The financial result of an enterprise can be presented in a balance sheet loss or a profit. It is expressed in the form of an algebraic sum of the results of the sale of goods, services or works, expense and income unrealized operations and so on. Financial results of activity characterise also the gross income from the sale of products.

Income from sales of products is characterized by the end of the production cycle, repayment of advances in cash and the beginning of a new stage of asset turnover. After deducting from the proceeds of VAT and the costs of production of sold goods obtained net financial result – a loss or profit.

Key indicators

A particular financial result characterizes the absolute efficiency of the economic system of the company. In addition to these indicators are calculated and the relative parameters – the level of profitability. The ratio balance of income and average cost of working capital and fixed assets attributed to the overall profitability of production. Profitability is calculated as ratio of profit from sales to revenue. Also is calculated and other indicators of profitability by changing the numerator and denominator in the General formula for calculating ROI in the form of ratio of income to costs (or resources) or to various indicators of product.

It is the Foundation of economic development in market conditions. The profit figure is important for the analysis of financial and operating activities of the organization as independent producers. Income is one of the most important characteristics of efficiency of functioning of the company and the source of his work. The increase in net profit forms the basis for self-financing of the production process, the implementation of the expanded output to meet growing material and social needs of workers. Profit allows you to perform obligations incumbent on the company to the budget, banking institutions and other counterparties.

During this procedure carried out a study on the factors of education and income distribution. The main task of the financial audit are:

  • Assessment of indicators of formation of profit dynamics.
  • The validity of the actual size of the occurrence and distribution of income.
  • Detection and evaluation of the impact of various factors on the amount of profit.
  • Analysis of the probable reserves of the further increase in income based on the optimization of production volumes and costs.

The determination of profit

Analysis of financial results includes several stages. The first step identifies the profit from the sale of products. It is the difference between revenues from sales in current prices without VAT and the cost of production and subsequent sale of goods and material values.

The cost

Determining the financial result, experts include in the cost of:

  • The material costs.
  • Depreciation charges for full restoration of fixed assets.
  • Payroll costs, including bonuses are not only employees, but also supervisors, specialists and other employees for performance. The rationing of expenses on payment of labor affect the output or other financial performance of the organization.
  • State social insurance contributions, contributions for compulsory health and property insurance.
  • The payment of interest on short-term Bank loans, excluding overdue loans.
  • Costs for all types of repairs, as well as other expenses related to the production and sale of products.


The cost are not taken into account such payments, expressed in natural and monetary forms, such as:

  • Financial aid.
  • Deductions for additional leave provided in accordance with the decisions of the staff, the size of which is not provided by the law.
  • Payments on the basis of annual work.
  • Lump sum workers ' compensation retiring.
  • Income (interest, dividends) paid on shares and deposits of the workforce in the company's assets.
  • Other payments due to income which remained at the disposal of the organization.

Balance sheet profit

Analysis of financial results includes the definition of income (expenses) for non-operating transactions. They include:

  • Profit received from participation in joint activities.
  • Dividends on stocks, bonds and other securities owned by the company.
  • The amount of the rental property.
  • Incomes in the form of compensation for losses and economic sanctions.
  • Other amounts from operations not directly related to the release and sale of goods.

The amounts included in the budget as sanctions according to the legislation, are written off against income remaining at the disposal of the organization. Such deductions will include the making of profit, which was obtained as a result of breaches of state price discipline, non-compliance with technical conditions and standards, penalties in accordance with the amounts obtained illegally. Among other things, the composition of these payments included the amount of penalties withheld tax, penalty for failure to send budget payments and so on. As a key issue audit is formation of financial result in total retained earnings. It represents the amount of income from commodity and other sales and non-sale operations less expenses on them. The financial result of the enterprise is evaluated the influence of progressive factors. They contribute to the formation of profit. The financial result is influenced by the reduction of cost of goods, improving the range and improve the quality of manufactured products. Along with these detected factors, which are abuses by the company. In particular, assessing financial performance, the auditor detects the overcharging, a violation of accepted standards and so on.

The amount of taxable income

In its definition of adjustment balance of income. It runs as follows:

1. Decreases (increases) in accordance with the amount of the reduction (excess) of expenditures on the salaries of employees who are engaged in primary production, in the cost of goods sold compared to their standard value.

on the size of the rent payments that are made to the budget from the income according to the rules

- the amount of dividends received on bonds, stocks and other securities of the company;

- the amount of income received from the share participation in joint activities.

Along with these amounts, which are included in the budget as sanctions under the law at the expense of profit remaining at the disposal of the company, are excluded from expenses non-operating transactions for tax purposes.

Establishment and distribution of net income

This profit is calculated as the difference between the taxable carrying amount of the total sum and the amount of taxes with benefits. Directions will be distributed net income are chosen by the company independently. Public impact on decision-making is carried out by means of taxes, economic sanctions and incentives.