Other near-legal disciplines: analysis of financial statements l.v. dontsova n.a
The textbook substantiates the theoretical, methodological and practical provisions of the modern concept of analysis of financial statements of business entities. Based on the latest regulatory documents, the authors set out in detail the methodology for compiling and analyzing Form No. 1 "Balance Sheet", Form No. 2 "Profit and Loss Statement", Form No. 3 "Statement of Capital Changes", Form No. 4 "Statement of Cash Flows ", Form No. 5" Appendix to the balance sheet ", form No. 6" Report on the targeted use of funds received "by quarters and in general for the reporting period. The material presented is illustrated with an end-to-end digital example.
The publication is addressed to teachers and students of economic universities, employees of accounting services, financial directors, as well as students in the system of training and certification of professional accountants and auditors.
TABLE OF CONTENTS
FOREWORD 3
1. FINANCIAL (ACCOUNTING) REPORTING - INFORMATION BASE OF FINANCIAL ANALYSIS 5
1.1. Purpose, basic concepts, objectives of the analysis of financial statements 5
1.2. Concept, composition and procedure for filling out forms of financial (accounting) statements 10
1.2.1. About the volume of financial statements 11
7.2.1. Requirements for the reliability of reporting 13
7.2.3. Financial Statement Users 15
12.4. Reporting period and reporting date 17
1.2.5. The procedure for drawing up reporting forms 18
1.2.6. Role of the Explanatory Note in Disclosure 23
12.7. The procedure for signing financial statements 25
1.2.8. Addresses and timing of financial statements 25
12.9. The procedure for amending the reporting of an organization 26
1.2.10. Publicity of financial statements 27
1.2.11. Financial statement audit 29
1.3. Contents of financial reporting forms 30
1.3.1. Balance sheet content 30
1.32. Contents of the profit and loss statement 39
1.3.3. Contents of the statement of changes in equity 49
1.3.4. Content of the statement of cash flows 51
1.3.5. Contents of the appendix to the balance sheet 53
1.4. Financial Statement Analysis Flow 56
1.5. Impact of inflation on financial statements 59
1.5.1. Reporting data comparability 59
1.5.2. Inflation and financial statements 60
Chapter 1 Review Questions 71
2. METHODOLOGICAL BASIS OF FINANCIAL ANALYSIS 72
Checklist for chapter 2 86
3. ANALYSIS OF FORM No. 1 "ACCOUNTING BALANCE" 87
3.1. General assessment of the structure of the organization's property and its sources according to balance sheet data 87
3.2. The results of a general assessment of the structure of assets and their sources according to the provided balance sheet 94
3.3. Analysis of balance sheet liquidity 97
3.4. Calculation and assessment of financial solvency ratios 102
3.5. Criteria for assessing the insolvency (bankruptcy) of organizations 107
3.6. Determination of the nature of the financial stability of the organization, calculation and assessment of financial ratios of market stability according to the reporting data 125
3.6.1. Analysis of financial stability indicators 125
3.6.2. Analysis of the adequacy of funding sources for the formation of reserves 128
3.7. Classification of the financial condition of the organization according to the consolidated criteria for assessing the balance sheet 131
3.8. Analysis of indicators of intra-annual dynamics 137
3.9. General assessment of the business activity of the organization. Financial Cycle Calculation and Analysis 148
Chapter 3 Test Questions 160
4. ANALYSIS OF FORM No. 2 "REPORT ON PROFITS AND LOSSES" 162
4.1. Analysis of the level and dynamics of financial results according to reporting data 162
4.2. Analysis of costs incurred by the organization 167
4.2.1. The main types and characteristics of the classification of expenses of the organization 167
4.2.2. Cost Analysis by Item 170
4.3. Analysis of the influence of factors on profit 171
4.4. Profit dynamics analysis 175
4.5. Factor analysis of the organization's profitability 178
4.6. Consolidated system of indicators of the organization's profitability 182
4.7. Assessing the Impact of Financial Leverage 189
4.7.1. The essence of financial leverage 189
4.7.2. The relationship between economic profitability and return on equity 191
4.7.3. Leverage ratio calculation 194
Control questions for chapter 4 197
5. ANALYSIS OF FORM No. 3 "REPORT ON CAPITAL CHANGES" 199
5.1. Sources of asset financing 199
5.2. Assessment of the composition and movement of equity capital 204
5.2.7. Analysis of the composition and movement of equity capital 204
52.2. Calculation and measurement of net assets 206
Review questions for chapter 5 209
6. ANALYSIS OF FORM №4 "REPORT ON CASH FLOWS" 211
6.1. Analysis of cash flows according to financial statements 211
Test questions for chapter 6 220
7. ANALYSIS OF FORM No. 5 "ANNEX TO THE ACCOUNTING BALANCE" 222
7.1. Composition and estimation of the movement of borrowed funds 222
7.2. Analysis of receivables and payables 224
7.2.1. Analysis of accounts receivable 224
7.2.2. Accounts payable analysis 230
7.3. Analysis of depreciable property 232
7.3.1. Analysis of intangible assets 232
7.32. Analysis of fixed assets 238
7.4. Analysis of the movement of funds for financing long-term investments and financial investments 247
7.4.1. The essence and differences between the concepts of investments and financial investments 247
7.4.2. Investment Analysis Problems 251
7.4.3. Main indicators of the analysis of profitability of securities 252
7.5. Explanatory note to the annual financial statements ... 254
Chapter 7 Test Questions 257
8. DRAFTING FORECAST BALANCE 259
Review questions for chapter 8 263
9. FEATURES OF COMPOSITION AND ANALYSIS OF CONSOLIDATED STATEMENTS 264
9.1. The essence and basic concepts of consolidated financial statements 264
9.2. Procedures and principles for the preparation and presentation of consolidated financial statements 276
9.3. Primary Consolidation Methods 281
9.4. Subsequent Consolidation 286
9.5. Analysis of consolidated financial statements 288
Control questions for chapter 9 293
10. SPECIFICITY OF THE ORGANIZATION'S SEGMENTARY REPORTING 294
10.1. The essence and purpose of segment reporting 294
10.2. Disclosures by reportable segments 297
10.3. Steps for creating segment reporting of an organization 302
Chapter 10 Test Questions 304
APPENDICES 306
1. Balance sheet 306
2. Profit and Loss Statement 310
3. Statement of changes in equity 312
4. Statement of cash flows 315
5. Appendix to the balance sheet 317
6. Report on the targeted use of funds received 324
7. Dynamics of balance sheet indicators by quarters of the reporting year 326
8. Dynamics of indicators of the profit and loss statement of the organization in the reporting year 328
LITERATURE 330
1. FINANCIAL (ACCOUNTING) REPORTING - INFORMATION BASE OF FINANCIAL ANALYSIS 4 1.1. Purpose, basic concepts, objectives of the analysis of financial statements 4 1.2. Concept, composition and procedure for filling out forms of financial (accounting) statements 11 1.2.2. Requirements for the reliability of reporting 14 1.2.3. Users of financial statements 17 1.2.4. Reporting period and reporting date 20 1.2.5. The procedure for drawing up reporting forms 22 1.2.6. Role of the explanatory note in information disclosure 28 1.2.7. The procedure for signing financial statements 30 1.2.8. Addresses and timelines for the presentation of financial statements 30 1.2.9. The procedure for amending the organization’s reporting 31 1.2.10. Publicity of financial statements 33 1.2.11- Audit of financial statements 35 1.3. CONTENTS OF THE FINANCIAL STATEMENT FORMS 36 1.3.1. Contents of the balance sheet 36 1.3.2. Contents of the profit and loss statement 49 1.3.3. Contents of the statement of changes in equity 62 1.3.4. Contents of the cash flow statement 65 1.3.5. The content of the appendix to the balance sheet 67 1.4. The sequence of analysis of financial statements 72 1.5. Influence of inflation on financial reporting data 75 1.5.1. Comparability of reporting data 75 1.5.2. Inflation and financial statements 76 2. METHODOLOGICAL BASIS OF FINANCIAL ANALYSIS 91 3. ANALYSIS OF FORM №1 “ACCOUNTING BALANCE 109 3.1. General assessment of the structure of the organization's property and its sources according to the balance sheet 109 3.2. Results of the general assessment of the structure of assets and their sources according to the balance sheet 117 3.3. Analysis of the balance sheet liquidity 121 3.4. Calculation and assessment of financial solvency ratios 127 3.5. Criteria for assessing the insolvency (bankruptcy) of organizations 133 3.6. Determining the nature of the financial stability of the organization. Calculation and evaluation of financial ratios of market stability based on reporting data 156 3.6.1. Analysis of indicators of financial stability 156 3.6.2. Analysis of the adequacy of funding sources for stockpiling 160 3.7. Classification of the financial condition of the organization according to the consolidated criteria for assessing the balance sheet. 164 3.8. Analysis of indicators of intra-annual dynamics 172 3.9. General assessment of the business activity of the organization. Calculation and analysis of the financial cycle 184 ANALYSIS OF FORM No. 2 “PROFIT AND LOSS REPORT” 198 4.1. Analysis of the level and dynamics of financial results according to financial statements. 198 4.2. Analysis of costs incurred by the organization 204 4.2.1. The main types and characteristics of the classification of the organization's expenses 204 4. 2.2. Analysis of expenses by elements 207 4.3. Analysis of the influence of factors on profit. 209 4.4. Analysis of profit dynamics 214 4.5. Factor analysis of the profitability of the organization. 217 4.6. The consolidated system of indicators of profitability of the organization 222 4.7. Assessment of the impact of financial leverage 230 4.7.1. The essence of financial leverage 230 4.7.2. The relationship between economic profitability and return on equity 232 4.7.3. Calculation of the financial leverage ratio 236 5. ANALYSIS OF FORM No. 3 "REPORT ON CHANGES IN CAPITAL" 240 5.1. Sources of asset financing 240 5.2. Assessment of the composition and movement of equity capital 247 5.2.1. Analysis of the composition and movement of equity capital 247 5.2.2. Calculation and valuation of net assets 249 6. ANALYSIS OF FORM No. 4 “REPORT ON CASH FLOWS” 253 6.1. Analysis of cash flows according to reporting data 253 7. ANALYSIS OF FORM №5. “ANNEX TO ACCOUNTING BALANCE” 265 7.1. Composition and assessment of the movement of borrowed funds 265 7.2. Analysis of receivables and payables 268 7.2.1. Analysis of accounts receivable 268 7.2.2. Analysis of accounts payable 274 7.3. Analysis of Depreciable Property 277 7.3.1. Analysis of Intangible Assets 277 7.3.2. Analysis of fixed assets 285 7.4. Analysis of the movement of funds for financing long-term investments and financial investments 296 7.4.1. The essence and differences of the concepts of investments and financial investments 296 7.4.2. Investment analysis tasks 301 7.4.3. Main indicators of the analysis of profitability of securities 302 7.5. Explanatory note to the annual financial statements 304 8. DRAWING UP THE FORECAST BALANCE 308 9. FEATURES OF DRAWING UP AND ANALYSIS OF THE CONSOLIDATED REPORTING 313 9.1. The essence and basic concepts of the consolidated financial statements 313 9.2. Procedures and principles of preparation and presentation of consolidated financial statements 329 9.3. Primary Consolidation Methods 335 9.4. Subsequent Consolidation 342 9.5. Analysis of consolidated statements 345 10. SPECIFICITY OF SEGMENTAL REPORTING OF THE ORGANIZATION 351 10.1 The nature and purpose of segment reporting 351 10.2. Disclosure of information on reporting 355 10.3. Stages of creating segmental reporting of an organization 361
1. FINANCIAL (ACCOUNTING) REPORTING - INFORMATION BASE OF FINANCIAL ANALYSIS
1.1. Purpose, basic concepts, tasks of the analysis of financial statements
Financial Statement Analysis ~ is the process by which we assess the past and present financial position and performance of an organization. However, the main goal is to assess the financial and economic activities of our organization in relation to the future conditions of existence. Financial (accounting) reporting is the information base of financial analysis, because in the classical sense, financial analysis is the analysis of financial reporting data. Financial analysis is carried out in different ways, depending on the task at hand. It can: be used to identify problems in the management of production and commercial activities; serve to assess the performance of the organization's management; be used to select areas for capital investment, finally, to act as a forecasting tool for individual indicators and financial activities in general
Analysis is a tool for cognition of objects and phenomena of the internal and external environment, based on the analysis of the whole into its component parts and their study in interrelation and interdependence. Economic analysis is a system of special knowledge associated with the study of economic processes and phenomena in their interconnection, formed under the influence of objective and subjective factors.
