The procedure for filling out the report on financial results. Statement of financial results - the result of activities for the period

General characteristics of the income statement

Report on financial results (income statement) reports the amount of a company's income during a certain period of time, as well as the amount of expenses that were made to generate this amount of income. Net profit is formed as the difference between the sum of income and expenses. The basic equation underlying the income statement is:

Income - Expenses = Net profit

Investment analysts intensively study reports on financial results of companies. Stock analysts interested in them because stock markets often respond positively or negatively to high or low growth in company earnings with above-average or below-average earnings, respectively. Analysts who focus on fixed income instruments, should examine the components of the historical and forward-looking statements of financial results in order to obtain information about the opportunities of the companies. The stable generation of profits will allow them to expect promised payments on their debts during the business cycle. Corporations often pay more attention to the income statement than to other financial statements.

Components and format of the income statement

An example income statement is shown in Table 1. Note that the years can be listed in ascending order from left to right from the most recent year in the last column, or in descending order from last year in the first column. These are alternative data display formats. There are also differences in the provision of information about various elements. Companies can detail sources of income, expenses, etc. The analyst should always check the order of years and the way in which negative elements are presented before starting the analysis.

The income statement is also called the statement of operations, the income statement, or the profit and loss statement. This document contains the following elements:

• income- is positive cash flow from earned intermediary transactions, sales of goods and services, provision own funds on credit, etc.
• expenses are negative cash flow, which is formed in order to generate income. This includes money that was spent during the reporting period, as well as expenses for which the future value cannot be measured.

The top line of the income statement is usually the revenue. Revenue is the amount charged for the supply of goods or services in the ordinary course of business. Revenue is often used as a synonym for sales income, sales, turnover.

Table 1. Example of income statement

Profit represents the excess of income over expenses, and also includes the sale of a long-term asset at a cost that is higher than its carrying amount; in addition, this includes the repayment of liabilities for an amount that is less than their carrying amount.

Lesion is the excess of expenses over income of the company, as well as the sale of a long-term asset at a cost less than its book value; in addition, this repayment of the liability in an amount greater than its carrying amount.

Cost price of goods and services sold includes the costs of directly producing those goods and services.

Gross profit is the difference between revenue and cost of goods and services sold. When the income statement shows gross profit, the company uses a multi-stage display format, otherwise a single-stage format is used. For industrial and trading companies, for which gross profit is the most relevant, gross profit is calculated as revenue minus the cost of goods that were sold. For service companies, gross profit is calculated as revenue minus the cost of the services that were provided. Thus, gross profit is the sum of income after deducting the costs of producing goods or services. Other expenses related to business management, capital raising, etc. subtracted from gross profit.

Selling and management expenses- These are operating expenses that are associated with the management of the company and the organization of the marketing process.

Operating profit is the profit from operating activities and represents a pre-tax result excluding non-operating income and expenses. FROM operating profit operating expenses are additionally deducted, such as cost of sales, administrative, marketing and research and development expenses and others. Operating income reflects the company's profit at its normal economic activity before taxes. For financial companies interest expense will be included in operating expenses and deducted from the calculation of operating profit. For non-financial companies, interest expenses will not be included in operating expenses and will be deducted after operating income, as they relate to non-operating activities for such companies. For some companies that consist of several separate business segments, operating income can be useful in evaluating the performance of individual enterprises. This reflects the fact that interest and tax expenses are more relevant at the level common company rather than at the individual segment level. Specific calculations of gross profit and operating profit may differ from company to company, so the reader financial reporting can review the notes to the financial statements to identify material differences.

Non-operating profit- income from ancillary activities.

net profit often referred to as the bottom line. The basis for this expression is that net income is the final line on the income statement. Because net income is often viewed as the most appropriate number to describe a company's performance over a period of time, the term bottom line is sometimes used in common business jargon to mean any final or most appropriate result.

Net profit also includes gains and losses that are inflows and outflows of assets, respectively, not directly related to the ordinary activities of the business. For example, if a company sells its products, this amount is shown as income and expenses, which are shown separately. However, if a company sells excess land that is not needed, the cost of the land is subtracted from the sale price and the net result is reported as profit or loss.

Cumulative financial result of the period. The general definition equation for net income are expenses minus income. There are, however, some items of income and expenses that, according to accounting rules, are excluded from the calculation of net income. To understand the fair value relationship equity one period with the amount of equity for another period, it is necessary to consider the nature of these elements and their impact on the total financial result.

In addition to presenting net income, income statements also present certain other financial results that are material to users of financial statements. Some of the financial results are determined by International Financial Reporting Standards (IFRS), in particular, income from non-core operations. International Financial Reporting Standard (IAS) No. 1, Presentation of Financial Statements, requires certain items, such as revenue, interest payments, and income taxes, to be separately disclosed in the income statement. IFRS No. 1 also requires that financial results are also " presented in the income statement when such presentation is relevant to an understanding of the entity's financial performance."IFRS No. 1 says that expenses can be grouped either by their nature or by function. For example, by grouping expenses such as depreciation of equipment or depreciation of administrative facilities into one item called depreciation, grouping occurs by the nature of the expenses. An example of grouping by function will occur, for example, if all costs associated with sales are summed up in separate line cost, which will include some salaries (for example, production personnel), material costs, depreciation of fixed assets and other costs associated with production.

