). However, in practice it often happens that accounting and taxable profits do not coincide. Then, in accordance with the requirements of PBU 18/02, in the debit of account 99, the organization must reflect the so-called “conditional income tax expense” (its amount is determined as the product of accounting profit and the tax rate). In this case, the accountant makes the following entry:

Dt sch. 99 subaccount “Conditional income tax expense” Account number. 68 subaccount “Calculations for income tax” - a conditional income tax expense has been accrued.

Then, according to the requirements of PBU 18/02, the amount of the conditional expense in account 99 is adjusted by the amount of deferred and permanent tax assets and liabilities. Moreover, permanent tax assets and liabilities are taken into account in separate subaccounts of account 99. Consequently, when reforming the balance sheet, these subaccounts must also be closed.

Dt sch. 90-9 Set count. 99-9 reflects profit from sales (revenue-VAT-cost of sales).

Tax on this profit (notional expense) = sales profit * 24%. It is reflected:

Dt sch. 99 subaccount “Conditional income tax expense” Account number. 68 subaccount “Calculations for income tax”

But since the amount of expenses in accounting exceeded the amount of expenses accepted for tax purposes, a permanent tax liability must be reflected in accounting. The accountant writes:

Dt sch. 99 subaccount “Permanent tax obligations” Account. 68 subaccount “Calculations for income tax” - reflects the permanent tax liability.

Thus, the credit of the Income Tax Calculations subaccount of account 68 will reflect the amount of tax accrued to the budget according to the reporting year declaration.

Dt sch. 90-1 Set count. 90-9 - the “Revenue” subaccount is closed

Dt sch. 90-9 Set count. 90-2 - “VAT” subaccount is closed

Dt sch. 90-9 Set count. 90-3 - subaccount “Cost of sales” is closed

Dt sch. 99 -9 Set count. 99 subaccount “Conditional income tax expense” - the subaccount “Conditional income tax expense” is closed

D- t sch. 99-9 Set count. 99 subaccount “Permanent tax obligations”

Sub-account “Permanent tax obligations” is closed

Dt sch. 99-9 Set count. 84 - net (retained) profit is reflected.

To summarize information about the presence and movement of amounts of retained earnings or uncovered losses of an organization, account 84 “Retained earnings (uncovered loss)” (active - passive) is intended. The amount of net profit of the reporting year is written off with final turnover to the Credit of account 84 “Retained earnings (uncovered loss)” in correspondence with account 99 “Profits and losses”. The amount of the net loss of the reporting year is written off with the final turnover of December to Debit 84 “Retained earnings (uncovered loss)” in correspondence with account 99 “Profits and losses”.

Accounting for income from sales is kept on active-passive account 90 “Sales” and serves to determine financial results from business operations, using the following entries:

1) reflection of the amount of revenue:

Debit of account 62 “Settlements with buyers and customers,

Account credit 90 “revenue”;

Debit account 90 “Revenue”,

Credit to account 68 “calculations for taxes and fees”.

Profit in a market economy plays a big role in stimulating the development of production. In the process of economic activity, enterprises may, along with profits, also have unexpected losses. Both profits and losses must be reflected in the accounting for each item and the financial results as a whole.

To summarize information about the formation of the final result of the enterprise’s activities in the reporting year, the active-passive synthetic account 99 “Profits and losses” is intended.

The credit of this account reflects the profits of the enterprise, and the debit - losses. In particular, during the reporting period this account records:

1) profit or loss from the sale of finished products;

2) gross income from the sale of goods and packaging in supply, marketing and trading enterprises;

3) profit or loss from the sale, income or losses from other disposal of fixed assets;

4) losses of previous years identified in the reporting year;

5) costs for canceled production orders, as well as costs for production that did not produce products, minus the cost of the material assets used;

6) interest on a bank loan on overdue short-term loans, operations from discounting bills and other debt obligations, as well as medium-term and long-term loans, etc.

During the reporting year, the indicated income and losses on account 99 are accumulated on an accrual basis from the beginning of the year.

Enterprises may have profit or loss from the sale and other disposal (liquidation, write-off, transfer for free, etc.) of fixed assets belonging to them. The specified financial results are determined on account 90 “Sales”.

Financial results from the sale of inventories, intangible assets, currency values, and securities owned by the enterprise can be reflected in the debit of account 76 “Settlements with various debtors and creditors” in correspondence with account 91 “Other income and expenses” subaccount 1 “Other income” .

• 
  Accounting profits And losses. Accounting income from sales is maintained on active-passive account 90 “Sales” and serves to determine financial results from business operations, using the following entries


• 
  Accounting profits And losses. Accounting income from the sale is maintained in active-passive account 90 “Sales” and serves to determine.


• 
  Unlike the plan profits And losses The cash flow plan reflects the actual receipt of revenue from the sale of products and services from taking into account planned types of payment (in fact, in advance, on credit...


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  To summarize information about the formation of the final financial. res. activity-count 99 " Arrived And losses».
  Accounting records for accounting tax on profit D99K68/4 (tax charged on profit). Accounting extraordinary income and expenses.


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  Profit (lesion) before tax is profit from sales from taking into account


• 
  Profit (lesion) before tax is profit from sales from taking into account other income and expenses, which are divided into operating and non-operating: Pdn = Ppr + Sodr + Sdr, where Sodr is operating income and expenses; Svdr...