Financial analysis, as part of economic analysis, represents a system of certain knowledge associated with the study of the financial position of an organization and its financial results, formed under the influence of objective and subjective factors, based on financial reporting data. The content of financial analysis is determined by its goals, objects of research and the subject and, in essence, gives an answer to the questions: what is being researched, how and why is the analysis carried out. The purpose of the analysis of financial statements is to obtain the key (most informative) parameters that give an objective and most accurate picture of the financial condition and financial results of the enterprise. The goal of the analysis is achieved as a result of solving a certain interrelated set of analytical tasks. An analytical task is the specification of the objectives of the analysis, taking into account the organizational, informational, technical and methodological capabilities of the analysis. The object of analysis is what the analysis is aimed at. Depending on the tasks set, the objects of analysis of financial statements can be: the financial condition of the organization, or financial results, or the business activity of the organization, etc. The subject of analysis is a person who is engaged in analytical work and prepares analytical reports (notes) for management, that is, an analyst. Financial analysis solves the following tasks
1) evaluates the structure of the organization's property and the sources of its formation; 2) reveals the degree of balance between the movement of material and financial resources; 3) assesses the structure and flows of equity and borrowed capital in the process of economic circulation, aimed at maximizing or optimal profit, increasing financial stability, ensuring solvency, etc.; 4) assesses the correct use of funds to maintain an efficient capital structure; 5) assesses the influence of factors on the financial results of activities and the efficiency of using the assets of the organization; 6) monitors the movement of financial flows of the organization, compliance with the norms and standards for the expenditure of financial and material resources, the feasibility of spending. In today's conditions, most enterprises are characterized by a “reactive” form of activity management, i.e. making management decisions as a reaction to current problems. This form of management gives rise to a number of contradictions between: the interests of the enterprise and the fiscal interests of the state; cost of money and profitability of production; the return on equity and the return on financial markets; the interests of production and financial services, etc. Analysis of financial statements acts as a tool for identifying problems in the management of financial and economic activities, for choosing areas for capital investment and forecasting individual indicators. One of the tasks of the enterprise reform is the transition to the management of financial and economic activities based on the analysis of the economic state, taking into account the setting of strategic goals for the enterprise, adequate to market conditions, and the search for ways to achieve them. The results of the financial and economic activities of the enterprise are of interest to both external market agents (consumers and producers, creditors, shareholders, investors) and internal (employees of administrative divisions, heads of the enterprise, etc.). The main, strategic, development tasks of any organization in a market economy include
Optimization of the company's capital structure and ensuring its financial stability; profit maximization; ensuring the investment attractiveness of the enterprise; creation of an effective enterprise management mechanism; achieving transparency of the financial and economic condition of the enterprise for owners (participants and founders), investors, creditors; use of market mechanisms by the enterprise to attract financial resources. The optimality of the management decisions taken depends on different directions of the policy of the enterprise's activity development:
- from the quality of economic analysis; from the development of accounting and tax policies; from the development of directions of credit policy; from the quality of management of working capital, accounts payable and receivable; from the analysis and management of costs, including the choice of depreciation policy.
1.2. The concept, composition and procedure for filling out forms of financial (accounting) statements
The main source of information for conducting financial analysis is financial (accounting) statements. Financial statements are a unified system of data on the property and financial position of an organization and on the results of its economic activities, compiled on the basis of financial accounting data in order to provide external and internal users with generalized information about the financial position of an organization in a form convenient and understandable for these users to accept certain business solutions.
The organization must prepare interim financial statements for the month, quarter with the cumulative total of the reporting year, unless otherwise provided by the legislation of the Russian Federation. When forming indicators of financial statements, it is necessary to be guided by
Federal Law "On Accounting" dated 21L 1.96 No. 129-FZ; Accounting Regulations “Financial Statements of an Organization” PBU 4/99, approved by order of the Ministry of Finance of the Russian Federation of July 6, 1999, No. 43n; by order of the Ministry of Finance of the Russian Federation dated January 13, 2000 No. 4n "On the forms of financial statements of organizations"; Methodological recommendations on the procedure for financing the indicators of the financial statements of the organization, approved by order of the Ministry of Finance of the Russian Federation dated June 28, 2000 No. 60n. This block of normative documents is related to the implementation of the Accounting Reform Program in accordance with International Financial Reporting Standards 1.2.1. About the volume of financial statements New approaches to the formation of financial statements are expressed in the rejection of standard forms of financial statements, i.e. from the same set of indicators about the work of the organization, regardless of the type of activity, scale of production, organizational and legal form, etc. As practice has shown, the standard forms for some organizations were redundant in terms of the indicators provided, and for others - insufficient. In this regard, there are three options for the formation of financial statements with conventional names: simplified, standard and multiple. A simplified version is for small businesses and non-profit (except for budgetary) organizations. In this case, a number of forms are not included in the annual financial statements - the Statement of Changes in Capital (Form No. 3), Statement of Cash Flows (Form No. 4), Appendix to the Balance Sheet (Form No. 5). By non-profit organ-
It is recommended that the Nation additionally include in the annual financial statements a Report on the intended use of the funds received (Form No. 6). The standard option is for commercial organizations belonging to the group of medium and large organizations. This option involves the formation of financial statements in relation to the samples of forms shown in the annex to order No. 4n, if the indicators given in these sample forms allow you to comply with the general requirements for financial statements set out in GTBU 4/99, the rules for evaluating articles of financial statements, as well as the disclosure requirements contained in the accounting regulations. Multiple option - for commercial organizations belonging to the group of the largest organizations, and large organizations with several types of activities. With this option, the number of forms that make up the organization's financial statements, as well as the variance in the presentation of reporting information, increase significantly for a number of reasons. So, it is advisable, instead of one form No. 5 (Appendix to the balance sheet), to present the indicators of its individual sections in the form of independent forms of financial statements, or a section characterizing the size of the organization's current expenses, to be included in the form of an appendix to Form No. 2 (Profit and loss statement ). Information by segment (operational and geographic) plays an important role in large companies.
However, in terms of the formation of financial statements, it is possible to select a fourth option for a separate group of organizations - joint-stock companies, whose securities are quoted on the stock market. They, along with the accounting statements formed in accordance with Russian rules, prepare annual financial statements based on the requirements of International Financial Reporting Standards (IFRS) and submit it to the organizer of trading on the securities market, investor and other interested parties upon their request. Since January 1, 2000, the annual financial (accounting) statements in accordance with the order of the RF Ministry of Finance dated January 13, 2000 No. 4n include the following forms: - Balance sheet (form No. 1); - Profit and loss statement (form No. 2); - Statement of changes in equity (form No. 3); - Cash flow statement (form No. 4); - Appendices to the balance sheet (form No. 5); - Report on the targeted use of funds (form No. 6); - explanatory note; - the final part of the auditor's report.
1.2.2. Requirements for the reliability of reporting
When the organization independently develops financial reporting forms based on the sample forms given in the annex to the order of the Ministry of Finance of the Russian Federation dated January 13, 2000 No. 4n "On the forms of financial statements of organizations", the general requirements for financial reporting must be observed (completeness, materiality, neutrality , comparability, comparability, etc.). The financial statements should include the data necessary to form a reliable and complete picture of the financial position of the organization, the financial results of its activities and changes in its financial position. If there is insufficient data to form a complete picture of the financial position of the organization, the financial results of its activities and changes in its financial position, then the organization includes the corresponding additional indicators and explanations in the financial statements. At the same time, the neutrality of the information contained in the financial statements should be ensured, that is, the unilateral satisfaction of the interests of some groups of interested users of financial statements over others should be included. If, through selection or presentation, the information influences the decisions and assessments of users in order to achieve predetermined results, the information is not neutral. The data of the financial statements of the organization must include indicators of the activities of all branches, representative offices and other divisions (including those allocated to separate balance sheets). Indicators on individual assets, liabilities, income, expenses and business operations, as well as components of capital should be presented in the financial statements of the
Owned in cases of their materiality and if without knowledge of them by interested users it is impossible to assess the financial position of the organization or the financial results of its activities. Each material indicator should be presented separately in the financial statements. Insignificant amounts of a similar nature or purpose may be pooled and not presented separately. An indicator is considered significant if its non-disclosure can affect the economic decisions of interested users, taken on the basis of reporting information. The organization's decision whether a given indicator is significant depends on the assessment of the indicator, its nature, and the specific circumstances of its occurrence. At a minimum, an organization must disclose in its financial statements data on the groups of items included in the balance sheet and items included in the profit and loss statement, in accordance with the requirement of the Accounting Regulation “Accounting statements of the organization” PBU 4/99. The interpretation of the relevant indicators of the groups of balance sheet items or items of the income statement, taking into account the size and characteristics of the data included in the group of items of the balance sheet or the item of the income statement, can be given by the organization directly in the above forms (as "including" or “Of them” to the corresponding groups of items or items) or in the notes to the balance sheet and income statement. At the same time, it should be borne in mind that a significant amount is recognized, the ratio of which to the total of the relevant data for the reporting year is at least five percent. An entity may elect to apply a criterion other than the above for the purposes of reporting material information. The organization, when drawing up the balance sheet, profit and loss statement and explanations to them, must adhere to the content and forms of financial statements adopted by it in the prescribed manner from one reporting year to another. At the same time, in case of non-completion of a particular item (line, column), provided in the form adopted by the organization, due to the absence of the corresponding assets, liabilities, income, expenses, business transactions in the organization in the reporting period, this item (line, column) is crossed out.
For each numerical indicator of financial statements, except for the report drawn up by the newly created organization for the first reporting period, data must be provided for at least two years - the reporting one and the one preceding the reporting one. If an organization decides to disclose data for each numerical indicator for more than two years (three or more) in the financial statements it presents, then the organization must ensure comparability of data for all periods. Comparative information for each numerical indicator can be included directly in the reporting forms adopted by the organization (including in the form of separate tables included directly in the balance sheet or profit and loss statement after the indicators, in the Appendix to the balance sheet (form No. 5), in forms developed and adopted by the organization independently) or in an explanatory note. The financial statements of the organization must ensure the comparability of reporting data with indicators for the previous reporting year (years) or the corresponding periods of previous reporting periods based on changes associated with the application of the Accounting Regulation "Accounting Policy of the Organization" PBU 1/98, legislative and other regulatory acts, taking into account the reorganization performed, etc. If the data for the period preceding the reporting period are incomparable in the data for the reporting period, then the first of the named data is subject to correction based on the rules established by regulatory enactments on accounting. Each material adjustment should be disclosed in the notes to the balance sheet and income statement together with the reasons for the adjustment.