Thus, some aspects of reporting and reporting vary by industry, while others reflect differences in accounting policies and practices from one company to another. In the process of analyzing the income statement, it is worth paying attention to such differences, which will allow you to formulate more correct conclusions about the company's ability to generate profit.

Determining the company's revenue in the income statement

Revenue is the top line on the income statement. In a simple hypothetical scenario, revenue recognition is not a problem. For example, a company sells goods to a customer for cash with no option to return the goods: When should the company recognize revenue? In this case, it is clear that income must be recognized when the goods are exchanged for cash. In practice, however, determining income can be somewhat more difficult for a number of reasons.

An important aspect with respect to income recognition is that it can occur independently of movements Money . For example, suppose a company sells goods to a customer on credit and therefore does not actually receive cash at the time the goods are delivered. The basic principle of the accrual method is that income is recognized when it is earned, so that financial reports companies record a sale when the related transaction has been completed and the related receivables have been generated.

Later, when the cash passes into the hands of the company, the company's financial statements simply reflect that the cash was received and part of the accounts receivable repaid (the part that is associated with a particular transaction). In addition, there are situations where a company receives cash up front and actually delivers the product or service later, perhaps over a period of time. In this case, the company will record deferred income, which is then recognized as earned after a certain period of time. (One example would be a prepaid subscription to a magazine that must be delivered periodically over time.).

Basic principles for revenue recognition promulgated by the relevant regulatory bodies.

Advice on international standards financial statements (IASB) stipulates that revenue from the sale of goods must be recognized (in the income statement) when the following conditions are met:

The entity transferred to the buyer significant risks and benefits associated with the ownership of goods.

The company does not retain no managerial functions to the extent usually associated with ownership, no effective control over the goods sold.

The amount of revenue can be accurately assessed.

It is likely that economic benefits associated with the operation enter the enterprise.

Costs incurred or to be incurred in connection with the transaction may be reliably priced.

The International Accounting Standards Board notes that the transfer of risks and rewards of ownership usually occurs when the goods are delivered to the customer or when the legal right ownership of the goods. However, as noted above in the rest of the terms, the transfer of goods does not always result in revenue being recognized. For example, if goods are delivered to a retail store to be sold, but with a return clause in the event of low demand for the product, and ownership of the goods is not transferred, no revenue will be recognized at the time of transfer.

The Accounting Standards Board (FASB) specifies that income should be recognized when it is "realized, or realizable and earned." Commission on securities and the US Exchanges (SEC), which has been motivated to explain the essence of determining revenue due to the frequency of revenue overstatement due to fraud and/or misstatement, provides guidance on how to apply accounting principles. These guidelines list four criteria for determining whether income is realised, realizable and income earned:

1. There is evidence of an agreement between buyer and seller. This approach eliminates the practice when the seller delivers the goods to the client before the end of the reporting year, and returns the goods after the end of the reporting year and the preparation of a report on the financial results of the company.

2. The product has been delivered or the service has been provided. This approach eliminates the practice when the goods have already been delivered, but the main risks and rewards of the goods still belong to the company.

3. The price is fixed or can be fixed.

4. The seller is confident that the funds under the transaction will be returned. This principle makes it possible to exclude the situation when the seller most likely will not receive funds for the services provided.

Council Standards for IFRS treated separately as revenue for services:

1. If the outcome of a transaction involving the provision of services can be measured reliably, the revenue associated with the transaction is recognized at the completion of the transaction on reporting date.

2. The result of a transaction can be reliably estimated if the following conditions are met:

The amount of proceeds can be estimated.

It is probable that the economic benefits (eg cash) associated with the transaction will flow to the entity.

The stage of completion of the transaction at the reporting date can be precisely determined.

The costs incurred in the transaction and the costs required to complete the transaction can be accurately estimated.

Companies may disclose their revenue recognition policies in the notes to their financial statements. Analysts should carefully review this policy to understand how and when a company recognizes revenue, which may differ depending on the types of products sold and services provided.

Determination of company expenses in the income statement

Expenses are subtracted from income to get the value of the company's net profit or loss. According to the IFRS Framework, expenses are "a decrease in economic benefits during the reporting period in the form of an outflow of cash, a decrease in assets, or an incurrence of liabilities that result in a reduction in equity, other than those relating to distributions to equity holders."

The definition of expenses includes all kinds of losses, as well as expenses that arise in the course of the ordinary activities of the organization. Costs that arise in the ordinary course of an entity's activities include, for example, cost of sales, wages and depreciation. They usually represent the disposal or "depletion" of assets such as cash and cash equivalents, inventory, property, plant and equipment.

Losses are other items that meet the definition of expenses and may arise in the ordinary course of an entity's business or not. Losses represent a reduction in economic benefits and are thus no different from other expenses in nature. Therefore, they are not considered a separate element of these Conceptual Frameworks.

Similar to the revenue recognition issue, in a simple hypothetical scenario, expense recognition is not an issue. For example, suppose a company purchased goods with cash and sold all goods in the same period. When a company has paid for goods, it is clear that the outflow is equal to the cost of those goods and should be recognized as an expense (cost of goods sold) in the financial statements. Let's also assume that the company paid all operating and administrative expenses in cash during each accounting period. In such a simple hypothetical scenario, there would be no expense recognition problems. In practice, however, both the recognition of income and the determination of expenses can be somewhat more complex.

