Another report that an organization must submit is a profit and loss statement. This report has form No. 2 and is recommended by the Ministry of Finance of the Russian Federation; it is submitted based on the results of the calendar year (by March 30 of the next year).
In this article, we will use an example to understand how to fill out a profit and loss statement. You will be able to view a completed sample report, Form No. 2, and also download the report form itself, current for 2013.
(form and completed sample).
Each line of the profit and loss statement indicates the total indicators for the reporting period and for the same period of the previous year. Amounts shown in brackets are subtracted.
Profit and loss report form 2 sample filling
The report header is filled out in the same way:
- reporting period (our organization will report for 2012);
- name according to the charter, TIN;
- from the classifiers we take the OKPO, OKVED, OKOPF/OKFS codes;
- organizational and legal form/form of ownership - in our example it is LLC and private property;
- units of measurement - all report amounts, just like in the balance sheet, are expressed either in thousands (code 384) or in millions (code 385), decimal places are rounded to the nearest thousand/million.
2110 – Revenue: the amount of revenue for the sale of goods, provision of services, performance of work (that is, revenue from the main activities of the enterprise) minus , data is taken from (credit 90.1 minus debit 90.3).
2120 – Cost: the data is also taken from the debit of account 90 “Sales”, but it is necessary to exclude commercial expenses for sales, which include all costs except for, and administrative expenses, which are allocated in separate lines of form No. 2.
2100 – Gross profit (loss): difference between lines 2110 and 2120.
2210 – Selling expenses: these include expenses from the main activity minus transportation and procurement, data is taken from the debit of account 44, these expenses are also included in the cost price on account 90.
2220 – Administrative expenses: related to the management of the organization: administrative, rent, personnel costs, taxes. For this line, the data is taken from account 26 “General business expenses”, the same data appears in the debit of the account. 90 as part of the cost price.
2200 Profit (loss) from sales: determined by the formula: page 2100 - page 2210 – page 2220.
2310 – Income from other organizations: if an organization invests its funds in the authorized capitals of other enterprises, receives some dividends, a percentage of profit, then these incomes are taken into account as a loan and should be reflected in this line of Form No. 2.
2320 – % to be received: interest on various deposits, deposits, loans, bonds, bills that are due to the organization to be received is indicated. This data can also be taken from credit 91.
2330 – % payable: Interest on loans and borrowings payable by the organization; data to be filled in is taken from debit 91.
2340 – Other income: all other income accrued on the account loan is indicated. 91 minus the amounts of VAT, excise taxes, export duties recorded in the debit of the account. 91, and not previously taken into account (2310 and 2320).
2350 – Other expenses: all other expenses reflected in the debit of the account are indicated. 91 minus the data in line 2330.
2300 – Profit (loss) before tax: calculated by the formula: page 2200 + page 2310 + page 2320 - page 2330 + page 2340 - page 2350.
2410 – Current income tax: for the reporting period for which the profit and loss statement form No. 2 is prepared, generated on the account. 68 “Taxes and fees”.
Lines 2421, 2430 and 2450 are filled in if the organization calculates income tax according to PBU 18/02, small businesses may not apply the norms of PBU 18/02 and, accordingly, it will not have records on these lines.
2421 – Permanent tax obligations: if, when determining income tax, discrepancies arise between accounting and tax accounting, then the resulting difference (according to PBU 18/02) is called a constant difference, and the product of this constant difference by the income tax rate will give the amount of tax that will lead to an increase in the payment of income tax to the budget. This amount of tax, by which the payment to the budget will increase (or decrease) due to discrepancies in accounting and tax accounting, will be a permanent tax liability; it will be reflected in the account. 99 subaccount “Permanent tax obligations”. The amount that must be indicated in this column can be determined as the difference between the debit and credit of this subaccount.
2430, 2450 – Deferred tax liabilities, assets: if an organization takes into account income or expenses for accounting in one reporting period, and these incomes or expenses fall under taxation in subsequent reporting periods, then these incomes (expenses) are called temporary differences according to PBU 18/02, and the amount of profit tax on these incomes ( expenses) – deferred tax liabilities (assets). The data for these lines is taken either from account 77 “Deferred tax liabilities” (credit turnover minus debit turnover) or from account 09 “Deferred tax assets” (debit turnover minus credit turnover).