1.2.3. Users of financial statements
User of financial statements - a legal or natural person interested in information about the organization. The work of analyzing financial statements must satisfy many requirements. The range of users of information contained in financial documents includes various categories - from serious analysts to casual "amateurs". They all use information about your organization, but with varying degrees of understanding and competence. In PBU 4/99, the user of financial statements is defined as a legal entity or individual interested in information about an organization. Financial reporting in Russia is of interest to two groups of external and one group of internal users
External users: 1. Users directly interested in the organization; 2. Users indirectly interested in it. The first group of external users includes the following users: 1) the state, first of all, in the person of tax authorities, which verify the correctness of the preparation of accounting documents, tax calculation, determine the tax policy; 2) existing and potential lenders that use reporting to assess the appropriateness of providing or extending a loan, determine loan conditions, strengthen loan repayment guarantees, and assess trust in an organization as a client; 3) suppliers and buyers who determine the reliability of business relations with this client; 4) existing and potential owners of the organization's funds, who need to determine the increase or decrease in the share of their own funds and assess the efficiency of the use of resources by the organization's management; 5) external employees who are interested in reporting data in terms of salary levels and job prospects in this organization. The second group of external users of financial statements are those who are not directly interested in the activities of the organization, but they need to study the statements in order to protect the interests of the first group of users of the statements. This group includes
1) audit services that check the compliance of the reporting data with the established rules in order to protect the interests of investors; 2) financial consultants who use the reporting to make recommendations to their clients regarding the placement of their capital in a particular company; 3) stock exchanges, evaluating the information provided in the reporting, upon registration of the relevant organizations, making decisions on the suspension of the activities of any company, assessing the need to change the accounting and reporting methods; 4) legislative bodies; 5) lawyers who need reporting information to assess the fulfillment of the terms of contracts, compliance with legal norms in the distribution of profits and payment of dividends, as well as to determine the terms of pension provision; 6) the press and news agencies using reporting to prepare reviews, assess development trends and analyze the activities of individual companies and industries, and calculate generalized indicators of financial activity; 7) state statistical organizations that use reporting for statistical generalizations by industry, as well as for comparative analysis and assessment of performance at the industry level; 8) trade unions interested in reporting information to determine their requirements for wages and terms of employment agreements, as well as to assess trends in the development of the industry to which this organization belongs. Internal users of reporting include: 1) top management of the organization; 2) managers of the appropriate levels, who, according to the reporting data, determine the correctness of investment decisions and the effectiveness of the capital structure, determine the main directions of the dividend policy, draw up forecast reporting forms and carry out preliminary calculations of financial indicators for the upcoming reporting periods, assess the possibilities of merging with another organization or its acquisition, structural reorganization.
1.2.4. Reporting period and reporting date
The reporting year for all organizations is the calendar year - from January 1 to December 31 inclusive. Reporting date - the date as of which the organization must prepare financial statements.
For the preparation of financial statements, the reporting date is the last calendar day of the reporting period. The organization must generate periodic financial statements no later than 30 days after the end of the reporting period, unless otherwise provided by the legislation of the Russian Federation. The first reporting year for newly created organizations is the period from the date of their state registration to December 31 of the corresponding year, and for organizations created after October 1 - to December 31 of the next year. Data on business transactions carried out for the state registration of organizations are included in their financial statements for the first reporting year. Monthly and quarterly reports are interim and are compiled on an accrual basis from the beginning of the reporting period. In accordance with the Accounting Regulation “Events After the Reporting Date” (PBU 7/98), a procedure has been established for reflecting events after the reporting date in the financial statements of commercial organizations. An event after the reporting date is a fact of economic activity that has had or may have an impact on the financial condition, cash flows or results of operations of the organization and which took place between the reporting date and the date of signing the financial statements for each year. The event after the reporting date also recognizes the announcement of annual dividends on the results of the joint stock company for the reporting year. Events after the reporting date include: events confirming the existence at the reporting date of the economic conditions in which the organization conducted its activities; events that indicate the occurrence after the reporting date of the economic conditions in which the organization operates. An approximate list of facts of economic activity that can be recognized as events after the reporting date is given in the appendix to Regulation PBU 7/98.
1.2.5. The procedure for drawing up reporting forms
When preparing financial statements, it should be borne in mind that the accounting process in organizations is carried out on the basis of
From the accounting policy adopted by them in accordance with the Accounting Regulations on Accounting Policy of the Organization PBU 1/98, which presupposes property isolation and the continuity of the organization's activities, the sequence of application of accounting policies, as well as the temporal certainty of the facts of economic activity. Accounting policies should also meet the requirements of completeness, prudence, priority of content over form, consistency and rationality. In accordance with the requirements of the Accounting Regulation “Organization's Accounting Statements” (PBU 4/99), offsetting between assets and liabilities, profit and loss items is not allowed in the financial statements, unless such offset is provided for in the relevant accounting provisions. The balance sheet should include numerical indicators in the net estimate, i.e. minus the regulatory values \u200b\u200bthat should be disclosed in the notes to the balance sheet and the income statement. Given this, in the balance sheet data on intangible assets, fixed assets are presented at residual value (with the exception of tangible assets, fixed assets, for which depreciation is not charged in accordance with the established procedure). If an organization that has investments in shares of other organizations quoted on the stock exchange, whose quotations are regularly published, forms at the end of the reporting year a reserve for the depreciation of investments in securities at the expense of the financial results of the organization, in the annual balance sheet the balances of the corresponding financial investments are reflected at market value, if the latter is lower than the value accepted for accounting. In the liability of the balance sheet, the amount of the provision for impairment of investments in securities and recorded in the corresponding account is not separately recorded. In the event that an organization, in accordance with the established procedure, creates reserves for doubtful debts for settlements with other organizations and citizens for products, goods, work and services with the attribution of the amounts of reserves to the financial results of the organization, the accounts receivable for which reserves have been created are shown in the balance sheet in the amount minus the formed reserve. In this case, the amount of
The reserve called and reflected in the accounting is not separately reflected in the liabilities of the balance sheet. When preparing financial statements, the requirements of accounting regulations and other regulatory documents on accounting for disclosure in financial statements of information on changes in accounting policies that have or may have a significant impact on the financial position, cash flow or financial performance of the organization must be met, operations in foreign currency, on inventories, on fixed assets, on income and expenses of an organization, on the consequences of events after the reporting date, on the consequences of conditional facts of economic activity, as well as on the disclosure of any information about assets, capital in the financial statements and the reserves and liabilities of the organization. Such disclosure can be carried out by the organization by including the relevant indicators, tables, breakdowns directly in the financial statements or in an explanatory note. When reflecting data in the financial statements, it should be borne in mind that if, in accordance with regulatory accounting documents, the indicator is subtracted from the relevant indicators (data) when calculating the relevant data (intermediate, final, etc.) or has a negative value, then in the financial statements this indicator is shown in parentheses (uncovered loss, cost of goods, products, works, services sold, loss on sales, interest payable, operating expenses, use of funds of funds (reserves), decrease in capital, allocation of cash, disposal of fixed assets, etc. .). The heading of the forms is completed in the following order
The reporting date or reporting period for which the financial statements were drawn up ("for the year 200_", "for the year 200_") is indicated; requisite "Organization" - the full name of the legal entity is indicated (in accordance with the constituent documents registered in the prescribed manner); the taxpayer identification number (TIN) assigned by the tax authority in the prescribed manner is indicated;
Props "Type of activity" - indicates the type of activity, which is recognized as the main one in accordance with the requirements of regulatory documents approved by the State Committee of the Russian Federation on Statistics; requisite “Form of incorporation / form of ownership” - this line shall indicate the organizational and legal form of organization according to the Classification of organizational and legal forms of business entities (KOPF). At the same time, the code for KOPF is indicated in the left half of the column, and the property code according to the Classifier of Forms of Ownership (KOF) in the right half; props “Unit of measurement” - the format for the presentation of numerical indicators is indicated: thousand rubles. - code 384 according to OKEY; million rubles - code 385 for OKEI; "Address" variable - the full postal address of the organization is indicated; requisite “Date of approval” - the established date for the annual financial statements is indicated; variable "Date of sending / acceptance" - the specific date of mailing of the financial statements or the date of its actual transfer according to their affiliation is indicated; requisite "State property management body" - organizations that have federal property and are obliged, in accordance with the Decree of the Government of the Russian Federation of 03.07.1998, No. 696 "On the organization of accounting for federal property", to receive certificates of entry into the register of the specified property, must indicate the number in the register federal (state) property (“Number in the register of federal (state) property”) and the name of the body entrusted with coordinating and regulating the activities of the state or municipal unitary enterprise and to which the financial statements are sent. Financial statements are prepared and presented in thousands of rubles without decimal places. Organizations with significant turnover of goods, liabilities, etc. are allowed to submit financial statements in millions of rubles without decimal places.
Small businesses, public organizations (associations) and other organizations with a small amount of assets recorded in the balance sheet, and in order to avoid difficulties in using the data of financial statements, can compile and submit annual financial statements in whole rubles. Financial statements must be drawn up in Russian in the currency of the Russian Federation. An organization subject to liquidation or reorganization, changing its state form of ownership to another in the reporting year, submits a report on standard forms of annual financial statements for the period from the beginning of the year to the moment of liquidation (reorganization). The newly created organization shows funds in the statements (at the cost of acquisition, receipt ) and their sources from the day of its state registration in the prescribed manner until December 31, inclusive of the reporting year, and the organization created after October 1 of the reporting year, including October 1, through December 31 of the next year inclusive (this procedure does not apply to organizations created on the base of liquidated (reorganized) organizations, their structural divisions). An organization that transfers and acquires (receives) new divisions not as of January 1, in an explanatory note provides an explanation of the discrepancy between the balance sheet data at the beginning and end of the reporting year. PBU 7/98 “Events after the reporting date” and PBU 8/01 “Contingencies of economic activity” establish the rules for reflecting these events and facts in the financial statements. In this case, events after the reporting date and contingent facts are reflected in accounting, depending on their materiality (significance). The materiality of facts and events is determined by the organization independently based on the requirements of the accounting regulations. The consequences of events after the reporting date and conditional facts are evaluated in monetary terms in a special calculation and shown in the financial statements either by reflecting in synthetic and analytical accounting the final turns of the reporting period before the approval of the annual financial statements, or by disclosing the relevant information in the notes to the balance sheet and report about financial results. In this case, the conditional profit as financial
The nasal result of a conditional fact is disclosed only in the notes to the balance sheet and the profit and loss statement for the reporting period, and no contingent profit entries are made in the synthetic and analytical accounting of the reporting period. The procedure for calculating and recording in accounting and reporting events after the reporting date and conditional facts is established by a separate accounting provision. In some cases, when the disclosure of information on contingent facts of economic activity may adversely affect the likelihood of the occurrence of these facts, the organization may not disclose information in full, but indicate in the explanations to the income statement only the general nature of the contingent fact and the reason, due to for which more detailed information is not disclosed. Issues regulated by PBU 7/98 “Events after the reporting date” and PBU 8/01 “Contingencies of economic activity” are closely related to PBU 4/99 “Financial statements of the organization”.
1.2.6. Role of the Explanatory Note in Disclosure
The explanatory note to the annual financial statements should contain essential information about the organization, its financial position, comparability of data for the reporting and previous years, methods of assessment and significant articles of the financial statements. The explanatory note should provide: - a brief description of the organization's activities, i.e. provide the main performance indicators, factors that influenced the financial results of the reporting period, as well as the decision based on the results of consideration of the annual financial statements and distribution of the organization's net profit; - analytical indicators characterizing the condition, structure and efficiency of using fixed assets, intangible assets, financial investments, etc .; calculate the profitability of the organization; - assessment of the financial condition of the organization for the short term in terms of financial stability and solvency of the organization;
Assessment of the financial condition for the long term in terms of indicators of the structure of sources of funds, the degree of dependence of the organization on external investors and creditors, to determine the effectiveness of investments, etc .; - an assessment of the business activity of the organization. The explanatory note should report on the facts of non-application of accounting rules in cases where they do not allow to reliably reflect the property status and financial results of the organization's activities with appropriate justification. Otherwise, non-application of accounting rules is considered as an evasion from their implementation and is recognized as a violation of the legislation of the Russian Federation on accounting. In the explanatory note to the financial statements, the organization announces changes in its accounting policies for the next reporting year. This article of the Russian law complies with International Accounting Standard No. 1 "Presentation of Financial Statements" (IAS 1-97). It says that "financial statements should provide information about the financial position, financial performance and cash flow of the company, useful to a wide range of users in making economic decisions." If the report does not have clarity and clarity, it is impossible to make responsible decisions and make judgments on its basis. This should fully apply to the information contained in the Russian financial statements. Standard No. 1 states that financial statements should contain relevant figures for the previous period. This undoubtedly increases the analyticity of reports. “Comparative information should be disclosed in relation to the prior period for all the amounts in the financial statements. Comparative information should be included in the overview and descriptive information when appropriate for the understanding of the financial statements for the current period. ” In order to draw the right conclusions and make the right decision, it is necessary to have not only reports for the current period, but also for past periods, which are not available to any user.