General principles

In general, an entity recognizes an expense in the period in which the economic benefits associated with the expense are consumed (i.e. used) or some previously recognized economic benefit is lost.

The general principle for recognizing expenses is the matching principle, also known as " compliance of expenses with income". Under the matching principle, a company directly matches some expenses (such as cost of goods sold) with their associated revenues. Unlike the simple scenario where a company buys goods and sells them all in one reporting period, in practice, more likely, some of the sales in the current period will be made from inventory purchased in the previous period, and it is also likely that some of the inventory purchased in the current period will remain unsold at the end of the current period and therefore be sold in the next period. Compliance requires that the cost of goods sold by the company correspond to certain revenues of the period.

Period non-operating expenses, that is, expenses that are less directly related to certain revenues, are recognized in the period in which the entity incurs the expenses or in the period in which the payment is due. Administrative expenses are an example of non-production expenses of the reporting period. Other expenses, which also correspond less directly to the income of the reporting period, are more related to future expected benefits; in this case, costs are distributed systematically over time. An example would be depreciation expenses.

Important in the process of determining costs is the chosen method of estimating the cost of inventories. According to PBU 5/01 Accounting for inventories, in domestic practice such methods of estimating the cost of inventories are used.

Table 2. - Summary table on methods for estimating the cost of reserves

Problems in the Cost Estimation Process

The following questions may come up during the cost estimation process.

Doubtful accounts receivable

When a company sells its goods or services on credit, it is likely that some customers unable to meet their obligations(i.e. unable to pay). At the time of the sale, it is not known what the solvency of a particular client will be. (If it were known that a particular customer would eventually become insolvent, then presumably the company would not sell to that customer on credit.) One possible approach to recognizing credit losses on customer receivables would be for the company to simply wait until until the client is declared bankrupt and only then the losses will be recognized. This approach is generally not consistent with generally accepted accounting principles.

According to the matching principle, at the time of revenue recognition, an entity must assess how much of the revenue will ultimately be lost. Companies make these estimates based on previous experience in managing bad accounts. Such estimates can be expressed as a percentage of total sales, total receivables, or the amount of receivables overdue by a certain amount of time. The Company records its estimate of the value of receivables as an expense in the income statement, and not as a direct reduction in income.

Warranty

Sometimes companies offer warranties on the products they sell. If the product is defective in some respect which is covered under the terms of the warranty, the company will bear the cost of repairing or replacing the product. At the time of the sale, the company does not know the amount of future costs that it will incur in connection with the exercise of the warranty right. One possible approach for a company is to simply wait until the actual costs to be incurred under the customer guarantee program are incurred. In this case, the expenses will be displayed at the time they are made. However, this leads to some discrepancy in the timing of expenditures and incomes.

In accordance with the compliance principle, a company must estimate the future costs associated with warranties to recognize the estimated warranty expense at the time of sale, and update the cost based on its own experience during the life of the warranty program.

Depreciation and amortization

Companies often carry acquisition costs of long-term assets. Long-term assets are assets that can generate economic benefits over a future period of time greater than one year. Examples are land(property), installations, equipment and intangible assets (assets that have no physical substance), such as trademarks. The cost of most long-lived assets spread over the time period over which they provide economic benefits. The two main types of non-current assets for which costs are not allocated over the time of use are land and those intangible assets that have an indefinite life. beneficial use.

Depreciation is the process of systematically allocating costs to non-current assets over the period over which the assets will generate economic benefits. Depreciation is the term that is usually applied to this process for physical long-term assets such as fixed assets (land is not subject to depreciation). Depreciation is also applied to intangible non-current assets with a limited useful life. Examples of intangible non-current assets with a finite useful life include an acquired mailing list, a patent with an expiration date, and a copyright with a definite expiration date. The term amortization is also commonly used to systematically deduct a premium or discount from the face value of a fixed income security over its life.

To calculate depreciation and amortization, an entity must select a depreciation method, estimate the useful life of an asset, and estimate residual value. Obviously, different options will be different and have different impacts on depreciation and therefore net income.

Implications for financial analysis

The company's assessment of doubtful debts and/or warranty costs may affect its net income. In addition, a company's choice of major aspects of depreciation, the depreciation method, the estimation of the useful life of assets, and the estimation of assets' expected salvage value may have an adverse effect on net income. These are just some of the opportunities and valuations that affect a company's bottom line.

As with the revenue recognition policy, a company's choice of cost estimation method can be classified as by the level of conservatism. A policy that results in expense recognition later rather than earlier is considered less conservative. In addition, many expense items require the company to forecast future expenses, which can significantly affect the bottom line. Analyzing financial statements, and in particular comparing one company's data with those of a competitor, requires an understanding of the differences in these estimates and their potential impact.

If, for example, a company shows significant annual changes in its approach to the assessment of uncollectible receivables, warranty costs or the expected useful life of assets, the analyst should seek to understand the underlying causes of this phenomenon. Are the changes related to changes in business operations (for example, lower estimated warranty costs reflect a recent experience of fewer warranty claims due to improved product quality)? Or are the changes seemingly unrelated to changes in business operations and thus perhaps a signal that the company is manipulating valuations to achieve some effect on net income?