2460 – Other: This line of the profit and loss statement, Form 2, contains information on other amounts that affect the organization’s profit (penalties, fines, surcharges, overpayments of income tax).
2400 – Net profit (loss): determined by the formula: 2300 - 2410 +/- 2430 +/- 2450 - 2460.
2510 – Result from revaluation: line in form 2 is filled out only if the profit and loss statement is prepared based on the results of the calendar year; this line reflects the results (depreciation and revaluation).
2520 – Result from other operations: here all the data that has not yet been taken into account previously on the previous lines in the income statement can be reflected.
2500 – Financial result of the period: determined by the formula: 2400 +/- 2510 +/- 2520.
2900, 2910 – Basic / diluted earnings (loss) per share: must be completed only for a joint stock company.
For more information about filling out a profit and loss report for a small business, read the article: ““. Download the form and a sample of filling out the statement of changes in capital, form 3, see. You can download the cash flow statement form 4.
The completed profit and loss report is signed by the head of the organization and submitted to the tax office.
Accounting reporting falls on the shoulders of all business entities. Reporting documents must be submitted annually. The main accounting document is. As for the profit and loss statement, this is rather an additional document.
The Profit and Loss Report form (form according to OKUD 0710002) can be downloaded from.
You can download a sample of filling out form 2 at.
When preparing a profit and loss statement, you can safely consider the “title” of the balance sheet as a sample of the title part, since the information indicated in this part will be the same. Each line of the OKUD 0710002 form is filled in with total indicators.
The profit and loss statement form requires line-by-line completion, as in the balance sheet, but the order of completion is slightly different, which is best seen in several examples:
- 2110 - it is necessary to calculate the difference between the total revenue of a given enterprise received from the sale of goods or services and the amount of VAT paid. The data for this line is taken from sales account 90.
- 2120 shows the cost price after excluding all costs; data for this item is taken from the Debit of account 90.
- 2100 – this line is intended to determine gross profit and is found as the difference of the lines indicated above.
- 2210 - line is intended to show commercial costs, the values of which are taken from Debit 44. Cost amounts are also included here.
- 2220 – before filling out the income statement, this value is taken from Debit 44.
Sample of filling out a profit and loss report
First sheet
Second sheet
The essence of the income statement
The profit and loss statement of an enterprise contains the amounts of income of a given object, by which one can judge how efficiently the given object operates, how profitable it is, and also view the growth of profit for it. This document is compiled using the incremental method, which allows you to view the dynamics of growth or decrease in income from activities.
This document is sometimes also called a “financial profit statement” or “financial performance statement”; it plays a key role in forming an idea of the activities of a given entity and the benefit of its founders.
The profit and loss report is compiled on the basis of parameters for profits, losses, results of sales and non-sales processes, company costs for sales and production, other costs, as well as taxes, etc.
The profit and loss statement is submitted in Form 2 (OKUD 0710002), as required by law. Using this form, it is established how profitable a given enterprise is and the individual components of the entrepreneurial process.
The profit and loss statement must fully characterize the profit of a given enterprise. That is, how it was obtained, shares by type of activity, all costs of carrying out the business process, as well as net profit after paying these costs.
In order to correctly assess the development trend of a business entity, it is necessary to carry out a comprehensive analysis of the profit and loss statement. It is this procedure that helps determine how effective the business model of a given business entity is. This matters not only for those who manage the company, but also for investors and creditors.
A good video about the essence of the profit and loss statement:
The structure of the profit and loss statement is such that the most significant indicators are placed at the beginning of this document, depending on the degree of importance. After the main indicators, data is entered on those sources of income and expenses that are indirectly related to the main ones. Before drawing up a profit and loss statement, it is also worth calculating the amount of tax payments that a given company makes, since this will directly affect the amount of net profit, which will also be indicated in the profit and loss statement form.
So, this type of reporting is mandatory for business entities and can be submitted in a simplified form of reporting losses and profits. The importance of this document corresponds to the importance of the balance sheet. It helps to assess the profitability and profitability of the enterprise under study, therefore it is important not only for regulatory authorities, but also for the managers themselves.
The profit and loss statement is one of the two main forms of accounting that all legal entities are required to prepare and submit to inspection authorities and other interested parties. Let's consider its structure, content and rules for filling it out in 2018–2019 in full and in simplified form. We'll tell you where to get the form and see the completed sample. We’ll also tell you where to read about upcoming changes in the procedure for submitting accounting reports and the strict increase in fines for those who do not submit them.