• 
  Profit (lesion) before tax is profit from sales from taking into account other income and expenses, which are divided into operating and non-operating: Pdn = Ppr + Sodr + Sdr, where Sodr is operating income and expenses; Svdr...


• 
  Distribution arrived And losses cooperative. Profit accounting


• 
  Profit (lesion) before tax is profit from sales from taking into account other income and expenses, which are divided into operating and non-operating: Pdn = Ppr + Sodr + Sdr, where Sodr is operating income and expenses; Svdr...


• 
  Distribution arrived And losses cooperative. Profit- this is the final financial result identified for the reporting period on the basis of accounting accounting all business transactions of the cooperative and assessment of balance sheet items.

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The financial result of an organization's economic activity is determined by the profit or loss indicator formed during the calendar (business) year. The formation of the results of the annual financial result is carried out cumulatively throughout the year on account 99 “Profits and losses” in the form of its “collapsed” balance, reflecting profit - on the credit of the account or loss - on the debit of the account. The financial result is the difference from comparing the amounts of income and expenses of the organization. An excess of income over expenses means an increase in the organization's property - profit, and expenses over income - a decrease in property - a loss. The financial result obtained by the organization for the reporting year in the form of profit or loss, respectively, leads to an increase or decrease in the organization’s capital

The financial result of an organization’s economic activity is formed from two components, the main one of which is the sales result obtained from the sale of products, goods, works and services, as well as from business operations that constitute the subject of the enterprise’s activities, such as the rental of fixed assets for a fee, transfer of intellectual property objects for paid use and investment of funds in the authorized capital of other organizations.

The second part, in the form of income and expenses not directly related to the formation of the main operating financial result, forms other financial result, which includes operating and non-operating income and expenses. If during the reporting period an enterprise made a profit from the sale of products, goods, works, services and other operations that constitute the subject of its activities, then its entire financial result will be equal to the profit from sales plus other income, minus other expenses. If a company receives a loss on sales, then its total financial result will be equal to the amount of the loss on sales plus other expenses, minus other income.

The overall financial result obtained in this way is adjusted for the amounts of losses, expenses and income due to extraordinary circumstances of the enterprise’s economic activity.

The realized financial result from sales is revealed in accounting on the basis of account 90 “Sales” and is determined as the difference between the amount of revenue (excluding indirect taxes and payments - VAT, excise taxes, etc.) reflected on the credit of account 90 , and the amount of the actual cost of products, works and services sold, reflected in the debit of the same account. In this case, income and expenses from operations that constitute the subject of the organization’s activities are also taken into account.

The realized financial result from sales is determined at the end of each reporting period. If the company received a profit as a financial result, then it is reflected in the credit of account 99 “Profits and losses” in correspondence with the debit of account 90 “Sales”. If the result of the organization’s activities is a loss, then it is reflected in the debit of account 99 “Profits and Losses” in correspondence with the credit of account 90 “Sales”.

Other operating and non-operating income and expenses in accounting are reflected in account 91 “Other income and expenses”. The balanced result of this account in the form of profit and loss is written off monthly, like the balance of account 90 “Sales”, to the final savings account of financial results 99 “Profits and losses”: the balance in the form of profit is to the credit of account 99 from the debit of account 91, and the balance in the form of losses - to the debit of account 99 from the credit of account 91.

Extraordinary income and expenses are reflected directly on account 99 "Profits and losses", income - on credit, expenses - on debit in correspondence with the corresponding accounts for accounting for cash, inventory, settlements, etc. .

Extraordinary income includes amounts of insurance compensation from other sources to cover losses from natural disasters, fires, nationalization of property and other emergency events. Extraordinary expenses include losses from natural disasters, losses resulting from fires, accidents, nationalization of property and other emergency events.

Account 99 “Profits and losses” also reflects payments of corporate income tax. During the year, the amounts of advance payments of income tax are reflected in the credit of account 51 “Current accounts” and the debit of account 68 “Calculations for taxes and fees”. The amounts actually due from the payment organization (according to calculations) are recorded on the credit of account 68 “Calculations for taxes and fees” in correspondence with account 99 “Profits and losses”. By comparing debit and credit turnover in account 68 “Calculations for taxes and fees” (sub-account “Income Tax”), the amount of debt in payments to the budget or overpayments is revealed. Repayment of debt is reflected by an entry in the debit of account 68 “Calculations for taxes and fees” and the credit of account 51 “Current accounts”. When the overpayment amount is offset against the accrued payments of the next period, no additional entries are made. If the amount of the overpayment is returned to the organization from the budget, then an entry is made in the debit of account 51 “Current accounts” in correspondence with account 68 “Calculations for taxes and fees.”

The amounts of sanctions for violation of tax laws in terms of income tax calculations are reflected in a similar manner.

At the end of the reporting year, account 99 “Profits and losses” reveals the organization’s net profit, which is the basis for declaring dividends and other distribution of profits. This value is transferred to account 84 “Retained earnings (uncovered loss)” in the final entries of December. Thus, account 99 “Profits and losses” has no balance at the end of the year.

Analytical accounting for account 99 “Profits and losses” at manufacturing enterprises must be organized in such a way as to ensure the generation of data necessary for drawing up a profit and loss statement.