1.2.7. The procedure for signing financial statements
Accounting statements are signed by the head and chief accountant (accountant) of the organization. In organizations where accounting is conducted on a contractual basis by a specialized organization (centralized accounting) or specialist, the accounting statements are signed by the head of the organization, the head of a specialized organization (centralized accounting) or an accounting specialist. In organizations where accounting is carried out by a centralized accounting department, a specialized organization or a specialist accountant, the statements are signed by the head of the organization, centralized accounting department or specialized organization, or by a specialist accountant keeping accounting. PBU 7/98 "Events after the reporting date" introduces a new concept of "date of signing of financial statements" in the accounting regulation system. The date of signing of the financial statements is the date indicated in the financial statements submitted to the addresses specified by the legislation of the Russian Federation when they are signed in the prescribed manner.
1.2.8. Addresses and deadlines for submitting financial statements
Organizations, with the exception of budget ones, submit annual financial statements in accordance with the constituent documents to the founders, members of the organization or owners of its property, as well as to the territorial bodies of state statistics at the place of their registration. State and municipal unitary enterprises submit financial statements to bodies authorized to manage state property. Financial statements are submitted to other executive authorities, banks and other users in accordance with the legislation of the Russian Federation. Organizations, with the exception of budget ones, are required to submit quarterly financial statements within 30 days
At the end of the quarter, and annual - within 90 days after the end of the year, unless otherwise provided by the legislation of the Russian Federation. The submitted annual financial statements must be approved in the manner prescribed by the constituent documents of the organization. Budgetary organizations submit monthly, quarterly and annual financial statements to a higher authority within the time frame established by it. The day the organization submits financial statements is determined by the date of its mailing or by the date of actual transfer of ownership. If the date of presentation of the financial statements falls on a non-working (day off) day, the deadline for submitting the financial statements is the first working day following it.
1.2.9. The procedure for amending the organization's reporting
To ensure the reliability of accounting and financial reporting data, organizations are required to conduct an inventory of property and liabilities, during which their presence, condition and assessment are checked and documented. The inventory is carried out in accordance with the Methodological Guidelines for the Inventory of Property and Financial Liabilities, approved by order of the Ministry of Finance of the Russian Federation dated June 13, 1995 No. 49. In cases where the organization reveals an incorrect reflection of business transactions of the current period before the end of the reporting year, corrections are made by entries in the corresponding accounting accounts in the month of the reporting period when the distortions were identified. If an incorrect reflection of business transactions in the reporting year after its completion is revealed, but for which the annual financial statements have not been approved in the prescribed manner, corrections are made by the entries of December of the year for which the annual financial statements are prepared for approval and submission to the appropriate addresses.
In cases where the organization reveals in the current reporting period the incorrect reflection of business transactions in the accounting accounts in the last year, corrections in the accounting and financial statements for the last reporting year (after the approval of the annual financial statements in the prescribed manner) are not made. Since the entry into force of the Tax Code of the Russian Federation, the organization is responsible for each tax violation, even in those cases when it is identified and corrected by it independently. Mistakes made in accounting lead to incorrect calculation of the tax base or the amount of tax itself. As a result, the organization fills out the tax declaration incorrectly and the tax amount is not transferred to the budget in full. When a taxpayer identifies an error on his own, he must amend the tax return. In this case, the organization will have to pay the unpaid amount of tax, pay penalties for late payment of tax and, in some cases, a fine for violating the rules for preparing a tax return.
1.2.10. Publicity of financial statements
Joint-stock companies of open type, banks and other credit organizations, insurance organizations, stock exchanges, investment and other funds created at the expense of private, public and state funds (contributions) are required to publish annual financial statements no later than June 1 of the year following the reporting one. The Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, their representative offices and branches on the territory of the constituent entities of the Russian Federation, the Federal Compulsory Medical Insurance Fund and territorial compulsory medical insurance funds, as well as in cases established by federal laws, other organizations are required to publish annual financial statements. The publicity of financial statements consists in publishing them in newspapers and magazines accessible to users of financial statements, or distributing brochures, booklets and other publications containing bookkeeping among them
Terek reporting, as well as its transfer to the territorial bodies of state statistics at the place of registration of the organization for provision to interested users. In this regard, the Ministry of Finance of the Russian Federation approved the procedure for publishing financial statements (order of the Ministry of Finance of the Russian Federation of November 26, 1996, No. 101). In particular, this order states that joint-stock companies may publish an abbreviated form of the balance sheet and income statement. The balance sheet can only be represented by totals for the sections provided for in paragraph 20 of PBU 4/99, if the following conditions exist simultaneously; 1) the balance sheet currency (at the end of the reporting period) should not exceed 400,000-fold (400,000 minimum wages) the minimum wage; 2) revenue (net) from the sale of goods, products, works, services for the reporting period should not exceed 1,000,000-fold (1,000,000 minimum wages) the minimum wage. If the organization has more of these indicators, then the balance sheet is published in full. As for Form No. 2 “Profit and Loss Statement”, when it is published, it is possible not to include the subtotals provided for in clause 23 of PBU 4/99, and also not to cite the report items for which the company does not have indicators. The profit and loss statement form in an abridged version should contain the following indicators: revenue from the sale of goods, products, works, services, cost of goods sold, products, works, services, gross profit, commercial, administrative expenses, distribution of profits or loss coverage. Information on audit results should be published along with accounting reports. The publication should contain the opinion (assessment) of an independent auditor or an audit firm on the reliability of financial statements. If the financial statements are published in full, then the publication should include the full text of the final part of the audit report.
1.2.11- Audit of financial statements
In the cases provided for by the legislation of the Russian Federation, the financial statements are subject to mandatory audit. The final part of the auditor's report should be attached to the accounts. Federal Law "On Auditing" No. 119-FZ dated 07.08.2001 established the criteria for organizations whose financial statements are subject to mandatory annual audit
Organizational and legal form - open joint stock company; - credit organizations; insurance organizations or mutual insurance companies; commodity or stock exchange; investment funds, state non-budgetary funds, the source of which is the compulsory calculations provided by the legislation of the Russian Federation, made by individuals and legal entities; funds, the sources of which are the voluntary contributions of individuals and legal entities; - if the amount of proceeds of an organization or an individual entrepreneur from the sale of products (performance of work, provision of services) for one year exceeds the minimum wage established by the legislation of the Russian Federation or the amount of balance sheet assets exceeds by 200,000 times at the end of the reporting year Federation minimum wage; - organizations that are a state unitary enterprise, municipal unitary enterprise based on the right of economic management, if the financial performance of its activities meet the established criteria. For municipal unitary enterprises by the law of a constituent entity of the Russian Federation financial indicators may be lowered. The final part of the auditor's report issued on the basis of the results of the statutory audit of financial statements should be attached to these statements.
Section 1 "Non-current assets" of the balance sheet presents the following groups of items: - intangible assets; - fixed assets; - Construction in progress; - profitable investments in material values; - long-term financial investments; - Other noncurrent assets. Intangible assets are shown in the balance sheet at their residual value, i.e. the actual costs of purchasing, manufacturing and the costs of bringing them to the state in which they are suitable for use for the planned purposes, minus the accrued depreciation. Intangible assets used in the manufacture of products, performance of work, provision of services during the period of economic activity exceeding 12 months, and bringing economic benefits (income), include objects of intellectual property: - the exclusive right of the patent holder to an invention, industrial design, utility model; - exclusive copyright to computer programs, databases; - the exclusive right of the owner to the trademark and service mark, appellation of origin. In addition, intangible assets may include organizational expenses (expenses associated with the formation of a legal entity recognized in accordance with the constituent documents as a contribution of the participants (founders) to the authorized (joint-stock) capital), as well as the business reputation of the organization. An explanation of the composition of intangible assets is given in the appendix to the balance sheet (form No. 5). The balance sheet shows data on fixed assets, both active and in conservation or in stock, at residual value.
This subsection also reflects capital investments for land improvement (reclamation, drainage, irrigation and other works) and in leased buildings, structures, equipment and other objects related to fixed assets. In the amount of actual acquisition costs, land plots, environmental objects acquired by the organization as property in accordance with the law are shown.
A breakdown of the movement of fixed assets during the reporting year, as well as their composition at the end of the year, is given in the appendix to the balance sheet (form No. 5). The item "Construction in progress" shows the costs of construction and installation work carried out both by economic and contractual methods, the acquisition of buildings, equipment, vehicles, tools, inventory, durable material objects, other capital work and costs (design and survey, geological exploration and drilling works, expenses for the allotment of land plots and resettlement in connection with the construction, for the training of personnel for newly built organizations, etc.). This article reflects the cost of capital construction objects that are in temporary operation before they are put into permanent operation, as well as the cost of real estate objects for which there are no documents confirming the state registration of real estate objects in cases established by law. Incomplete capital investments are reflected in the balance sheet at actual costs for the developer (investor). In addition, this item reflects the costs of forming the main herd, the cost of equipment requiring installation and intended for installation. The decoding of information on the movement of funds under the item "Construction in progress" is given in form No. 5. Under the item "Profitable investments in tangible assets", income investments in values \u200b\u200bprovided under a lease (rental) agreement are reflected for a fee for temporary possession and use in order to obtain income. Long-term financial investments are long-term investments of an organization (for a period of more than a year) in profitable assets (securities) of other organizations, authorized (collateral)
Capital of other organizations established on the territory of the Russian Federation or abroad, government securities, as well as loans provided by the organization to other organizations. Financial investments are taken into account in the amount of actual costs for the investor. For debt securities, the difference between the amount of actual acquisition costs and the nominal value during the period of their circulation is allowed evenly, as income accrued on them, be charged to the financial results of the organization. Objects of financial investments (except loans) that are not paid in full are shown in the asset of the balance sheet in the total amount of the actual costs of their acquisition under the agreement with the allocation of the outstanding amount under the item of creditors in the liability of the balance sheet in cases when the rights to the object were transferred to the investor. In other cases, the amounts contributed to the account of financial investment objects to be acquired are shown in the asset of the balance sheet under the item of debtors. Investments of an organization in shares of other organizations that are quoted on the stock exchange or special auctions, the quotes of which are regularly published, are reflected at the end of the year at market value, if the latter is lower than the value accepted for accounting. This difference is written off to the reserve formed at the end of the year for the depreciation of investments in securities, created from the financial results of the organization. The item "Other non-current assets" reflects funds and investments of a long-term nature that are not reflected in section I of the balance sheet. Section 2 "Current assets" of the balance sheet is represented by the following groups of items: - reserves; - value added tax on acquired values; - accounts receivable (payments for which are expected more than 12 months after the reporting date); - accounts receivable (payments for which are expected within 12 months after the reporting date); - short-term financial investments; - cash; - Other current assets.