What does the profit and loss statement reflect?
Modern Form 2 is called a statement of financial results (clause 1 of Article 14 of the Law “On Accounting” dated December 6, 2011 No. 402-FZ). It is applied from reporting for 2011, although changes to the text of the order of the Ministry of Finance of Russia dated 07/02/2010 No. 66n, which approved this form, in part of the name were made only in 2015 (by order of the Ministry of Finance of Russia dated 04/06/2015 No. 57n).
This renaming, in fact, became the only (not counting a number of manipulations with the word “for reference” in the 2nd table of the report) change in the content of the profit and loss statement form since its approval by Order No. 66n. At the same time, the signature of the chief accountant, which was not considered mandatory since the 2011 report, disappeared from the signatures under it.
A similar form that was previously in force (for reporting for 2006-2010) was introduced by order of the Ministry of Finance of Russia dated July 22, 2003 No. 67n. It was also called a profit and loss statement and was listed as Form 2 in the list of accounting forms. Since the essence of the report has changed little when the form is re-approved, it often continues to be called the profit and loss statement (or Form 2 for short). We will also use these names.
The overall total figures in the income statement for a certain period show how and from what the financial result of the organization was formed. These figures are compared with the same period of at least 1 previous year. Thus, the profit and loss statement makes it possible to analyze indicators not only at the reporting date, but also over time.
Annual reporting is mandatory and intended for submission to regulatory authorities (IFTS, Rosstat).
NOTE! Soon it will be optional to submit reports to Rosstat. Read about this and other changes that will occur in the submission order starting with reporting for 2019. And about increasing the fine for failure to submit reports to 700 thousand rubles. this publication says.
Its integral part is Form 2, which, together with the balance sheet, is filled out by all legal entities without exception.
A report prepared for intermediate dates of the reporting year may be needed:
- economic service;
- managers;
- founders;
- banks;
- investors;
- counterparties.
As a rule, it is formed according to the same principles (on an accrual basis, taking into account data on the closing of the next month of the year). However, a report compiled for a specific period (month or quarter) or including an incomplete last month may also be required.
What is the structure of Form 2 enterprises in 2018-2019
The structure of the profit and loss statement for 2018-2019 corresponds to that in force starting with the reporting for 2011. It still highlights the following to be filled out:
- the header part of the report, which indicates the period for which it was compiled, the date of compilation, all the main statistical codes (with their text interpretation) and the TIN of the legal entity are given, as well as the order of the unit of measurement in which the figures are entered into the report;
- the main table containing the calculation of the financial result itself;
- lookup table;
- manager's signature and date of signing.
In the form of the profit and loss statement given in Order No. 66n, the main table consists of 4 columns:
- explanations that are filled out if there are deviations from the lines proposed by the form or if there are numbers in the report that require more detailed disclosure;
- unified names of indicators (rows of the table in which, sequentially, from the amount of revenue received before taking into account IT and ONA, which affect income tax, the financial result of work for the period indicated in the title is calculated);
- digital values of these indicators corresponding to the reporting period;
- digital values of these indicators corresponding to the same period of the previous year.
Reporting lines submitted to Rosstat must be encoded. The codes required for this are given in Appendix 4 to Order No. 66n. In order not to adjust the reporting submitted to different authorities, it is more convenient to initially prepare it in a form containing the “Code” column between the 2nd and 3rd columns of the form recommended by the Ministry of Finance. Moreover, during current work with reports, it is often preferable to indicate the line numbers of the form rather than their names.
What the reference table shows
The 2nd table in the income statement contains background information divided into 2 parts:
- on income that increases the profit received by directly attributing it to capital (for example, the amounts of revaluation of fixed assets and intangible assets falling directly into additional capital) indicating the amount of the final profit of the period adjusted for these incomes;
- profit (loss) per 1 share (this data is needed for JSC).
General rules for drawing up Form 2
The profit and loss report is filled out according to the following rules:
- Cumulatively throughout the year, changing the calculation data and the overall financial result monthly. For official reporting, the reporting period will be a year. For the legal entity’s own purposes, it can be done in any way.
- According to accounting data, comparing the figures calculated from the report with similar turnovers or results for the corresponding accounting accounts.
- Amounts that have a negative (or opposite to the original, such as for SHE or IT) sign are shown in parentheses.
