Profit and loss statement: structure and content

An important indicator of the business activity of an enterprise or organization is the amount of the financial result of business activities over a period of time. This indicator is reflected in the relevant report, which is called "On Profits and Losses" and is drawn up in accordance with Form No. 2 of accounting.

The information that is included in the profit and loss account is considered as an important element of the financial statements, which explains the information provided. The profit and loss account includes 4 sections. In addition, it contains information on some of their individual species.

The first section reflects the balance of conventional species. It includes indicators of revenues from sales of goods, services provided; Gross profit indicators, parameters of the cost of goods already sold, costs associated with commercial and management activities.

Line 010 shows information about the income that is received from the sale of products, as well as from works or services performed by the enterprise or company. At the same time, in the event that the proceeds from one type of work exceed the amount of more than 5% of the total amount, it is reflected in the report in lines 011-013.

Revenue, which is used as an indicator of the profit and loss account - is the amount of funds that entered the accounts of the company from the use of property. Receivables are also included in receipts . In the event that the amount of funds received does not exceed the indicator of accounts receivable, the profit and loss account reflects revenue in the form of the amount of funds received and the share of accounts receivable, which is not yet paid for at the moment.

The content of the second section shows the amounts of interest due on deposits and interest paid to banks or accrued by banks. Here the positions (lines) reflect all losses and profits received from ordinary activities. These funds are shown in line 160. The profit used in this section is calculated as the difference between the profits received before and after the commission of mandatory tax payments and other budgetary allocations.

The section "Reference data" is issued by the enterprise or organization in the event that they have permanent tax liabilities or when the company pays dividends.

There is also a section in the report in which the profits and losses of the enterprise are deciphered. This applies to non-operating assets and liabilities, the most significant in value. Specifically on the lines:

- 210 - reflects penalties for which court decisions already exist;

- 220 - reflects the balance of previous years, that is, those losses (profits) that were established in the current accounting period;

- 230 - shows the amounts of losses that are caused by improper attitude towards the performance of obligations and which either the enterprise or the company receives or repays;

- 240 - reflects exchange rate differences that are formed in the course of operations for valuation and reassessment of fixed assets of enterprises and organizations and their liabilities, the value of which is presented in foreign currency;

- 250 - demonstrates the amounts that have come under the reduction of the value of wealth or, as a reserve for the depreciation of investment;

- 260 - the line shows the amounts of arrears with the expired date of limitation of actions, as well as those for which the write-off for the financial results of the company's work was made in this period.

As can be seen even from such a superficial analysis, the report under consideration is a very important document not only for conducting accounting activities, but is also an indispensable tool for developing an enterprise development strategy.