The items of the "Inventories" group show the balances of stocks of raw materials, basic and auxiliary materials, fuel, purchased semi-finished products and components, spare parts, containers and other material values. In accordance with RAS 5/01, inventories are accepted for accounting at actual cost. The actual cost of inventories purchased for a fee is the amount of the organization's actual acquisition costs, excluding value added tax and other recoverable taxes (except as provided by the legislation of the Russian Federation). When inventory is released (except for goods recorded at the selling price) into production and other disposal, their valuation is carried out in one of the following ways: - at the cost of each unit; - at the average cost; - at the cost of the first in time to acquire inventories (FIFO method); - at the cost of the most recent acquisition of inventories (LIFO method). Under the article "Costs in work in progress (distribution costs)" shows the costs of work in progress and work in progress (services), which are recorded on the relevant accounts of accounting for production costs. Organizations (construction, scientific, geological, etc.) that carry out settlements with customers in the current year in accordance with the concluded agreements for completed work stages that have independent significance, reflect on this line the stages accepted in the established manner by the customer at a contractual cost. In this case, the customer reflects the cost of work in accounting at the end of all stages. As part of selling expenses, the amount of distribution costs attributable to the balance of unsold goods in organizations operating in accordance with the constituent documents in trade, supply and other intermediary activities is taken into account. If organizations do not recognize the recorded distribution costs in the cost of goods (services) sold in full in the reporting period as
As expenses for ordinary activities, the sum of distribution costs (in terms of transportation costs) attributable to the balance of unsold goods and raw materials is reflected in the balance sheet under “Costs in work in progress (distribution costs)”. The item “Finished goods and goods for resale” shows the actual production cost of the remainder of the finished goods, tested and accepted, completed with all parts in accordance with the terms of contracts with customers and the corresponding specifications and standards. Products that do not meet the specified requirements and work that has not been handed over are considered incomplete and are shown as part of work in progress. This article shows the cost of the remainder of the goods purchased by an organization operating in trade and public catering. At the same time, the organization of catering under this article also reflects the remains of raw materials in kitchens and pantries, the remains of goods in buffets. Organizations operating in the industry show items purchased specifically for sale under this line. The article “Shipped goods” reflects data on the actual cost of shipped products (goods) if the contract stipulates a different from the general order moment of transfer of ownership, use and disposal of it and the risk of accidental death from the organization to the buyer, customer. The article “Deferred expenses” includes the amounts of expenses incurred in the reporting year, but which should be attributed to the costs of production of goods (works, services) in the following reporting periods. The item "Value added tax on acquired assets" reflects the amount of value added tax on acquired material resources, low-value and wearing out items, fixed assets, intangible assets and other valuables, works and services, subject to attribution in the prescribed manner in the following reporting periods in reduction of tax amounts for transfer to the budget or reduction of the corresponding sources of their discovery. Two subsections of section 2 of the balance sheet reflect the organization's settlements with other organizations and persons and are given in detail
In a chisel form: balances on accounts of analytical accounting for which there is a debit balance, - in an asset for which there is a credit balance, - in liabilities. For the group of articles “Accounts receivable for which payments are expected more than 12 months after the reporting date” and “Accounts receivable for which payments are expected within 12 months after the reporting date”, data on receivables are shown separately. An explanation of the status of accounts receivable is given in the annex to the balance sheet in form No. 5. The item "Buyers and customers" shows, at contractual or estimated cost, goods shipped, work handed over and services rendered to customers (buyers) until payments for them are received on the settlement ( or another) the account of the organization or set-off of mutual claims, and under the article “Promissory notes receivable” the debt of buyers, customers and other debtors for shipped products (goods), work performed and services rendered, provided by received promissory notes is shown. The assets and liabilities of the balance sheet under the items “Debt of subsidiaries (dependent) companies” and “Debt to subsidiaries (dependent) companies” shall reflect data on current operations with subsidiaries (dependent) companies. The article “Debt of participants (founders) on contributions to the authorized capital” shows the debt of the founders (participants) of the organization on contributions to the charter (joint-stock) capital of the organization. The item "Advances issued" shows the amount of advances paid to other organizations for forthcoming settlements in accordance with the concluded agreements. According to the article “Other debtors” of the indicated groups of articles, debt is shown for financial and tax authorities, including overpayments on taxes, fees and other payments to the budget; indebtedness of employees of the organization for loans and borrowings granted to them at the expense of this organization or a bank loan, for compensation for material damage to the organization; debt for accountable persons; arrears in settlements with suppliers for shortages of inventory items discovered during acceptance; fines, penalties and forfeits recognized by the debtor or for which decisions of the court (arbitration court) on their recovery have been received.
The subsection “Short-term financial investments” shows short-term (for a period of not more than one year) loans provided to organizations, reflects own shares purchased from auctioneers, and the organization’s investments in securities of other organizations, government securities, etc. The section “Cash” includes the articles “Cash desk”, “Settlement accounts”, “Currency accounts”, which reflect cash balances at the cash desk, on settlement and foreign currency accounts with credit organizations. Section 3 of the balance sheet “Capital and reserves” combines the organization’s own sources and consists of the following articles: - authorized capital; - Extra capital; - Reserve capital; - fund of the social sphere; - targeted funding and receipts; - retained earnings of previous years; - uncovered loss of previous years; - retained earnings of the reporting year; - uncovered loss of the reporting year. The article "Authorized capital" shows the amount of the authorized or contributed capital in accordance with the constituent documents. An increase or decrease in the authorized (share) capital, made in accordance with a certain procedure, is reflected in accounting and reporting after amendments to the constituent documents. The item "Additional capital" reflects the share premium of the joint-stock company, the increase in the value of property with the revaluation of non-current assets, a part of retained earnings in the amount allocated for capital investments. The item "Reserve capital" includes the amount of the balances of the reserve and other similar funds created in accordance with the legislation of the Russian Federation or if the creation of funds is provided for by the constituent documents or the accounting policy of the organization. According to the article “Social Sphere Fund”, the balance of the social sphere fund generated by the organization in the case of the availability of housing facilities and external improvement facilities (received free of charge, including under a donation contract acquired by the organization) is shown that was not previously accounted for
Tennyh as part of the authorized (joint) capital, authorized capital, additional capital. A breakdown of the composition and movement of the fund during the reporting year is given in the form No. 3 “Report on changes in capital”. Under the item "Earmarked funding and receipts," non-profit organizations reflect the balances of received and unused earmarked funds as entrance membership and voluntary contributions, as well as other sources. Data on the balances of earmarked funding at the beginning and end of the reporting period by their types and sources, on their movement during the reporting period by non-profit organizations are given in the Report on the targeted use of funds received (form No. 6). The article "Retained earnings of previous years" shows the profit remaining at the disposal of the organization based on the results of work for the previous reporting period. The article “Retained earnings of the reporting year” shows the retained earnings of the reporting period in the amount of net, calculated as the difference between the revealed financial result for the reporting period and the amount of taxes and other mandatory payments for the reporting period in accordance with the legislation of the Russian Federation. The article “Uncovered loss of previous years” shows the balance of uncovered loss received as a result of the organization’s activities for the periods preceding the reporting one. The item "Uncovered loss of the reporting year" shows the loss of the organization for the reporting period as the difference between the revealed financial result for the reporting period and the amount of taxes and other similar obligatory payments due. Uncovered losses are reflected in the balance sheet as negative indicators and reduce the amount of equity capital of the organization. When considering the results of the organization’s activities for the reporting year, a decision must be made on the sources of loss coverage. The retained earnings of previous years, the reserve fund, and additional capital (except for the amounts of revaluation of property) may be used for these purposes. Section 4 “Long-term liabilities” is represented by the following items: - bank loans due to be repaid more than 12 months after the reporting date;
Loans maturing more than 12 months after the reporting date; - other long-term liabilities. Section 5 “Short-term liabilities” combines the amounts of accounts payable due within 12 months after the reporting date: bank loans due within 12 months after the reporting date; loans due within 12 months after the reporting date; accounts payable, including: - suppliers and contractors; - promissory notes payable; - debts to subsidiaries and dependent companies; - debt to the staff of the organization; - debt to state extra-budgetary funds; - debt to the budget; - received advances; - other creditors; debt to participants (founders) on the payment of income; revenue of the future periods; reserves for future expenses; other short-term liabilities. Different types of debt are presented under the group of accounts payable: under the article “Suppliers and contractors” the amount of debt to suppliers and contractors for received material values, work performed and services rendered is shown; under the article “Promissory notes payable”, the amount of debt to suppliers, contractors and other creditors to which the organization issued to ensure their supplies, work and services of the bill is shown; the item "Debts to the personnel of the organization" shows the accrued, but not yet paid amounts of wages, and the item "Debts to state extra-budgetary funds" reflects the amount of arrears on contributions to state social insurance, pensions and medical insurance of employees of the organization;
The item "Debt to the budget" shows the debt of the organization for all types of taxes, fees to the budget; the item "Advances received" shows the amount of advances received from third-party organizations for forthcoming settlements under concluded contracts; under the item “Other creditors” the debt of the organization is shown for settlements that are not reflected in other articles. Deciphering the status and movement of accounts payable is given in the annex to the balance sheet (form No. 5). The article "Debt to participants (founders) for the payment of income" shows the amount of debt of the organization for accrued but not paid dividends, interest on shares, bonds. Under the article “deferred income” shows the income received in the reporting period, but related to the following reporting periods. The article “Reserves for future expenses” shows the balances of reserves formed by the organization in accordance with the regulatory accounting system, such as reserves for vacation pay, repair of fixed assets, preparatory work in connection with the seasonality of production, etc. In addition, the balance sheet in the certificate on the availability of valuables recorded on off-balance sheet accounts, information is provided on the leased fixed assets, on inventory taken for safekeeping, on goods accepted for commission, etc.
Consider the procedure for the formation of indicators of form No. 2 “Profit and loss statement”. The classification of income and expenses is established in the Accounting Regulations “Income of the Organization” (P BU 9/99) and “Expenses of the Organization” (PBU 10/99). PBU 9/99 defines the income of the organization as a whole, their types, as well as revenue. The regulation determines the procedure for recognizing income in accounting and the procedure for disclosing information about the income of an organization in the financial statements.
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) the repayment of obligations, leading to an increase in the capital of this organization, with the exception of contributions from participants (property owners). For the purposes of the Regulation, income from other legal entities and individuals is not recognized as income from the organization: - the amount of value added tax, excise taxes, sales tax, export duties and other similar mandatory payments; - under commission agreements, agency agreements and other similar agreements in favor of the principal, principal, etc .;
- Workshop - Dontsova L.V., Nikiforova N.A. - 2004
Presented in the workshop examples, exercises and tasks are intended for in-depth study of the methodology for analyzing financial statements of business entities. The workshop contains a set of tasks covering the main theoretical and applied aspects of the analysis of standard reporting forms: Form No. 1 “Balance Sheet”, Form No. 2 “Profit and Loss Statement”, Form No. 3 “Report on changes in capital”, Form No. 4 “Report cash flow ”, form No. 5“ Appendix to the balance sheet ”.
The publication is addressed to teachers and students of economic universities, employees of accounting services, as well as students in the training and certification system for professional accountants, financial analysts and auditors.
Dontsova L.V., Nikiforova N.A.
Analysis of financial statements: Workshop.
M .: Publishing house "Delo and Service", 2004. - 144 p.
ISBN 5-8018-0244-4
BBK 65.053
Foreword
Section 1. ANALYSIS OF FORM No. 1 "ACCOUNTING BALANCE"
1.1. A general assessment of the structure of the property of the enterprise and its sources according to the balance sheet.?.
1.2. Analysis of balance sheet liquidity and assessment of the company's solvency
1.3. Assessment of the probability of insolvency (bankruptcy) of an enterprise
1.4. Determination of the nature of the financial stability of the enterprise. Calculation and assessment according to the balance sheet of financial ratios of market stability
1.5. Classification of the financial condition of the enterprise according to the consolidated criteria for assessing the balance sheet
Section 2 ANALYSIS OF FORM № 2 "REPORT ON PROFITS AND LOSSES".
2.1. General assessment of the business activity of the organization. Calculation and analysis of the financial cycle
2.2. Analysis of the level and dynamics of financial results according to reporting data
2.3. Analysis of the influence of factors on profit
2.4. Factor Analysis of Organization Profitability
Section 3 ANALYSIS OF FORM No. 3 "REPORT ON CAPITAL CHANGES".