- Columns along the lines of missing indicators are crossed out.
How to fill out the full form
When filling out a profit and loss statement, information is entered using turnover data from accounting accounts:
- 90 (for core activities) and 91 (for other income and expenses). VAT and excise taxes are excluded from revenue. The result obtained from the profit and loss statement in terms of the amount of profit (loss) before tax must coincide with the similar result of account 99.
- 09 and 77 (according to ONA and ONO) for legal entities applying PBU 18/02. The values of income tax and net profit generated using them in the report should give, respectively, the amount of tax received according to the declaration and the amount of the final profit (loss) that arose in accounting.
- 83 (for income not included in net profit) when entering data into the reference table.
Read about the rules for drawing up a similar report for IFRS purposes in the material “We prepare a profit and loss statement in IFRS format” .
How to write a report using a simplified form
Some legal entities may prepare a profit and loss statement using a simplified form. This is directly indicated in Order No. 66n, in Appendix 5 to which this form is given. There is no reference table in it, and the main one is built in the same way as in the full form of the report, but the rows are combined (enlarged).
It is also convenient to enter an additional “Code” column into it. The peculiarity of specifying the code in the lines of the combined indicators will be the choice for them of the code for which the data predominates in the line.
In this article, I will talk about how to design a profit and loss report. After reading the article, you will be able to create a financial performance report, even if you initially only have a company balance sheet.
Since creating a financial statement is a rather lengthy process, I have developed a free program that allows you to create a balance sheet and profit and loss report automatically - here: select a balance sheet and profit and loss report. The principles by which reporting is developed are set out in this article.
For finance and economics diplomas and practice reports, perhaps the most important documents are the balance sheet and profit and loss account (income statement).
But at enterprises, very often the student is not given any documents, and he has to look for suitable reporting on the Internet, and then try to customize it to his organization.
Externally, the new form can be immediately distinguished from the old one by line numbers: in the old one, numbers like 210, and in the new one, 2110. The essence has not changed much. In brackets are negative values (more precisely, values that need to be subtracted from income). Let's look further at an example.
The first thing you need to start with is to decide how much revenue to write in this report - line 2110.
We take the average cost of the organization’s goods. Let’s assume that an organization sells panel houses, the cost is 700 thousand rubles. every.
Multiply by the number of sales per year. We take this value arbitrarily. If the enterprise is very small, you can multiply by 12. Let’s assume that 12 such houses are sold in just a year (if it’s average, we can assume that one house is sold every two weeks). We get 700 * 12 = 8400 thousand rubles.
That's it, the proceeds are ready.
Now the cost of sales is line 2120. If you want your enterprise to be successful, take the cost of approximately 70% of the revenue. The higher the cost of sales, the worse the financial results will be. the state of the organization in the future. For example, I'll take 85%. Calculation: 8400 * 0.85 = 7140 thousand rubles.
Gross profit (or loss) (line 2100) is simply the difference between revenue and cost of sales
Selling expenses (2210) and administrative expenses (2220) for small businesses can be taken equal to zero (because they are often not allocated separately), but if you want, you can allocate 10 percent of revenue to them. For example, I’ll take 5% of revenue for commercial and administrative expenses: 8400 * 0.05 = 420 thousand rubles.
Sales profit (or loss) (2200) is the difference between gross profit and selling and administrative expenses.
Income from participation in other organizations (2310) - for small enterprises can be taken equal to zero. If you want there to be some kind of figure, take 5-15 percent of the revenue. In the example, this value is zero. If this figure is greater than zero, then in the balance sheet you need to add in the non-current assets line “Profitable investments in material assets” a value that will be 5-10 times greater than the value of line 2310
Interest receivable (2320) depends on whether you have any investments in long-term or short-term assets on your balance sheet (not in this report) (on the left side of the balance sheet). You just need to take the amount of these investments from the balance sheet and multiply by 0.15-0.2. That is, the company allegedly gave its assets to other organizations at 15-20% per year. These percentages are reflected in this line. Here we will indicate 0 for now.
Other income (2340) can be taken in the amount of 5-10% of revenue. Other expenses (2350) can be taken in the amount of 3-7% of revenue. In the example, other income will be equal to 10%: 8400 * 0.1 = 840 thousand rubles, and other expenses will be 7%: 8400 * 0.07 = 588 thousand rubles.
