Essence, types of income and profit of the enterprise

As a result of its production and economic activities, the company receives income, which can be classified in the following areas:

Income from the sale of marketable products (works, services); Income from the sale of other material values; Income from non-operating operations.

Income from the sale of products (works, services) (Other) is the proceeds from the sale of marketable products (works, services), which is determined by the formula:

Dr = Tsotpi * Qrpi,

where: Tsotpi – the selling price of the i-th product with value added tax, rubles;

Qrpi – quantity of sold products of the i-th name in physical units.

Revenue from the sale of products (works, services) is formed either as it is paid (in non-cash payments – as funds for goods (works, services) are received on accounts in bank institutions, and when settlements in cash – upon receipt of funds to the cash desk), or as goods are shipped (works, services) and the buyer (customer) is presented with settlement documents.

Income from the sale of other tangible assets includes proceeds from the sale of excess property and other assets of the enterprise (intangible assets, securities, etc.).

In addition, enterprises may have financial results from non-operating operations, i.e. from operations not related to the production and sale of products (works, services), fixed assets, inventory, intangible and other assets.

The composition of income from non-operating operations includes:

income received in the territory of the Republic of Belarus and abroad from equity participation in the activities of other enterprises; dividends on shares and income on bonds and other securities owned by the company; income from the lease of property, except in cases where the lease of property is the main economic activity of the organization; fines, penalties, penalties, penalties and other types of sanctions paid, awarded or recognized by the debtor for violation of the terms of economic contracts, as well as income from compensation for damages caused; profit of previous years, revealed in the reporting year; positive differences formed when the National Bank changes the exchange rates of foreign currencies, foreign currency accounts and operations in foreign currency; profit from the purchase (sale) of foreign currency; receipt of debts previously written off as uncollectible; surplus of property identified during the inventory; accounts payable and escrow debts for which the statute of limitations has expired; other income from operations not directly related to the production and sale of products (works, services).

The part of the net income of the enterprise, formed after deducting indirect taxes and current costs from it, is called profit Profit is the main goal of the entrepreneurial activity of the enterprise. It characterizes the economic effect of its work and stimulates it, as it meets the needs for financial resources of the enterprise itself.

The importance of profit in the system of the national economy is due to the fact that it is one of the most important sources of accumulation and replenishment of the revenue part of the state and local budgets, the development of the enterprise, the satisfaction of the interests of the property owner and members of the labor collective. The peculiarity of profit in market conditions is not its accumulation in monetary form, but its investment in production, which contributes to the economic growth of the enterprise and increasing its competitiveness. The importance of profit for market economy entities is presented on
rice. 8.1.

In the practice of accounting and planning, the following types of profit are distinguished:

balance sheet (gross) profit; profit from the sale of products; profit from non-operating operations; taxable profit; preferential profit; profit on the product; profit remaining at the disposal of the enterprise; net profit.

The classification of types of profit is presented in Figure 8.2.

Balance sheet (gross) profit includes profit received from all areas of the enterprise’s activities: sales of products, works, services, goods, fixed assets, material values, intangible and other assets and profit (losses) received from non-operating operations.

The excess of income over expenses determines the size of the book profit. It characterizes the final results of production and financial activities of industrial and non-industrial units on the balance sheet of the enterprise. The total amount of book profit is determined by the formula:

Pb = Pr + PPR + Pvn,

where PR is the profit (loss) from the sale of products, the performance of work and the provision of services;

PPR – profit (loss) from the sale of the company’s property;

Pvn – income (losses) from non-operating operations (lack of material values, difference in exchange rates, legal costs, etc.).

Profit from the sale of products, the performance of work and the provision of services is the main part of the balance sheet profit. It is defined as the difference between the revenue from their sale in selling prices (gross income) and the costs of production (circulation) of the sold products, goods, works, services and the amounts of taxes, fees and deductions paid in accordance with the established formula:

Pr= Ci*Qpi – Spi*Qpi – KH,

where Ci is the selling price of the unit of the i-th product, rubles / piece;

Spi – cost of the unit of the i-th production, rubles / piece;

Qri – sales volume of i-th products, pcs.;

m – the number of products in the order book, in the production program;

CN – indirect taxes and deductions are paid from the proceeds in accordance with the legislation of the Republic of Belarus.