As another example, if two companies in the same industry are very different when it comes to valuing bad accounts as a percentage of sales, warranty costs as a percentage of sales, or expected useful lives as a percentage of assets, it is important to understand the root causes. such a phenomenon. These differences arose due to differences in the economic activities of the two companies(for example, a lower share of receivables in one of the companies will reflect a higher creditworthiness of the client base, or perhaps more strict rules credit policy)? Another difference will be the difference in the expected useful lives of the assets if one of the companies operates with more modern equipment. Or, on the contrary, the revealed differences in the conditions of the same economic activity of two companies, perhaps, signal that one of the companies manipulates estimates?

Details of the company's accounting policies and significant estimates may be described in the notes to the financial statements.

Whenever possible, the monetary effect of using different approaches in policies and valuations should be taken into account by the analyst when comparing different companies. An analyst can use the cash effect to adjust reporting data, including in terms of the formation of expenses, in order to ensure that the principle of comparability is observed in the process of financial analysis.

Even when the monetary consequences of differences in policies and estimates cannot be accurately calculated, it is usually possible to characterize the relative conservatism of policies and estimates and therefore to qualitatively assess potential differences that could affect the amount of reported expenses and thus financial indicators.

Analysis of the income statement

In the process of analyzing the income statement, it is worth using two main analytical tools: horizontal-vertical analysis And ratio analysis. When reviewing a statement of income, the purpose of the process is to evaluate the performance of a company over a period of time - compared to its own historical performance or compared to another company.

Horizontal-vertical analysis of the income statement

Vertical analysis of the income statement involves displaying each position in the income statement as a percentage of revenue. Such an analysis allows comparison of data across time periods (time series analysis) and between individual companies of different sizes.

An analysis example is presented in the following table:

Table 3 - An example of a vertical analysis of the income statement

In this way, the analyst can compare the income statements of different companies of different sizes. When preparing a vertical analysis of the income statement, as shown in Table 3, the analyst can easily see that the percentage of company B's expenses and profits relative to the amount of revenue is exactly the same as for company A. In addition, although the operating income of company C is lower than Company B in absolute terms, it is higher in percentage terms (20 percent for Company C compared to 15 percent for Company B). This means that for every $100 of sales, Company C generates $5 more operating profit than Company B. In other words, Company C is more efficient and able to generate more profit from its limited resources than Company B.

The vertical analysis of the income statement also highlights the differences in the strategies of the companies. Comparing the two large companies, you can see that Company A reports a higher share of gross profit in total sales compared to Company B (70 percent versus 25 percent). Given that both companies operate in the same industry, the question arises why company A can generate so much more gross profit?

One possible explanation can be found by comparing the operating costs of the two companies. Company A spends significantly more on other operating expenses and on advertising (sales expenses), while Company B does not make such expenses. Advertising spending is likely to lead to more brand awareness. Thus, based on these differences, it can be assumed that company A sells more recognizable products, which over time will become even more competitive in the market by improving the image of brand A.

Company B can sell its products cheaper (with a lower share of gross profit in the amount of sales), but not save money, but invest it in research and development or advertising. In practice, the differences between companies are more subtle than in this hypothetical example, but this example allowed us to demonstrate the essence of the vertical analysis of the report on financial results. The analyst, having noted significant differences, will seek to understand the underlying causes of the differences and their implications for future activities companies.

For most costs, comparison with revenue is an acceptable technique. However, in the case of determining the effectiveness of the management of corporate income taxes, it is necessary to compare the cost of tax with the amount of profit before tax. In the case of different shares of current income tax in total amount earnings before tax, the analyst can use the explanatory notes to the financial statements to explore the reasons for differences in effective tax rates. To project companies' net profits into the future, the analyst will project pre-tax earnings and then apply the estimated effective tax rate based in part on historical tax rates.

Vertical analysis of the income statement is especially useful when comparing companies with each other over a period of time or when comparing companies with industry data. The analyst may select individual competing companies for comparison, use industry data from published sources, or collect data from databases based on a selection of peer companies or broader industry data. The performance of an individual company can be compared to industry data to assess relative performance.

With regard to horizontal analysis, this method involves comparing company data for several periods and calculating growth or growth rates. An example is shown in Table 4.

Table 4 - An example of a vertical analysis of the income statement

Horizontal analysis allows you to understand whether the company is developing, whether it is increasing sales, increasing the size of the financial result from its activities. All this allows you to understand the direction of the company's development, which provides the analyst with information about business prospects. A higher rate of revenue growth compared to expenses will indicate an increase in the efficiency of the company.

Net Income Margin = Net Income / Revenue (1)

The net profit margin measures the amount of net profit that was generated by the company for each ruble of revenue. A higher level of net income indicates a higher profitability of the company and thus this situation is more desirable. The net profit margin can also be found directly using the vertical method of analyzing financial statements.

A positive value of the indicator will indicate that each ruble of sales allows the company to make a profit. However, it is not always possible to determine exactly whether positive value high enough to justify conclusions about effective performance, or the current figure is still too low. Therefore, in order to determine the exact position of the company and the quality of the work of management, it is worth comparing the net profit margin of the enterprise with other companies in the industry. Also, profitability can be compared with its own indicator in previous periods of work. An increase in the indicator during the study period will indicate a continuous improvement in production, marketing, financial work companies. A decrease will indicate a reduction in the efficiency of the company's core and non-core activities.