Profit (or loss) before tax (2300) - you need to do the following with the lines: 2200 + 2310 + 2320 - 2330 + 2340 - 2350
It is best to take permanent tax liabilities (or assets) (2421) to zero. Or approximately 10% of the income tax amount.
The change in deferred tax liabilities (2430) and the change in deferred tax assets (2450) are also best taken equal to zero.
Other (2460) is also taken equal to zero.
Net profit (or loss) (2400): this is the difference between lines 2300 and 2410. But if you take lines 2421, 2430, 2450 and 2460 not equal to zero, then they will affect the net profit and this issue will have to be studied separately.
Actually, what we get is:
| Revenue | 2110 | 8400 |
| Cost of sales | 2120 | (7140) |
| Gross profit (loss) | 2100 | 1260 |
| Business expenses | 2210 | (420) |
| Administrative expenses | 2220 | (420) |
| Profit (loss) from sales | 2200 | 420 |
| Income from participation in other organizations | 2310 | 0 |
| Interest receivable | 2320 | 0 |
| Percentage to be paid | 2330 | 0 |
| Other income | 2340 | 840 |
| other expenses | 2350 | (588) |
| Profit (loss) before tax | 2300 | 672 |
| Current income tax | 2410 | (134,4) |
| Including permanent tax liabilities (assets) | 2421 | 0 |
| Change in deferred tax liabilities | 2430 | 0 |
| Change in deferred tax assets | 2450 | 0 |
| Other | 2460 | 0 |
| Net income (loss) | 2400 | 537,6 |
For theses, such data is required for three years. If you want the company to improve its activities, then you need to increase revenue (by 5-15 percent every year), the rest is recalculated according to the algorithm already shown. It is best to take multipliers that are not equal (such as 5%, 10%), but approximate ones - it will be more natural (for example, 7.81%).
These multipliers should be at least a little different each year! Otherwise, all the proportions of the articles will be the same and this will give you away.
Best regards, Alexander Krylov,
Materials for final qualification (diploma, bachelor's, master's), coursework and practice reports in economics, financial management and analysis:
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10 comments on ““How to come up with a profit and loss statement””
Hello, Natalia.
Depending on the taxation system at the enterprise, there may be the following values:
1) Approximately 20% (plus/minus 0.2%) of profit before tax (under the general system)
2) Approximately 6% (plus / minus 0.2%) of revenue - for the simplified tax system 6% from the “income” base
3) Approximately 15% (plus / minus 0.2%) of profit before tax for the simplified tax system 15% on the basis of “income minus expenses”.
The adjustment is “plus / minus 0.2%” - so that the numbers are not completely ideal, because in a real enterprise there can always be some little things.In the liability side, it is best to indicate either an increase in retained earnings (this makes sense if the enterprise is profitable) or an increase in additional capital (these are the funds of the owners). Or both.
I would not reduce the amount of non-current assets by the amount of depreciation, since new VA assets are purchased every year.
The appearance of VA may not be reflected in any way in the financial results statement. There will be so many changes that it is easier not to change anything at all than to think about what changes there will be. If you increase VA percent by 30 percent from the existing level of the balance sheet total, then, in my opinion, there may be no fundamental changes in the financial results and balance sheet at all.
The draft article on preparing the balance sheet is here: . Perhaps the comments on it will be useful to you.
Thanks for the answer. But here’s the point: on the balance sheet, long-term borrowed funds are 2325, short-term ones are 300, in the form of 2 interest payable is only 21. Why is it so little? it's real? You write that this is about 15%, but here it is much less (and the real balance is not made up). and one more thing: net profit for the reporting period was 379, undistributed at the end of the previous period was 89, respectively, at the end of the reporting period the undistributed profit should be 379 + 89 = 468, but in fact the balance sheet is 451, where did the other 17 go? the funds are empty, in addition to this, in capitals and reserves there is only the authorized 10 thousand.
Part of the interest payable may be taken into account as part of the cost price. And the other part is included in interest payable. Their total value will be approximately 15 percent of loans and credits.
Well, the profit - it’s just that not all of it went to the needs of the enterprise. 17 - went somewhere else)
Hello, I have a question regarding line 2410 (Current income tax) when calculating, where does the income tax rate come from? or is this approximate?
The state has entrusted the responsibility of preparing financial statements to business entities. It must be submitted to the tax authorities annually. So, in 2019, reports for 2019 are submitted.