Profit from non-operating operations is determined taking into account their income and expenses. Non-operating expenses and losses include:

costs associated with the rental of property, except in cases where the lease of property is the main economic activity of the organization; losses not compensated by the perpetrators from downtime due to external causes; losses from markdown of production stocks and finished products; losses on operations of previous years, identified or in demand in the current year; non-compensable losses from natural disasters (destruction and damage to production stocks, finished products and other material values, losses from production stoppages, etc.), including costs associated with the prevention or elimination of the consequences of natural disasters; non-compensatable losses as a result of fires, accidents, other emergency situations caused by extreme conditions; negative differences formed when the National Bank changes the exchange rates of foreign currencies, foreign currency accounts and operations in foreign currency; taxes and fees paid in accordance with applicable law from financial results; losses from the sale (purchase) of foreign currency, etc.

Taxable profit is calculated according to the following formula:

Pobl= Pb – Pd – NN – Llg,

where Pobl is taxable profit;

PB – balance sheet (gross) profit;

Pd – profit from income-taxed activities;

NN – real estate tax;

LLG – preferential profit;

The object of income taxation is dividends and income equated to them. For tax purposes, a dividend is a part of the profit of an enterprise, economic company or economic association paid respectively to the owner (owners) of this enterprise or participants of an economic company or economic association in connection with the right of ownership of the property of the enterprise or participation in a business company or economic association, with the exception of: payments to the shareholder (shareholder) in cash or in kind and in the amount, not exceeding its contribution (contribution) to the authorized capital of the enterprise upon its liquidation; payments to shareholders (shareholders) of the enterprise in the form of shares (units) of the same enterprise, as well as in the form of an increase in the nominal value of shares (units), if such payments do not change the percentage of participation in the authorized capital of any of the shareholders (shareholders).

Dividends for tax purposes are equated with income from agreements (debt obligations) providing for participation in profits.

To determine taxable profit, real estate tax and reduced profit are deducted from the book profit. Real estate tax is calculated in accordance with the Law of the Republic of Belarus “On Real Estate Tax”. The object of taxation is the value of fixed production and non-production assets that are the property or are in the possession of the enterprise, objects of work in progress.

Profits that, in accordance with the Law of the Republic of Belarus “On Taxes on Income and Profits of Enterprises, Associations, Organizations”, are not subject to income tax, are considered to be privileged. This is the profit actually used for measures to eliminate the consequences of the accident at the Chernobyl nuclear power plant; to carry out environmental and fire-fighting measures, research and development work; to develop production, increase the production of consumer goods, fuel and energy complex and building materials. The total amount of preferential profit used for these purposes should not exceed 50% of the balance sheet profit. Profits used for the maintenance of health camps, children’s pre-school institutions, homes for the disabled, charitable purposes, the creation of jobs for the employment of disabled people under the established quota, etc. are also not taxed.

Profit on the product is the difference between the selling (wholesale) price of the enterprise and the full cost of the product.

The profit remaining at the disposal of the enterprise is the balance sheet profit minus all taxes:

PPR = PB – NN – NP,

where – NP – income tax.

The law provides for tax benefits of a permanent nature. At the same time, additional benefits are established when approving the budget for the next year.

When determining the amount of taxes paid, it is necessary to be guided by the Law of the Republic of Belarus “On Taxes on Income and Profit of Enterprises, Associations, Organizations”, approved by the budgets of the republic for the next year and other instructions.

Net profit is formed after deduction from the profit remaining at the disposal of the enterprise of priority payments: fines (penalties, penalties), transport fee and other local taxes, repayment of the principal amount of debt on the loan.