FINANCIAL RESULTS AS THE ECONOMIC CATEGORY AND THE FEATURES OF DISPLAYING THEIR IN THE ACCOUNTING AND REPORTING OF THE ENTERPRISE

Abstract

The article deals with the essence of financial results of the enterprise activity, defines their place in the accounting and reporting of economic entities. The problems of information support of the process of financial results management are highlighted and generalized. The problems of internal reporting formation in modern business conditions are considered, the information requirements of users to internal reporting are defined, the approach to its formation is proposed.

Understanding the essence of the category «financial result» - one of the main prerequisites for the formation of appropriate areas of its accounting, analysis and control, as well as the ability to exercise managerial influence on its individual components in order to improve the efficiency of the enterprise. The assessment of the legal and regulatory support indicates that the term «financial results» is not defined in detail in the legislation of Ukraine.

Thus, national R(S) of Accounting 1 «General Financial Reporting Requirements» defines the economic content of the categories «profit» and «loss». The concepts of «financial result» and «profit» are not identical, since the category «financial result» is broader in its meaning. The financial results reflect the entire economic activity of the enterprise, characterize the quantitative and qualitative indicators of the performance of the enterprise. Profit or loss is the result of this activity. The positive value of the financial result (profit) is an important indicator of growth of equity capital, which ensures solvency, financial independence, business reputation and growth of the enterprise value in the market.

The following definition of this economic category is appropriate: financial results is a monetary indicator of the performance of an entity’s economic activity, which is determined by comparing the income received and expenses incurred. Performance indicators can be expressed in the form of profit or loss.

According to the current regulatory documents, information about financial results is disclosed in almost all forms of financial statements of domestic enterprises, but in different interpretations. It is important to report on information sufficient for strategic profit management. For its formation it is necessary to take into account the factors that determine the value of the financial result of each particular enterprise.

Modern trends in the financial statements reinforce attention to the notes to the financial statements, which revealed, refined and supplemented by information provided in the basic reporting forms. An important direction of increasing the level of financial reporting analytics should be the proper construction of its form.

In developing forms of internal (management) reporting, the existing reporting requirements (defined at the legislative level), in practice, act as a limiting factor, since they often do not take into account the features of the enterprise management system and activity strategy. Therefore, it is important to generate sufficient information in the accounts to support strategic revenue management.