The main reporting document is the balance sheet of the enterprise, the additional one is the profit and loss statement. They are compiled by both large and small business structures.
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The financial results statement, as the Income Statement is now called, is a table reflecting the financial results of a company's activities for a specific period. Since 2012 it has been renamed. The composition of the document's indicators, as well as its main essence, have not changed.
An Income Statement is generated by all business entities that maintain accounting records of their activities. Unlike the balance sheet, which shows the property status of the enterprise and its financial sources, the Financial Results Report reflects exactly the results of work in certain indicators by which the effectiveness of the organization’s activities is assessed.
Together with the balance sheet, the Profit and Loss Statement is submitted to the tax office and state statistical authorities. It is also used by partners, banks, investors cooperating with the company. It is the main information source when carrying out financial analysis.
According to the Statement of Financial Results and Balance Sheet, all indicators and ratios characterizing the activities of the company are determined and evaluated. Therefore, their proper preparation is especially important.
What is the essence of the document
The Profit and Loss Statement contains information about the income of the enterprise, which shows the efficiency of its activities, profitability and profitability. Drawing it up on an accrual basis provides the opportunity to study the dynamics of indicators.
This document is called differently: “income statement”, “financial income statement”. However, regardless of the name, its role remains the same - forming an idea of the company’s work and profitability for the owners.
The information contained in the Report is used not only for internal analysis. It is also necessary for external users: partners, lenders, investors. Enterprises operating internationally prepare financial statements in English to make them accessible to external users.
The financial results statement must fully reflect the profit of the business entity.
Namely:
- how the company made a profit;
- profit shares for certain types of activities;
- costs of the entrepreneurial process;
- net profit minus all costs.
To correctly assess the results of an enterprise's activities, a comprehensive analysis of the financial report is carried out. This allows you to determine the effectiveness of the business model, which is necessary for the company’s management, investors and creditors. Regardless of the form of ownership, be it LLC, OJSC, CJSC, each organization submits a profit report to the tax authority and Rosstat.
The most common schemes
There are various schemes for constructing financial performance reports around the world.
Among all the reasons for their classification, we can highlight:
- by how the indicators are arranged;
- on the approach to grouping expenses;
- according to the methodology for disclosing the difference between income and expenses;
- by the method of determining financial results.
Based on which cost grouping scheme is used, the format of cost and expenses is determined. IFRS presents 2 types of classification: functional and natural. The first provides for distribution according to purpose, the second - according to the nature of the costs.
According to the functional diagram, costs are grouped into classes depending on their functions. Thus, the cost of sales includes commercial, administrative and other expenses. Enterprises using this scheme provide additional data on the nature of costs, including salaries of the organization's employees and depreciation deductions made.
According to the natural scheme, costs are divided into the following groups:
- for materials;
- for remuneration of personnel;
- for the provided depreciation charges, etc.
An important difference between expense and cost schemes is the display in a natural scheme of changes in work in progress and finished goods inventories. In practice, both schemes are combined in financial statements for profit.
Key Notes
General content framework
The income statement includes the following indicators:
- Income received and expenses incurred for ordinary activities. They include net revenue (received from the sale of products excluding VAT, excise taxes and other similar payments) and (excluding management and commercial costs). This group includes the gross profit of the enterprise, management costs, commercial expenses, profit or loss from the sale of goods, performance of work, and services.
- Operating income and expenses include interest that the company receives and pays, income from participation in other companies, other similar expenses and income of the company.
- Non-operating income and expenses, including profit or loss calculated before tax and from ordinary activities, as well as income taxes and other similar payments.
- Extraordinary expenses and income are reflected in a separate group.
- The final indicator is net profit.
Central indicators
The following main indicators can be highlighted in the Financial Results Report:
| Revenue | It characterizes the performance of the enterprise and the effectiveness of its management accounting. |
| Profit/loss from sales | This indicator is contained only in the full form of the report maintained by large firms. Its content includes the effectiveness of sales and all costs incurred for production, sales, and management. |
| Profit/loss from sales before tax | This indicator combines profit from ordinary activities with other income (from interest on loans, sales of fixed assets, participation in other companies, etc.) and expenses not related to the main work of the enterprise (for example, banking services). |
| Net income (loss | The resulting indicator of a company's performance. Reflects her real income minus all expenses incurred. Its distribution is one of the most important areas of management accounting. |
What is reflected in the structure
Based on the final indicators of the Report, it is clear from what the company received its financial result. They are compared with the same previous period. This structure makes it possible to analyze indicators not only at the reporting date, but also over time.
