Profit is calculated as the difference between income and production costs, where income is an indicator of the financial performance of the enterprise, which reflects all financial receipts of the company, including manufactured and sold products paid for by the customer.

Costs are the costs of producing and selling products.

The profit indicator consists of three components:

• profit from the sale of products is calculated as the difference between the funds received from the sale of goods (revenue) and the full cost of production;
• profit from the sale of various property and material assets;
• profit from non-realization of operations - funds received from the non-core activities of the company (securities, dividends, proceeds from the lease of property and other activities).

If the profit of the enterprise is reduced to zero, then the result of economic activity are costs.

Marginal profit is obtained by selling an additional copy of the product.

A high rate of such profit may not always show a really high profit.

Profit can be effectively managed only when not only accounting for funds by increasing the total cost of sales with a stable level of costs, but the maximum amount of profit that can be achieved under the prevailing conditions.

It should be remembered that setting a low price can undermine the profitability of a product or service. It is recommended to practice a reduction in pricing policy for a short time and in a small amount of goods, otherwise, with a large demand for such a product, the profitability of the enterprise as a whole will fall.

In order for a product or service not to fall in price, it is recommended to offer customers simpler analogues. Such a step helps to maintain the price distance and the attractiveness of products.

Types of profit

Profit is classified depending on the conditions of its formation. There are several types of profit.

Depending on the distribution costs:

• accounting- profit received as the difference between the income from the sale and expenses (costs);
• economic- profit received as the difference between accounting profit and additional costs (including costs that are not taken into account in the cost of production).

According to the final result of the company's economic activity:

• normative(provided) - the minimum profit, which allows to ensure the financial stability of the enterprise;
• maximum possible(or minimum allowable) - profit received at minimum cost and maximum revenue;
• unreceived(lost profit) or loss - income that is not received due to violations of an obligation by the other party.

By the nature of taxation:

taxable- profit, which is subject to taxation in accordance with the law, is the difference between the total income from the sale of goods and non-sales operations, excluding losses of the previous period.

Tax free income- income received as a result of operations regulated by Article 251 of the Tax Code of the Russian Federation.

What is income?

Income represents the revenue received for a certain period as a result of the sale of goods and services, excluding material costs. Taxes are also deducted from this amount in accordance with the law.

Under the material costs refers to the amount spent on the production of products. Depreciation of fixed assets, social contributions and other costs, with the exception of wages, are also equated to such costs.

The constituent elements of income are profits and labor costs. The amount of income directly depends on the market value of the goods and market conditions.

Income does not include receipts from individuals and legal entities. If the income is taxable, then the amount that remains after paying the tax is divided into the following components:

• consumption funds - costs for the social sphere (remuneration of employees);
• investment income - the amount received as a result of investment activities;
• insurance income - the cost of insurance premiums.

Income is classified according to costs.

Marginal revenue is calculated as the amount by which the total income of an enterprise changes after the sale of one unit of a good or service.

The resulting figure reflects the payback of the enterprise.

On its basis, in combination with marginal cost, management decides whether it is rational to expand the firm.

Average revenue shows the level of income received from the sale of one unit of goods. As a rule, this amount is equal to the price of the product. By controlling pricing, a company can regulate its own revenues.

Gross income is the result of a firm's economic activities, calculated as the difference between the cost of goods or services sold and the total cost of production.

What is revenue?

Revenue is the total amount of money received as a result of the sale of goods and services for a certain period of time.

The total revenue consists of the amounts received by the enterprise as a result of the main activity (sale of goods or services), investment activities (sale of non-current assets and securities) and financial activities of the enterprise.

Sales revenue is cash received from the sale of goods and services. It is divided into two types:

• gross proceeds- represents the total amount of proceeds from the sale of goods, services, income from non-sales operations and property;
• net proceeds- cash received after deducting VAT, taxes, discounts and the cost of returned products from gross revenue. It is from these funds that the calculation of dividends and amounts for the development of the enterprise is then carried out.

EBIT profit

Earnings Before Interest and Taxes (EBIT) is an intermediate value between gross and net income, it is income from which interest and taxes have not yet been deducted.

This is also referred to as operating income.

But this is wrong. Unlike operating income, EBIT also includes non-operating income. If there are no non-operating income and expenses in EBIT, the indicator will be equal to operating profit.

EBIT is calculated from the income statement and is the sum of profit or loss before taxes and interest payable. A positive EBIT is considered normal.

EBITDA profit

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) depends on the depreciation method. This is the amount of earnings before interest, taxes and depreciation, which shows cash inflows.

Based on EBITDA, the company's debt burden is calculated. To do this, the total liabilities (long-term and short-term debt) are divided by the nominal value of EBITDA.

The value of total liabilities is available for calculations from the Liabilities section of the balance sheet. The normal value of the indicator should not exceed 3. If the value is 4 or more, then the company has a strong debt burden.