Another indicator of profitability is the gross profit margin. Gross profit is calculated as revenue minus cost of goods sold, and gross profit margin is calculated as the ratio of gross profit to the company's revenue for the same period.

Gross profit margin= Gross profit / Revenue (2)

The gross profit margin (also known as the gross profit margin) measures the amount of gross profit that falls on each ruble of sales. In this case, higher gross margins also indicate higher margins, and this is generally more desirable, although differences in gross margins reflect the different strategies of companies. For example, consider a situation where a company is pursuing a strategy to sell a differentiated product (for example, the product is differentiated based on brand, quality, advanced technology, or patent protection). A company is likely to be able to sell a differentiated product at a higher price than similar but undifferentiated products and is therefore more likely to show a higher gross margin than a company that sells an undifferentiated product. Although a company selling a differentiated product is likely to have a higher gross margin, achieving such a market position may take some time. At the initial stage of implementing the strategy, the company is likely to bear additional expenses to create a differentiated product, such as advertising or Scientific research and developments that will not be reflected in the gross profit calculation.

Thomas R. Robinson, International financial statement analysis / Wiley, 2008, 188 pp.

Kogdenko V.G., Economic analysis / Tutorial. - 2nd ed., revised. and additional - M.: Unity-Dana, 2011. - 399 p.

Buzyrev V.V., Nuzhina I.P. Analysis and diagnostics of financial and economic activities construction company/ Textbook. - M.: KnoRus, 2016. - 332 p.

The general form of the income statement is given in Appendix N 1 to Order N 66n.

The statement of financial results provides data for the current and previous years.

In column 1 "Explanations" indicate the number of the explanation to the corresponding line of the income statement.

Column 3 must be added independently in order to indicate the line code in it.

Let's consider what should be reflected in terms of certain indicators given in the income statement.

IN line 2110 reflect income from common species activities - proceeds from goods sold, work performed, services rendered. Please note: income must be indicated excluding VAT and excises.

The cost of goods sold (work performed, services rendered) corresponds to the indicator for line 2120. When calculating the total, it is taken into account with a minus sign, therefore it is enclosed in brackets.

IN line 2100 indicate the amount of gross profit (the difference between the indicators of lines 2110 and 2120), in line 2210- , in line 2220 - .

The financial result from the sale of goods (performance of work, provision of services) (the sum of lines 2100, 2210 and 2220) is recorded in line 2200. If it is negative, then the organization worked at a loss.

Income arising from participation in authorized capitals other organizations (dividends on shares) and joint activities, indicate in line 2310, but only if such income is not the main one. Otherwise, its value should be in line 2110.

IN line 2320 aggregated are the amounts of interest that the organization received in the reporting period on bonds, deposits, government securities, funds held on the current account, loans and advances. And the amounts that are accrued for payment already on their bonds and bills, as well as on loans and borrowings taken, are paid into line 2330. These are expenses, so write the amount in brackets.

IN lines 2340 And 2350 give other income and expenses that were not included in the indicators of the previous lines.

IN line 2300 calculate profit before tax by summing lines 2200 - 2350 and at the same time taking into account that expenses are indicated with a minus sign.

Lines 2410 - 2450 are intended for payers of income tax, therefore, "simplified" put dashes in them and proceed to the next line - 2460. In particular, it reflects the tax paid under the simplified taxation system (in brackets), as well as penalties and fines accrued for violations of tax laws.

IN line 2400 calculate the net profit (or loss) for the reporting year. For the "simplifiers" it will be profit minus the accrued single tax under the simplified system. By the way, the indicator on line 2400 of the income statement should coincide with the indicator of retained earnings (uncovered loss) from sec. III liabilities of the balance sheet for this year (minus the same indicator for last year).

Next comes reference Information. By line 2510 show the result of the revaluation of non-current assets of the organization carried out in the reporting period. Note that this line indicates only the change in additional capital that arose due to the revaluation of non-current assets carried out in the reporting period. The amounts of revaluation (markdown) of fixed assets and intangible assets, attributed to the financial result as other income (other expenses), are shown in line 2340 "Other income" or 2350 "Other expenses".

By line 2520 show the result from other operations, not included in the net profit (loss) of the period.

Dt Qt (accrued single tax according to USN)

Statement of financial results for 2015 according to general form will be filled in like this:

The accountant crossed out the lines of column 1. This is possible, since the company does not issue explanations for financial statements, whose numbers are indicated in this column.

Column 4 is the only one that requires filling in by the newly created organization. The accountant entered indicators in this column based on the data given in the table. Column 3 has also been added - to indicate line codes.

Yes, in line 2110 the accountant showed the proceeds. The value is 427.

IN line 2120- cost of sales - 186. This figure is in parentheses, that is, negative.

IN line 2210 business expenses are reflected - 43.

IN line 2220- managerial - 22.

Indicator lines 2200"Profit (loss) from sales" is equal to 176 (241 - 43 - 22).

IN line 2300"Profit (loss) before tax" duplicates the indicator from lines 2200 - 176.

IN line 2460 the accountant entered the amount of the accrued "simplified" tax - 26. The indicator is enclosed in brackets.

IN line 2400 the company's net income is calculated. It is equal to 150 (176 (line 2300) - 26 (line 2460)).