3.1. Assessment of sources of financing assets
3.2. Analysis of the composition and movement of equity capital. Valuation of net assets
Section 4. ANALYSIS OF FORM No. 4 “REPORT ON THE MOTION OF CASH FLOWS”.
4.1. Analysis of cash flow according to reporting data.
Section 5. ANALYSIS OF FORM No. 5 "SUPPLEMENT TO THE ACCOUNTING BALANCE"
5.1. Analysis of the movement of borrowed funds
5.2. Analysis of receivables and payables
5.3. Analysis of depreciable property.
5.4. Analysis of the movement of funds for financing long-term investments and financial investments
Section 6. FEATURES OF ANALYSIS OF CONSOLIDATED STATEMENTS
6.1. Analysis of the consolidated statements.
Applications
Literature
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Name: Analysis of financial statements.
The textbook substantiates the theoretical, methodological and practical provisions of the modern concept of analysis of financial statements of business entities. On the basis of the latest regulatory documents, the authors describe in detail the methodology for compiling and analyzing Form No. 1 "Balance Sheet", Form No. 2 "Profit and Loss Statement", Form No. 3 "Statement of Capital Changes", Form No. 4 "Statement of Cash Flows ”, Form No. 5“ Appendix to the balance sheet ”, form No. 6“ Report on the intended use of funds received ”by quarters and in general for the reporting period. The material presented is illustrated with an end-to-end digital example.
The publication is addressed to teachers and students of economic universities, employees of accounting services, financial directors, as well as students in the system of training and certification of professional accountants and auditors.
This textbook has been compiled in accordance with the requirements of the State Educational Standard of Higher Professional Education, approved by the Ministry of Education of the Russian Federation on March 17, 2000, in the discipline "Analysis of financial statements".
The purpose of this book is to acquaint the reader with the methodology for analyzing financial statements, which is becoming increasingly important in making management decisions, when rational and logical arguments are required to justify them.
This book is especially recommended for those who study at the faculties of economics, accounting and audit, management, since it describes in detail a wide variety of analytical situations.
TABLE OF CONTENTS
FOREWORD 3
1. FINANCIAL (ACCOUNTING) REPORTING - INFORMATION BASE OF FINANCIAL ANALYSIS 5
1.1. Purpose, basic concepts, objectives of the analysis of financial statements 5
1.2. Concept, composition and procedure for filling out forms of financial (accounting) statements 10
1.2.1. About the volume of financial statements 11
7.2.1. Requirements for the reliability of reporting 13
7.2.3. Financial Statement Users 15
12.4. Reporting period and reporting date 17
1.2.5. The procedure for compiling reporting forms 18
1.2.6. The role of the explanatory note in the disclosure of information 23
12.7. The procedure for signing financial statements 25
1.2.8. Addresses and timing of financial statements 25
12.9. The procedure for amending the reporting of an organization 26
1.2.10. Publicity of financial statements 27
1.2.11. Financial statement audit 29
1.3. Content of financial statements 30
1.3.1. The content of the balance sheet 30
1.32. Income statement 39
1.3.3. Contents of the statement of changes in equity 49
1.3.4. Content of the statement of cash flows 51
1.3.5. Contents of the appendix to the balance sheet 53
1.4. Financial Statement Analysis Flow 56
1.5. Impact of inflation on financial statements 59
1.5.1. Reporting data comparability 59
1.5.2. Inflation and financial statements 60
Chapter 1 Review Questions 71
2. METHODOLOGICAL BASIS OF FINANCIAL ANALYSIS 72
Checklist for chapter 2 86
3. ANALYSIS OF FORM No. 1 "ACCOUNTING BALANCE" 87
3.1. General assessment of the structure of the property of the organization and its sources according to the balance sheet 87
3.2. The results of the overall assessment of the structure of assets and their sources filed balance 94
3.3. Analysis of balance sheet liquidity 97
3.4. Calculation and assessment of financial solvency ratios 102
3.5. Criteria for assessing the insolvency (bankruptcy) of organizations 107
3.6. Determination of the nature of the financial stability of the organization, calculation and assessment of financial ratios of market stability according to the reporting data 125
3.6.1. Analysis of financial stability indicators 125
3.6.2. Analysis of the adequacy of funding sources for stockpiling 128
3.7. Classification of the financial condition of the organization according to the consolidated criteria for assessing the balance sheet 131
3.8. Analysis of indicators of intra-annual dynamics 137
3.9. General assessment of the business activity of the organization. Financial Cycle Calculation and Analysis 148
Security Questions Chapter 3 160
4. ANALYSIS OF FORM No. 2 "REPORT ON PROFITS AND LOSSES" 162
4.1. Analysis of the level and dynamics of financial results according to financial statements 162
4.2. Analysis of costs incurred by the organization 167
4.2.1. The main types and signs of classification of expenses of the organization 167
4.2.2. Cost Analysis by Item 170
4.3. Analysis of the influence of factors on profit 171
4.4. Profit dynamics analysis 175
4.5. Factor analysis of the organization's profitability 178
4.6. Consolidated system of indicators of the organization's profitability 182
4.7. Assessing the Impact of Financial Leverage 189
4.7.1. The essence of financial leverage 189
4.7.2. The relationship between economic profitability and return on equity 191
4.7.3. The calculation of the ratio of financial leverage 194
Control questions for chapter 4 197
5. ANALYSIS OF FORM No. 3 "REPORT ON CHANGES IN CAPITAL" 199
5.1. Sources of asset financing 199
5.2. Assessment of the composition and movement of equity capital 204
5.2.7. Analysis of the composition and movement of equity capital 204
52.2. Calculation and valuation of net assets 206
Security Questions Chapter 5 209
6. ANALYSIS OF FORM No. 4 “REPORT ON CASH FLOWS” 211
6.1. Analysis of cash flows according to financial statements 211
Test questions for chapter 6 220
7. ANALYSIS OF FORM No. 5 "ANNEX TO THE ACCOUNTING BALANCE" 222
7.1. Composition and assessment of the movement of borrowed funds 222
7.2. Analysis of receivables and payables 224
7.2.1. Analysis of accounts receivable 224
7.2.2. Payables Analysis 230
7.3. Analysis of depreciable property 232
7.3.1. Intangible Assets Analysis 232
7.32. Analysis of fixed assets 238
7.4. Analysis of the movement of funds for financing long-term investments and financial investments 247
7.4.1. The essence and differences of the concepts of investment and financial investment 247
7.4.2. Investment Analysis Problems 251
7.4.3. Main indicators of the analysis of profitability of securities 252
7.5. Explanatory Note to the Annual Accounting Report 254
Chapter 7 Test Questions 257
8. DRAWING THE FORECAST BALANCE 259
Security Questions Chapter 8 263
9. FEATURES OF DRAWING UP AND ANALYSIS OF THE CONSOLIDATED REPORTING 264
9.1. The essence and basic concepts of consolidated reporting 264
9.2. Procedures and principles for the preparation and presentation of consolidated financial statements 276
9.3. Primary Consolidation Methods 281
9.4. Subsequent Consolidation 286
9.5. Analysis of Consolidated Statements 288
Control questions for chapter 9 293
10. SPECIFICITY OF SEGMENTAL REPORTING OF THE ORGANIZATION 294
10.1. The essence and purpose of segment reporting 294
10.2. Disclosure of information by reporting segments 297
10.3. Steps for creating segment reporting of an organization 302
Security Questions in Chapter 10 304
APPENDICES 306
1. Balance sheet 306
2. Profit and loss statement 310
3. Statement of changes in equity 312
4. Statement of cash flows 315
5. Appendix to the balance sheet 317
6. Report on the targeted use of funds received 324
7. Dynamics of balance sheet indicators by quarters of the reporting year 326
8. Dynamics of indicators of the profit and loss statement of the organization in the reporting year 328
LITERATURE 330
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Dear Readers!
We offer you a new book on analysis financial reporting enterprises.
The textbook, consisting of 10 chapters, substantiates the theoretical, methodological and practical provisions of the modern concept analysis financial reporting business entities.
Based on the latest regulatory documents, the authors set out in detail the methodology for compiling and analysis form No. 1 " Accounting balance", Form No. 2" Profit and Loss Statement, Form No. 3 "Statement of Changes in Capital", Form No. 4 "Statement of Cash Flows", Form No. 5 "Appendix to accounting balance sheet", Form No. 6" Report on the targeted use of funds received "by quarters and in general for the reporting period.
In the first chapter financial reporting organization is considered from the point of view of the source of information on financial and economic activities and as a basis for financial analysis.
The second chapter is devoted to the methodological foundations analysis financial reporting... It describes the basic techniques and methods financial analysis.
In subsequent chapters, a specific analysis all forms financial (accounting) reporting organizations - from analysis financial state generally until analysis specific articles and sections reporting... Features are also considered analysis consolidated reporting and specifics analysis Segment reporting organizations.
We offer you a fragment from the chapter “ Analysis Form No. 2 “Profit and Loss Statement" ”.
4.1. Analysis of the level and dynamics of financial results according to reporting data
The financial result of the enterprise is expressed in the change in the value of its equity capital for the reporting period. The ability of an enterprise to provide a steady increase in equity can be assessed by a system of indicators of financial results. Summarized the most important indicators of the financial results of the company are presented in the form of No. 2 of the annual and quarterly financial statements.
Indicators of financial results (profit) characterize the absolute efficiency of the enterprise in all areas of its activities: production, sales, supply, financial and investment. They form the basis of the economic development of the enterprise and the strengthening of its financial relations with all participants in the business.
Profit growth creates a financial basis for self-financing, expanded reproduction, solving problems of social and material incentives for personnel. Profit is also the most important source of formation of budget revenues (federal, republican, local) and repayment of the organization's debt obligations to banks, other creditors and investors. Thus, profit indicators are the most important in the system for assessing the performance and business qualities of an enterprise, the degree of its reliability and financial well-being as a partner.
Profit Is a positive financial result of the organization's activities. A negative result is called at a loss .
Profit Loss) - this is the difference between all the organization’s income and all its expenses.
From a philosophical point of view, profit can be defined as follows: “It is a function of time and a reward for patience.”.
The analysis of each component of the profit of the enterprise is not abstract, but quite specific, because it allows the founders and shareholders, the administration to choose the most important directions for enhancing the activities of the organization.
Analysis of the financial results of the organization includes:
- Research of changes in each indicator for the current analyzed period (horizontal analysis, calculation in column 5 of Table 4.1).
- Study of the structure of the relevant indicators and their changes (vertical analysis, calculation in columns 6, 7, 8 of Table 4.1).
- Studying the dynamics of changes in indicators for a number of reporting periods (trend analysis).
- Study of the influence of factors on profit (factor analysis).
During the analysis, the following indicators are calculated:
1. Absolute deviation:
± ΔP \u003d P 1 _ P 0,
where P 0 is the profit of the base period;
P 1 - profit of the reporting period;
Δ P - change in profit.