Not every company can receive it. For example, this could be an LLC that supplies wheelchairs.
Accountants explained how tax calculations are carried out for advance payments of corporate property tax.
Often financial statements are needed for interim periods. Therefore, it is compiled based on the total data of closed months. Its indicators are needed by the economic department, management, owners, investors, banking institutions, and counterparties.
The financial results statement is structured in such a way that the most significant data (revenue, sales profit, cost) is reflected first. This is followed by indicators on indirect sources of income and expenses of the enterprise.
How to properly prepare a profit and loss statement
The document is drawn up in accordance with the statutory accounting reporting form - Form 2. The data entered into it brings the report closer in importance to the organization’s balance sheet.
Small businesses have the right to choose to submit a report in full form or in an abbreviated version. The official form contains Appendix No. 66n to the order of the Ministry of Finance dated July 2, 2010.
The structure of Form 2 can be adjusted depending on the needs of a particular company. These changes must be made in accordance with the general requirements established for the official form.
Before generating a financial report on profit, it is necessary to calculate the tax payments of the enterprise. They have a direct impact on the amount of net profit.
The organization's profit and loss report is filled out along the lines:
| 2110 | Revenue from main activities is reported. The question often arises as to how this revenue is reflected with or without VAT. Its amount does not include VAT or excise taxes. |
| 2120 | A cost equal to the amount of the enterprise's expenses incurred in the course of ordinary activities without VAT and excise taxes (for production and sale, purchase of goods, performance of work, other costs of core activities) is entered. The indicator is written in parentheses. |
| 2100 | The gross profit is reflected as revenue minus cost. A negative result is indicated in parentheses. |
| 2210 | The business expenses incurred for the main activities of the company are indicated. |
| 2220 | Profit/loss on sales is recorded. The indicator is defined as the difference between the company's gross profit and its commercial costs. A negative value is entered in parentheses. |
| 2310 | The line contains the amount of income from participation in other organizations and reflects the amount of income from these operations. |
| 2330 | The amount of interest that was paid by the company when using the loans and borrowings taken is entered. |
| 2340 | The amount of other income minus excise taxes and VAT, as well as the amounts of lines 2310 and 2320, is entered. |
| 2350 | The amount obtained by the difference between other expenses and those reflected in line 2330. |
| 2300 | Profit/loss before tax is calculated based on data before the organization's income tax is calculated. Determination order by report lines: Page. 2200 + page 2310 + page 2320 + page 2340 – page 2330 – page 2350. The negative indicator is enclosed in parentheses. |
| 2410 | Write the amount of current income tax calculated based on the tax return information. Enterprises that do not pay income taxes do not fill out this column. |
| 2400 | The amount of net profit or loss received is calculated as follows: line 2300 – line 2410 + (-) line 2430 – (+) line 2450 + (-) line 2460. |
In the income statement, empty lines are filled with a single dash.
An example of calculating the main indicators:
The profit and loss statement reflects the financial results of the enterprise for a certain time, called the reporting period. So, it can be compiled monthly, quarterly, every six months and 9 months, over the year in an increasing period.
Indicators with negative values and those amounts that should be subtracted (expenses) are written in parentheses. All income and expenses included in the report must be divided into 2 groups: ordinary and other.
The data entered into the profit and loss report is not determined by the balances of the accounting accounts. It is necessary to enter the turnover for a specific account/sub-account or summarize the turnover for several synthetic accounts at once. The simplified form provided for small firms includes the same indicators, but enlarged.
The template proposed by the Ministry of Finance of Russia, which can be downloaded for free in the legal system, simplifies filling out a financial report as much as possible.
Analysis of results
The main purpose of the financial results statement is to characterize the resulting performance indicators of the company:
- gross profit;
- profit/loss from product sales;
- profit/loss before tax;
- net profit/loss received for the reporting period.
This document is the main information source for analyzing the profitability of the company's activities, the profitability of its production and the amount of net profit. Explanations to the report include data related to the accounting policy of the enterprise, not included in the main content, but necessary for a qualitative assessment of its financial condition.
Attention!
- Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
- All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.