In the background section of the report on line 2500 the total financial result of the reporting period is indicated - 150.

All blank lines in column 4 have dashes.

The management at each enterprise seeks to generate income, increase sales, and solve other similar problems. Any activity should have an essence that boils down to a certain result. Reports are needed in order to document any type of financial transactions.

This document is the basis for the work of accounting. It gives a description of the financial performance of the enterprise over a certain period of time. Such periods are called reporting periods.

Most of the information is related to expenses and income.

And direct results of activity expressed in financial indicators.

The document requires the reflection of the expenses of any group - for management and commerce, for the production of finished products.

The document must be submitted to the tax organization no later than three months after the end of the reporting period.

Step by step instructions for filling out the document

Without the ability to count economic indicators correct filling of the report becomes impossible. There are a lot of such indicators in the form of report number 2. And each of the indicators has an individual code.

Let's start with a general enumeration of the data that must be present in the report:

1. Reference data.
2. Indicators of net profit with a loss.
3. Data on deferred assets, annual changes.
4. Profit and loss figures before taxation.
5. Losses or profit from the sale.
6. Group with other income and expense items for the year.
7. Interest received or already paid.
8. Gross profit, loss for the past year.
9. Expenses for commerce, management activities.
10. Cost of branded sales.
11. What is the revenue received during the year?

Excises and VAT are not included in all indicators mentioned in the report. This is especially important for the income group.

Where can I download an example form?

When compiling a document, it is better to look at an example. The form of the report on financial results is possible.

Spacing any negative exponents does not require the use of a minus sign. To indicate a negative value, parentheses are simply used.

The data for the current period are compared in without fail with what was before.

How to fill in the lines?

For filling, you can use the electronic form, tables. Then the process will be much easier.

You must enter your values ​​literally in each line.

• 2460. Here they write about amounts that are not included in the previous lines.
• 2450. Dedicated to changes in tax-type assets deferred for some time.
• 2430. Changes IT.
• 2421. The remainder of the PNO.
• 2410. With income tax based on the data referred to in the declaration.
• 2350. The result of subtracting the value of line 2330 from the expenses.
• 2340. Other income net of VAT and excises, values ​​from lines 2310 and 2320.
• 2330. Dedicated to the interest paid for the use of loans.
• 2310. Dividends and property received by an organization. To calculate them, the sum of the balance on the debit of account 91 is taken, we analyze this type of income, we use the correspondence of account 76.
• 2100. Gross profit minus commercial expenses.
• 2210. Income from core activities, commercial type
• 2120. Excises with VAT are deducted from the amount of expenses from core activities.
• 2110. Here they write about the revenue that the activity of an operational nature brought. Only taxes and other fees, VAT with excises are not taken into account.

What data should be reflected in the traffic report financial resources on foreign accounts? The rules for filling out the document are in.

Comparison of indicators in the report

Previously, it was already reported about the need for comparison between the indicators of the current period and past ones.

This means that using uniform rules, all figures that are included in the report are formed.

There are two main reasons why non-comparable data types appear:

• Serious mistakes of previous years identified in the reporting period.
• Changes in the accounting policy of organizations.

Last year's data needs to be corrected until a match is reached with the position in which the enterprise is now. Do not make changes to reports compiled for previous years.

Line numbering is absent in the approved form No. 2. The encoding of strings is separately specified on the basis of Order No. 66n of 2010.

Usually accountants rely on the fourth appendix to this document. Line numbering is mandatory for those who plan to submit a report to the statistical authorities, the Federal Tax Service.

The main thing is to take into account the features that are characteristic of a particular legal entity. For example, a special kind of form No. 2 exists for entities working in small businesses.

It is with them that the introduction of data of an enlarged type is associated. To these are added a large number of lines included in the standard form.

On different copies, signatures that differ from each other are unacceptable.

If the report is sent to the regulatory authorities in electronic form, then there is no need to duplicate it in paper form.

Submission of the document to the tax authorities and possible fines

The document is submitted to the inspection along with other elements of the financial statements. There is also an intermediate option, which is formed a maximum of a month after the end of the reporting period.

Penalties apply only to those organizations that do not comply with the requirements of current legislation. The main thing is to carefully approach the completion of the document.

Then there will be no problems in the future. Reporting is useful for those who want to identify reserves that can improve the efficiency of current work.

For more information on how to prepare a financial statement, watch this video:

The income statement for 2019 is a form in which the income, expenses and financial results of the organization for 2018 are given. In the article, we provided a table with a transcript of the articles of the report. You will also find samples and examples of filling out the form, you can download the form and sample, as well as fill out the report online.

What is a statement of financial results

The income statement is a mandatory form that is part of the accounting. The Ministry of Finance fixed this rule in PBU 4/99 and approved it by order No. 43n of 07/06/1999).

In the regulation, officials indicated what is included in the reporting: “accounting reports consist of a balance sheet, a profit and loss statement, annexes to them and explanatory note, as well as the auditor's report. "You can make a report online and without leaving the article.

Statement of financial results and income statement for 2018

The Ministry of Finance in the regulation on accounting gives the name "profit and loss statement". However, this is the old name of the financial results report. The Ministry of Finance renamed the form back in 2015 by its order of 04/06/2015 No. 57n. Many accountants out of habit call the form in the old way.