Table 4.1
Profit analysis
| Name of indicator | Line code | During the reporting period | For the same period last year | Deviation (+, -) | Level in% of revenue in the reporting period | Level in% of revenue in the base period | Level deviation |
| 1 | 2 | 3 | 4 | 5 = 3-4 | 6 | 7 | 8 = 6-7 |
|
Revenue (net) from the sale of goods, works, services (net of VAT, excise taxes and similar obligatory payments (B) |
010 | 106969 | 99017 | +7952 | 100 | 100 | — |
|
Cost of goods, products, works, services sold (С) |
020 | 69744 | 70203 | -459 | 65,2 | 70,9 | -5,7 |
| Including: | |||||||
| finished products | 011 | 88988 | 80504 | +8484 | 83,2 | 81,3 | +1,9 |
| of goods | 012 | 12533 | 14652 | -2119 | 11,7 | 14,8 | -3,1 |
| industrial services | 013 | 5448 | 3861 | +1587 | 5,1 | 3,9 | +1,2 |
| Selling expenses (KR) | 030 | 5562 | 594 | + 4968 | 5,2 | 0,6 | +4,6 |
| Administrative expenses (SD) | 040 | 3102 | 198 | +2904 | 2,9 | 0,2 | +2,7 |
| Profit (loss) from sales (p. 010-020-030-040) (PP) | 050 | 28561 | 28022 | +539 | 26,7 | 28,3 | -1,6 |
| Interest to received (% sex) | 060 | 1610 | 4654 | -3044 | 1,5 | 4,7 | -3,2 |
| Interest payable (% paid) | 070 | 3102 | 4188 | -1086 | 2,9 | 4,2 | -1,3 |
| Income from participation in other organizations (ДрД) | 080 | 4814 | 1064 | +3750 | 4,6 | 1,1 | +3,5 |
| Other operating income (OTH) | 090 | 749 | 600 | +149 | 0,7 | 0,6 | +0,1 |
| Other operating expenses (OOP) | 100 | 11344 | 3584 | +7760 | 10,6 | 3,6 | +7,0 |
| Other non-operating income (IR) | 120 | 1604 | 495 | +1109 | 1,5 | 0,5 | +1,0 |
| Other non-operating expenses (IntR) | 130 | 642 | 1715 | -1073 | 0,6 | 1,7 | -1,1 |
| Profit (loss) before tax (line 050 + 060-070 + 080 + 090-100 + 120-130) (PB) | 140 | 22250 | 25348 | -3098 | 20,8 | 25,6 | -4,8 |
| Income tax (n / a) | 150 | 6675 | 8872 | -2197 | — | — | |
| Profit (loss) from ordinary activities (AML) | 160 | 15575 | 16476 | -901 | 14,6 | 16,6 | -2 |
| Extraordinary income (BH | 170 | — | — | — | — | — | |
| Extraordinary expenses (CR) | 180 | — | — | — | — | — | — |
| Net profit (retained earnings (loss) of the reporting period) (p. 160 + 170-180) (HR) | 190 | 15575 | 16476 | -901 | 14,6 | 16,6 | -2 |
3. The level of each indicator to sales revenue (in%)
Indicators are calculated in the base and reporting periods.
(level of the reporting period - the level of the base period).
5. Factor analysis.
The amount of profit of the organization is influenced by various factors. In fact, these are all factors of the financial and economic activities of the organization. Some of them have a direct impact, and their impact can be fairly accurately determined using factor analysis methods. Others have an indirect effect through some indicators (Fig. 4.1). In this case, the magnitude of the impact can only be determined with a certain degree of probability or not possible at all.
The amount of net profit is influenced by all factors-indicators that determine it:
This is a factor model of additive form.
where P In - gross profit;
P P - profit from sales;
P B - accounting profit (before tax);
P OD - profit from ordinary activities;
P H - net (retained) profit.
Fig. 4.1.
4.2. ANALYSIS OF THE COSTS OF THE ORGANIZATION
4.2.1. The main types and signs of the classification of expenses of the organization
The main factors affecting the profit of an enterprise are, first of all, revenue from the sale of products, goods (works, services) or income from main activities and expenses (cost and others). As for the revenue, its volume is influenced by such indicators as the number of products (goods) sold and the selling price. We will give the calculation of the influence of revenue on the profit of the organization in another paragraph, and now - about costs.
Having only the “Profit and Loss Statement” (f. No. 2), it is possible to analyze the impact of changes in cost of earnings, but it is impossible to assess the influence of factors on changes in costs themselves. For such an analysis, it is necessary to have the data of management accounting and form No. 5. Paragraph 6 of form No. 5 reflects the expenses incurred by the organization in the reporting and last year, grouped by economic elements. Figure 4.2 shows a classification scheme of the composition of costs according to various criteria.
Cost classification attributes
Before proceeding to the analysis of costs, it is necessary to determine the differences in concepts: payments, cost, expenses, costs.
Pay - this is a transfer (cash) or transfer (non-cash settlement) of funds of an organization to another organization or an individual with the complete alienation of these funds.
Cost of production - this is the monetary expenses of the enterprise (for a certain period of time for the manufacture of products at various stages of readiness: in work in progress, in a warehouse of finished products shipped to the buyer in a given period). Distinguish between the total cost of production and the cost of a unit of production. The higher the production costs, the higher the cost. Cost price- these are the costs of simple reproduction, the current costs of a particular manufacturer.
Organization costs a decrease in economic benefits is recognized as a result of the disposal of assets (cash, other property) and (or) the occurrence of liabilities, leading to a decrease in the capital of this organization, with the exception of a decrease in contributions by the decision of participants (property owners).
Expenses - is the value of any resources (material, labor, financial), expressed in monetary terms, used to support the process of expanded reproduction. In contrast to the general concept of "costs" (except for distribution costs), the concept of "costs" in accounting refers primarily not to absorbing objects, but to absorbing resources. The concept of "costs" is broader than the concept of "cost", which is the cost of simple reproduction, the current costs of a particular manufacturer. Costs increase the value of a certain type of asset (for example, work in progress). At the same time, either the value of other assets (for example, inventories) decreases, or the liabilities to be paid increase. Costs are reflected in debit turnovers of the corresponding active accounts: 20 "Main production", 21 "Semi-finished products of own production", 23 "Auxiliary production", 25 "General production costs", 26 "General expenses", 29 "Service industries and farms" and others. The category of costs also includes assets recorded on account 44 "Costs of sale".
Figure 4.2 shows one of the possible options for classifying the costs of the enterprise according to various criteria.
4.2.2. Cost analysis by item
The quality of the cost analysis depends on the quality of the underlying information. A complete cost analysis is not possible from the financial statements. For this, it is necessary to have data from analytical and synthetic accounting. In order to analyze the costs and by type, and by product, and by cost centers, you can compile the appropriate analytical tables.
Using the data of paragraph 6 of form No. 5, we compile table 4.2. In the reporting year, compared with last year, the company's expenses increased by 7413 thousand rubles, or 10.4%. There have been some changes in the composition of all cost elements. Thus, in the reporting year, material costs decreased by 19.3% compared to last year, and their share decreased by 17.5 percentage points. The rest of the cost elements of the organization increased in the reporting year. Amounts of labor costs increased by 7647 thousand rubles. or by 57.5%, and their share increased compared to last year by 7.98 percentage points. Social deductions and depreciation of fixed assets also increased by 66.7% and 57.8%, respectively. A significant growth rate of other costs for the organization (2 times) occurred due to a significant increase in management costs (in particular, general business), as well as other indirect costs.
Table 4.2
Analysis of organization expenses by elements(thousand roubles.)
|
Cost types |
For the previous year |
For the reporting year |
Deviations |
||||
| Amount | Amount in% | Amount | Amount in% | Amount | Ud. weight, % | ||
| 1. Material costs | 46142 | 64,9 | 37239 | 47,49 | -8903 | -17,50 | 80,7 |
| 2. Labor costs | 13295 | 18,73 | 20942 | 26,71 | +7647 | +7,98 | 157,5 |
| 3. Social contributions | 5603 | 7,89 | 9339 | 11,92 | +3736 | +4,06 | 166,7 |
| 4. Depreciation of fixed assets | 4147 | 5,84 | 6542 | 8,34 | +2395 | +2,50 | 157,8 |
| 5. Other costs | 1808 | 2,55 | 4346 | 5,54 | +2538 | +2,99 | 204,4 |
| 70995 | 100 | 78408 | 100 | +7413 | — | 110,4 | |
4.3. Analysis of the influence of factors on profit
The methodology for calculating the influence of factors on profit from ordinary activities includes the following steps (data from table 4.1):
1. Calculation of the influence of the factor “Revenue from sales”.
The calculation of the influence of this factor must be decomposed into two parts. Since the organization’s revenue is a product of the quantity and price of products sold, we first calculate the effect on sales profit of the price at which the product or goods were sold, and then calculate the effect on the profit of changes in the physical mass of the products sold.
When conducting factor analysis, it is necessary to take into account the effect of inflation. Suppose that the prices for products in the reporting period have increased in comparison with the baseline by an average of 19%.
Then the price index 
Consequently, revenue from sales in the reporting period in comparable prices will be equal to:
where B´ - sales proceeds in comparable prices;
In 1 - revenue from the sale of products in the reporting period.
For the analyzed organization, revenue in comparable prices will be:
(thousand roubles.)
Consequently, the proceeds from the sale of products in the reporting year compared to the previous period increased due to an increase in prices by 17079.1 thousand rubles:
The reduction in the number of products sold led to a decrease in revenue in the reporting period by 9127.1 thousand rubles, while the overall increase in revenue (+7952 thousand rubles) resulted from a 19% increase in prices. In this case, the increase in the qualitative factor overlapped the negative influence of the quantitative factor.
To determine the degree of influence of a price change on a change in the amount of profit from a sale, the following calculation must be made:
Thus, the increase in prices for products in the reporting period compared to the previous period by an average of 19% led to an increase in the amount of profit from sales by 4833.4 thousand rubles.
The impact on the amount of profit from sale (TP) changes in the quantity of products sold can be calculated as follows:
where ΔP P (K) - change in profit from sales under the influence of the factor "quantity of products sold";
IN 1 and IN 0 - respectively, revenue from sales in the reporting (1) and base (0) periods;
Δ IN c - indicator (*), change in revenue from sales under the influence of prices;
R 0 p - return on sales in the base period (table. 3.1).
For the analyzed organization:
Thus, the effect turned out to be negative, i.e. as a result of a decrease in the amount of revenue in comparable prices in the reporting period, the amount of profit from sales decreased by 2583 thousand rubles, because in addition to the price of revenue, the quantity of products (goods) sold also affects:
It is carried out as follows:
where US 1 and US 0 - respectively, the cost levels in the reporting and base periods.
Here, when analyzing, you need to be careful, since costs are opposite factors in relation to profits.If we look at table 4.1, we will see that the cost price in the reporting period decreased by 459 thousand rubles, and its level in relation to sales proceeds decreased by 5.7 percentage points. therefore the savings led to an increase in the amount of profit from the sale by 6097 thousand rubles.
For the calculation, a formula similar to the previous one is used:
where UKR 1 and UKR 0 are the levels of commercial settlements in the reporting and base periods, respectively.
Thus, the overspending of commercial expenses in the reporting period and an increase in their level by 4.6% points led to a decrease in the amount of profit from sales by 4920.3 thousand rubles.
where SUR 1 and SUR 0 are the levels of management expenses in the reporting and base periods, respectively.
This means that overruns on administrative expenses in the reporting period compared to the previous one and an increase in their level by 2.7 percentage points reduced the amount of profit by 2888.1 thousand rubles.
Other indicators - factors from other operating and non-operating activities and extraordinary - do not have such a significant impact on profit as factors of the economic sphere. However, their influence on the amount of profit can also be determined. In this case, the balance sheet matching method is used, a factor model of net profit for the reporting period of the additive type.
The influence of the factor is determined by column 5 in table 4.1 (absolute deviations). All indicators must be divided into factors of direct and reverse influence in relation to profit. How much increases (decreases) direct action factor, the profit increases (decreases) by the same amount. The “reverse action” factors (expenses) affect the amount of profit in the opposite way.
Thus, it is possible to generalize the influence of factors affecting the profit from the sale and, therefore, the profit of the reporting period.
Table 4.3
Summary table of the influence of factors on the net profit of the reporting period
| Factors | Amount, thousand rubles |
| 1. The number of products sold (works, services) | -2583,0 |
| 2. Change in prices for products sold | +4833,4 |
| 3. The cost of sales of products, goods, works, services | +6097 |
| 4. Selling expenses | -4920,3 |
| 5. Administrative expenses | -2888,1 |
| 6. Interest receivable | -3044 |
| 7. Interest payable | +1086 |
| +3750 | |
| +149 | |
| -7760 | |
| +1109 | |
| 12. Other non-operating expenses | +1073 |
| 13. Income tax | +2197 |
| The cumulative influence of factors | -901 |
4.4. Profit dynamics analysis
Using interim statements of profit and loss, you can analyze the intra-year dynamics of changes in profit and profitability of the organization.