The composition of financial statements is told by experts. Read the full course in the program "". And in the section "Form of the income statement" you can download the form for both the typical form and the simplified one.

Who signs the OFR

Financial statements (Form 2) are considered to be drawn up after its paper version is signed by the head of the company (part 8 of article 13 of Law No. 402-FZ). But officials allow that the reporting instead of the director was signed by any other employee by proxy. Chief Accountant- not an exception. But all copies of the reporting must be signed by the same representative of the organization. That is, both the IFTS and Rosstat must submit reports with the same signatures.

The tax authorities agree with this approach, as stated in the letter of the Federal Tax Service of Russia dated June 26, 2013 No. ED-4-3 / [email protected]. The document is posted on the official website of the service and brought to the lower inspections.

Anyway annual reporting must be signed on paper. If you send it to the inspection electronically, then you also do not need to hand over the paper version. But in case of verification, the printed signed version should be stored in the accounting department.

Where to submit a report

Forms of the company are submitted to the tax and statistics as part of the annual tax reporting. The report is also viewed by other users, such as shareholders. The rules for compiling a report in such cases differ.

Answered by Elena Popova

state councilor tax service RF I rank

“In the standard form, the lines are not numbered. See the codes for the lines in Appendix 4 to the order of the Ministry of Finance dated 02.07.2010 No. 66n. You need to number the lines only if you submit reports to the statistics department and to the tax office.

However, there are features for certain categories organizations. For example, small businesses reflect aggregated indicators in the balance sheet, which include several indicators. In this case, put down the line code according to the indicator that is larger in value than the others included in this line.

If you are reporting to shareholders……..”

Deadline for submission of the financial report

Companies must submit to the tax accounting forms not later than three months after the end of the reporting year (Article 23 of the Tax Code, Article 18 federal law dated 06.12.2011 No. 402-FZ).

For 2018, the form will be filled out in 2019, and the deadline will move to April, since March 31 is Sunday. The next business day is Monday April 1st.

Form of income statement

The annual financial statements consist of the Balance Sheet and Form 2, as well as annexes to them (part 1 of article 14 of the Federal Law of December 6, 2011 No. 402-FZ).

The balance sheet and financial report are submitted on standard or simplified forms. Both those and others are approved by order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n. How to fill in the lines, in the section below.

The statement of financial results reflects the following indicators:

• revenue;
• cost of sales;
• Gross profit (loss);
• selling and administrative expenses;
• profit (loss) from sales;
• interest receivable and payable;
• other income and expenses;
• profit (loss) before taxation;
• change in deferred tax assets and liabilities;
• Net income (loss);
• reference Information.

Sample report on financial activities enterprises (form 2) are given in the next section.

A sample of filling out a report on financial results in 2019

How to fill out the income statement

When compiling the Statement of Financial Results (Form 2 or OFR) for 2018 in 2019, see the recommendations of the Ministry of Finance of Russia on conducting an audit for reporting period.

Reflect all income in the report net of VAT and excises (paragraph 3 of PBU 9/99). All expenses, as well as negative indicators, should be indicated in parentheses, without a minus sign.

Comparability of income statement indicators

The indicators of the reporting period should be comparable with those of the same period last year. That is, they must be formed according to the same rules. Incomparability of indicators may arise if in the reporting period there were identified significant errors past years or has changed accounting policy organizations. In this case, in Form 2 of the balance sheet for the current period, last year's figures will have to be adjusted based on the current conditions. But reports for past periods do not need to be corrected.

If some balance sheet information requires a detailed detailed breakdown, it is entered in a separate form - Explanations to the Balance Sheet and Statement of Financial Results. And in the Report in the column "Explanations" they make a link to the corresponding table or the number of explanations of this form.

Please note: errors identified in accounting and financial statements must be corrected. How to make corrections, experts explain.

Income tax in line 2410-2400

The third category includes organizations that do not pay income tax under the law, but must keep accounting (clause 1 PBU 18/02). These are, for example, payers of UTII or gambling tax. Such organizations, when filling in the lines , , can put dashes.

The amount of UTII or tax on the gambling business, reducing the indicator of line 2300 "Profit (loss) before tax", indicate in line 2460 "Other". At the same time, the organization has the right to determine the details of this line on its own. The same rules should be followed by organizations that combine common system taxation from payment of UTII or gambling tax.

Which line should reflect the single tax on simplified taxation or UTII:

Net profit in line 2400

In line 2400 “Net profit (loss)”, indicate the result calculated by the formula:

Check that the net profit (loss), reflected in the Report for the year, coincides with the closing balance of account 99 “Profit and Loss” (taking into account rounding ). It must be written off to account 84"Undestributed profits ( uncovered loss)” during the reformation of the balance sheet (form No. 1).

Transcription of report articles

In the table, we have given the articles of the report on financial performance and indicators that reflect for each line of Form 2.

The income statement for 2019 is a form in which the income, expenses and financial results of the organization for 2018 are given. In the article, we provided a table with a transcript of the articles of the report. You will also find samples and examples of filling out the form, you can download the form and sample, as well as fill out the report online.

What is a statement of financial results

The income statement is a mandatory form that is part of the accounting. The Ministry of Finance fixed this rule in PBU 4/99 and approved it by order No. 43n of 07/06/1999).

In the regulation, officials indicated what is included in the reporting: “accounting reports consist of a balance sheet, a profit and loss statement, annexes to them and an explanatory note, as well as an audit report.” You can draw up a report online and without leaving the article.

Statement of financial results and income statement for 2018

The Ministry of Finance in the regulation on accounting gives the name "profit and loss statement". However, this is the old name of the financial results report. The Ministry of Finance renamed the form back in 2015 by its order of 04/06/2015 No. 57n. Many accountants out of habit call the form in the old way.

The composition of financial statements is told by experts. Read the full course in the program "". And in the section "Form of the income statement" you can download the form for both the typical form and the simplified one.

Who signs the OFR

Financial statements (Form 2) are considered to be drawn up after its paper version is signed by the head of the company (part 8 of article 13 of Law No. 402-FZ). But officials allow that the reporting instead of the director was signed by any other employee by proxy. The chief accountant is no exception. But all copies of the reporting must be signed by the same representative of the organization. That is, both the IFTS and Rosstat must submit reports with the same signatures.

The tax authorities agree with this approach, as stated in the letter of the Federal Tax Service of Russia dated June 26, 2013 No. ED-4-3 / [email protected]. The document is posted on the official website of the service and brought to the lower inspections.

In any case, the annual accounts must be signed on paper. If you send it to the inspection electronically, then you also do not need to hand over the paper version. But in case of verification, the printed signed version should be stored in the accounting department.

Where to submit a report

Forms of the company are submitted to the tax and statistics as part of the annual tax reporting. The report is also viewed by other users, such as shareholders. The rules for compiling a report in such cases differ.

Answered by Elena Popova

State Advisor of the Tax Service of the Russian Federation of the 1st rank

“In the standard form, the lines are not numbered. See the codes for the lines in Appendix 4 to the order of the Ministry of Finance dated 02.07.2010 No. 66n. You need to number the lines only if you submit reports to the statistics department and to the tax office.

At the same time, there are features for certain categories of organizations. For example, small businesses reflect aggregated indicators in the balance sheet, which include several indicators. In this case, put down the line code according to the indicator that is larger in value than the others included in this line.

If you are reporting to shareholders……..”

Deadline for submission of the financial report

Companies must submit tax accounting forms no later than three months after the end of the reporting year (Article 23 of the Tax Code, Article 18 of Federal Law No. 402-FZ of 06.12.2011).

For 2018, the form will be filled out in 2019, and the deadline will move to April, since March 31 is Sunday. The next business day is Monday April 1st.

Form of income statement

The annual financial statements consist of the Balance Sheet and Form 2, as well as annexes to them (part 1 of article 14 of the Federal Law of December 6, 2011 No. 402-FZ).

The balance sheet and financial report are submitted on standard or simplified forms. Both those and others are approved by order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n. How to fill in the lines, in the section below.

The statement of financial results reflects the following indicators:

• revenue;
• cost of sales;
• Gross profit (loss);
• selling and administrative expenses;
• profit (loss) from sales;
• interest receivable and payable;
• other income and expenses;
• profit (loss) before taxation;
• change in deferred tax assets and liabilities;
• Net income (loss);
• reference Information.

A sample report on the financial activities of the enterprise (form 2) is given in the next section.

A sample of filling out a report on financial results in 2019

How to fill out the income statement

When compiling the Statement of Financial Results (Form 2 or OFR) for 2018 in 2019, see the recommendations of the Ministry of Finance of Russia on conducting an audit for the reporting period.

Reflect all income in the report net of VAT and excises (paragraph 3 of PBU 9/99). All expenses, as well as negative indicators, should be indicated in parentheses, without a minus sign.

Comparability of income statement indicators

The indicators of the reporting period should be comparable with those of the same period last year. That is, they must be formed according to the same rules. Incompatibility of indicators may arise if significant errors of previous years were identified in the reporting period or the accounting policy of the organization has changed. In this case, in Form 2 of the balance sheet for the current period, last year's figures will have to be adjusted based on the current conditions. But reports for past periods do not need to be corrected.

If some balance sheet information requires a detailed detailed breakdown, it is entered in a separate form - Explanations to the Balance Sheet and Statement of Financial Results. And in the Report in the column "Explanations" they make a link to the corresponding table or the number of explanations of this form.

Please note: errors identified in accounting and financial statements must be corrected. How to make corrections, experts explain.

Income tax in line 2410-2400

The third category includes organizations that do not pay income tax under the law, but must keep accounting (clause 1 PBU 18/02). These are, for example, payers of UTII or gambling tax. Such organizations, when filling in the lines , , can put dashes.

The amount of UTII or tax on the gambling business, reducing the indicator of line 2300 "Profit (loss) before tax", indicate in line 2460 "Other". At the same time, the organization has the right to determine the details of this line on its own. The same rules should be followed by organizations that combine the general taxation system with the payment of UTII or gambling tax.

Which line should reflect the single tax on simplified taxation or UTII:

Net profit in line 2400

In line 2400 “Net profit (loss)”, indicate the result calculated by the formula:

Check that the net profit (loss), reflected in the Report for the year, coincides with the closing balance of account 99 “Profit and Loss” (taking into account rounding ). It must be written off to account 84"Retained earnings (uncovered loss)" during the reformation of the balance sheet (form No. 1).

Transcription of report articles

In the table, we have given the articles of the report on financial performance and indicators that reflect for each line of Form 2.