According to Appendix 8, it is possible to calculate the influence of factors on the change in the organization’s profit (see table 4.4).
According to table 4.4, the following conclusions can be drawn: in the first quarter of the reporting year, the profit of the organization decreased by 28151 thousand rubles. as a result of the negative influence of all factors except prices. The largest decrease in profit was due to a sharp reduction in the number of products sold (by 13201 thousand rubles) and due to an increase of 18.258% in the cost of goods sold (by 9953.8 thousand rubles).
In the second quarter, the trend of profit decline continued, but not so sharply (_3024 thousand rubles). This was mainly influenced by the increase in the levels of production costs (by 3.401%) and selling expenses (by 2.298%), and as a result of these changes, profit decreased by 2271.3 and 1534.6 thousand rubles.
In the third quarter, there was a turning point in the organization's activities towards improvement. For the first time in a year, profit increased by 15744 thousand rubles. This happened mainly due to a decrease in the level of production costs (by 16.151%) and a decrease in the level of administrative expenses of the organization (by 2.876%). Due to the change in these factors, profit increased by 14359.4 and 2556.8 thousand rubles, respectively.
In the IV quarter, the position of the organization strengthened even more, and the increase in profit amounted to 15970 thousand rubles. Due to a decrease in the cost of goods sold by 11.208%, profit increased by 11,988.8 thousand rubles, due to an increase in the number of products sold - by 1836.6 thousand rubles, due to a decrease in the level of administrative expenses, the profit of the organization amounted to 1,613.2 thousand roubles.
Fig. 4.3. Dynamics of profit from sales and factors influencing it
In general, for the reporting year, the organization’s profit growth amounted to + 1.92%, or 539 thousand rubles.
Table 4.4
Intra-annual dynamics of the influence of factors on the profit of the organization(thousand roubles.)
| Indicators | For the first quarter | For the second quarter | For the third quarter | For the fourth quarter | In a year |
| 52370,8 | 63356,7 | 84997,1 | 101875,2 | 89889,9 | |
| 2. Impact of price changes on revenue | 2147,2 | 3421,3 | 3909,9 | 5093,8 | 17079,1 |
| 3. The impact on revenue of changes in the number of products sold | -46646,2 | 8838,7 | 18219,1 | 12968,2 | -9127,1 |
| 4. Effect on profit of changes in the amount of products sold | -13201,0 | -20,9 | -860,2 | 1836,6 | -2583,0 |
| 5. Effect on profit of price changes | 607,7 | -8,1 | -184,6 | 721,4 | 4833,4 |
| 6. The impact on profit changes in the level of cost of goods sold | -9953,8 | -2271,3 | 14359,4 | 11988,8 | 6097,0 |
| 7. The effect on profit of changes in the level of selling expenses | -1079,9 | -1534,6 | -127,4 | -189,9 | -4920,3 |
| 8. The impact on profit of changes in the level of management costs | -4524,0 | 810,9 | 2556,8 | 1613,2 | -2888,1 |
| 9. Change in profit (loss) of the organization for the reporting period | -28151,0 | -3024,0 | +15744,0 | +15970,0 | +539,0 |
* To calculate revenue in comparable prices, we used the average consumer price indices for the quarters of 200__: I quarter - 1.041, II quarter - 1.054, III quarter - 1.046, IV quarter - 1.05, on average for the reporting year - 1.19.
Figure 4.4 clearly reflects the change in the main indicators of the profit (loss) of the organization.
Fig. 4.4
4.5. Factor Analysis of Organization Profitability
The third component of the concept of "performance" are indicators of profitability or profitability.
According to the “Profit and Loss Statement" (f. No. 2), you can analyze the dynamics of profitability of sales, net profitability of the reporting period, as well as the influence of factors on the change in these indicators.
R P) is the ratio of the amount of profit from sales to the volume of products sold:From this factor model, it follows that the profitability of sales is influenced by the same factors that affect the profit from the sale. To determine how each factor affected the profitability of sales, the following calculations should be performed.
1. The effect of changes in sales proceeds on R P:
where B 1 and B 0 - reporting and basic revenue;
With 1 and With 0 - reporting and basic cost;
КР 1 and КР 0 - reporting and basic business expenses;
SD 1 and SD 0 - management expenses in the reporting and base periods.
2. The impact of changes in cost of sales on R P:
R P:
R P:
The cumulative influence of factors is:
The profitability of sales of the reporting period compared with the profitability of the past period decreased by 1.6% (table. 4.1).
The net profitability of the organization in the reporting period is calculated as the ratio of the amount of net profit of the reporting period to sales revenue:
and therefore on this profitability ( R H) factors influencing the net profit of the reporting period influence.
The net profitability of the reporting period (R H) is influenced by (except for the above) changes in the levels of all indicators of factors:
Thus, the increase in the profitability of the reporting period by 1.5% of points was mainly due to the decrease in the level of profitability of sales and the level of interest relative to receipt, as well as due to the relative cost overruns of other operating expenses.
Analysis of the dynamics of profitability
Analysis of the dynamics of profitability of the organization is also carried out on the basis of the calculated indicators of Appendix 8.
Fig. 4.5.
The influence of factors on the change in profitability is calculated using the chain substitution method. Table 4.5 shows the calculations of the influence of factors on the profitability of sales and the net profitability of the organization for each quarter of the reporting year and in general for the analyzed period. The organization’s activities were unprofitable in the first and second quarters of the reporting year, and profitable in the third and fourth quarters.
Table 4.5
Dynamics of the influence of factors on the profitability of sales of the organization
|
Factors Affecting Profitability |
Calculation of the influence of factors |
||||
| 1st quarter | 2 quarter | 3 quarter | 4th quarter | Overall for the year | |
| 1. Sales revenue | -58,523 | +18,403 | +26,065 | -42,699 | +5,330 |
| 2. Cost price | +39,613 | -19,770 | -6,887 | +24,052 | +0,429 |
| 3. Selling expenses | -1,491 | -2,772 | -1,358 | +23,369 | -4,644 |
| 4. Administrative expenses | -8,135 | -0,346 | +1,063 | +7,817 | -2,715 |
| 5. Profitability (loss) of sales | -28,537 | -4,485 | 18,884 | 12,538 | -1,600 |
| 6. Interest receivable | -4,308 | -0,246 | +0,156 | +1,203 | -3,195 |
| 7. Interest payable | -2,706 | +3,380 | +1,186 | -0,531 | +1,330 |
| 8. Income from participation in other organizations | -0,895 | -0,096 | -0,052 | +4,469 | +3,426 |
| 9. Other operating income | -0,567 | +0,062 | +0,130 | +0,470 | +0,094 |
| 10. Other operating expenses | -3,347 | -0,624 | -1,594 | -1,420 | -6,985 |
| 11. Other non-operating income | -0,401 | -0,065 | +0,947 | +0,518 | +1,000 |
| 12. Other non-operating expenses | -1,362 | +1,467 | -1,460 | +2,487 | +1,132 |
| 13. Income tax | +8,138 | +0,227 | -0,359 | -5,286 | +2,720 |
| 14. Extraordinary income | — | — | — | — | — |
| 15. Extraordinary expenses | — | — | — | — | |
| 16. Net profitability (loss ratio) | -33,984 | -0,380 | 17,838 | 14,447 | -2,079 |
4.6. Consolidated system of indicators of the organization's profitability
In addition to the analyzed profitability ratios, they distinguish between the profitability of all capital, equity, production assets, financial investments, and permanent assets (table. 4.6).
It should be noted that in countries with developed market relations, information on “normal” values \u200b\u200bof profitability indicators is usually published annually by the chamber of commerce, industry associations or the government. Comparison of their indicators with their permissible values \u200b\u200ballows us to draw a conclusion about the state of the financial position of the enterprise. In Russia, this practice is still absent, so the only basis for comparison is information on the value of indicators in previous years.
Gross margin ( R 6) reflects the amount of gross profit in each ruble of sold products (works, services). In foreign practice, this indicator is called marginal income (commercial margin).
Of particular interest for an external assessment of the performance of the organization's financial and economic activities is the analysis of not such traditional indicators of profitability as cost-benefit ( R 7), which shows how much profit from the sale falls on 1 ruble of costs. More informative is the analysis of return on assets ( R 4) and return on equity ( R 5).
Open table 4.6 "Indicators characterizing profitability (profitability)" \u003e\u003e\u003e
To evaluate the results of the organization as a whole and analyze its strengths and weaknesses, it is necessary to synthesize indicators, and in such a way as to identify causal relationships that affect the financial situation and its components.
One of the synthetic indicators of the economic activity of the organization as a whole is economic profitability (indicator R 4 in table 4.6), it is also commonly called return on assets. This is the most general indicator that answers the question of how much profit an organization receives per ruble of its property. In particular, the size of dividends on shares in joint-stock companies depends on its level.
Return on Assets ( R 4) the result of the current activity of the analyzed period (profit) is compared with the fixed and circulating assets (assets) available to the organization. Using the same assets, the organization will profit in subsequent periods of activity. Profit is mainly (almost 98%) from the sale of products (works, services). Sales revenue is an indicator directly related to the value of assets: it is made up of the natural volume and sale prices, and the natural volume of production and sale is determined by the value of the property.
If you transform the return on assets formula by entering the multiplier
then it will take the following form:
Thus, we come to the well-known formula developed in the firm "DuPont de Nemours". This Dupont formula allows you to determine which factors have the greatest impact on economic profitability.
We can say that the return on assets is an indicator derived from the proceeds.
The return on assets can increase with a constant return on sales and an increase in sales that outstrips the increase in the value of assets, i.e., an acceleration of asset turnover (resource efficiency). And, on the contrary, with the same resource output, the return on assets can also grow due to the growth of accounting (before tax) profitability.
Does it matter for evaluating the financial and economic activities of the organization, due to what factors does the return on assets increase or decrease? Of course it does. Because different companies have different opportunities to improve profitability of sales and increase sales.
Profitability of sales can be increased by increasing prices or reducing costs. However, these methods are temporary and not sufficiently reliable in the current conditions. The most consistent policy of the organization, which meets the goals of strengthening the financial condition, is to increase the production and sale of those products (works, services), the need for which is determined by improving the market conditions.
The theory of financial analysis contains an assessment of the turnover and profitability of assets by its individual components: the turnover and profitability of working capital, funds in calculations, own and borrowed sources of funds. However, in our opinion, these indicators themselves are uninformative. Purely arithmetically, as a result of a decrease in the denominators in calculating these indicators compared to the denominator of the rate of return or turnover of all assets, we have a higher return and turnover of individual elements of capital.
When analyzing economic profitability, of course, it is necessary to take into account the role of its individual elements. But the dependence, in our opinion, is advisable to build not through the turnover of elements, but through the assessment of the capital structure in conjunction with the dynamics of its turnover and profitability. From the formula R 4 the possible ways to increase economic profitability are clearly visible - the ways to increase the profitability of capital.
Return on equity indicator (R 5) allows you to establish the relationship between the amount of invested own resources and the amount of profit received from their use (Figure 4.6).
It should be noted that the industry-specific factors are inherent in the factors presented in this diagram, both in terms of the level of values \u200b\u200band the trend of change, which should not be forgotten when conducting the analysis. So, the resource efficiency indicator (d 1) may have a relatively low value with a high capital intensity. Return on sales indicator (R 1) it will be high. Relatively low value of the financial independence ratio (U 3) can only be in organizations with a stable and predictable cash flow for their products (work, service). The same applies to organizational