When calculating the debt burden indicator, it is necessary to take into account the degree of repayment of receivables. If the receivables are not repaid by buyers, the company loses its solvency, but this fact is not reflected in the indicator itself.

Video on the topic: “Profit and gross income, what is the difference?”

Why do giant corporations with billions of dollars of trading volume and revenues suffer losses? And how do small firms show very high profits, having a maximum of several hundred employees in their assets? Economic terms have a lot of overlap with each other, and juggling with concepts can be used to manipulate. It is especially important to separate categories such as "profit" and "revenue". Despite the seeming synonymy, they denote completely different concepts.

Revenue is all funds received by an individual or legal entity for goods or services, excluding the cost of their acquisition. Thus, the composition of the proceeds will include all material benefits received from trade, production, and consulting services. There are various ways to calculate this value. Revenue can be cash (at the time of receipt of funds) or accrued (at the time of transfer of goods, regardless of the time of payment for it).

Profit is the difference between the company's revenue and the cost of obtaining it. This value can be either positive or negative. Profit is expressed in cash and in kind and corresponds to the balance of funds after deducting all costs associated with the conduct of business activities.

Thus, if there are no production costs, then the profit will be equal to the revenue, but in practice this rarely happens. In other cases, the concepts will be different, reflecting different aspects of the enterprise. Thus, revenue is always either positive or zero. Profit can be both plus and minus, which is associated with the peculiarities of doing business.

Revenue can be calculated based on the volume of shipped products. After all, factoring, leasing schemes and deferred payment have been established today. Profit is calculated only upon receipt of money. You can calculate the revenue by adding up all the receipts of funds to the account of the enterprise. To establish the amount of profit, you need to subtract from income all the financial costs associated with doing business.

Regardless of the approaches to calculation (real or nominal), revenue remains constant. As for profit, it can be total (the difference between income and expenses) and net (the one that remains after paying taxes and fees). Understatement of real profit is one of the ways to reduce the tax burden on the enterprise. Overestimation of revenue, on the contrary, is a means to improve the image, create more financial "weight" of the company.

Findings site

1. Calculus. Revenue is always greater than zero, if it is lower, then they speak of its complete absence. As for profit, this value can be either positive or negative.
2. Compound. To calculate revenue, it is necessary to calculate the sum of all funds received by an individual or legal entity for a certain period of time. Calculating profit is more complicated: first you need to know the value of all income and expenses.
3. real expression. Revenue can be "virtual", for example, if the company works with a deferred payment, giving its customers the opportunity to deposit money later. Profit can be expressed only upon the fact of all settlements, when the funds are either received in hand or transferred to a bank account.
4. Expression. Revenue is a single-digit value, since it consists of all receipts. Profit can be gross (general) and net (remaining after payment of all fees in favor of the state).

The main goal of the financial and economic activities of each commercial organization is to make a profit, which is one of the key indicators of such activities (Article 50 of the Civil Code of the Russian Federation). Also, one of the main indicators of the company's activity is its revenue. What is the difference between revenue and profit, we will consider in this consultation.

Revenue, profit and income: what is the difference

In order to answer the questions of how income differs from revenue and profit, and also how revenue differs from profit, let's look at how revenue and profit are formed.

The income of the company is recognized as receipts of cash, other property and proceeds from the repayment of obligations that lead to an increase in the capital of this organization, with the exception of contributions from its participants (clause 2 PBU 9/99).

The organization's income is divided into income from ordinary activities and other income (clause 4 PBU 9/99).

The company's income from ordinary activities is the proceeds from the sale of goods, income from the performance of work or the provision of services (clause 5 PBU 9/99).

Revenue consists of the amount of cash received, other property calculated in monetary terms, and the amount of receivables (in the part not covered by receipts) from the company's main activity, with the exception of the following receipts (clause 3, clause 6 PBU 9 /99 ):

• amounts of VAT, excises, export duties and other similar obligatory payments;
• amounts under agency agreements, commission agreements and other similar agreements in favor of the committent, principal, etc.;
• amounts received in the order of advance payment for goods, works, services;
• sums of advances on account of payment for goods, works, services;
• deposit;
• amounts received as a pledge, if the agreement provides for the transfer of the pledged property to the pledgee;
• amounts received as repayment of a loan, a loan granted to a borrower.

In addition to income in the form of proceeds from the sale of goods, the performance of work and the provision of services for the main type of activity, the organization's income is also other income from the conduct of other types of activities (investment, financial), with the exception of the income specified in paragraph 3 of PBU 9/99 (clause 4 PBU 9/99).

In particular, other income includes income from the provision of one's property for temporary use for a fee; proceeds from participation in the authorized capital of another organization; interest on granted credits and loans; fines and penalties for violation of the terms of contracts (clause 7 PBU 9/99).

That is, income is not revenue or profit. These are all receipts that lead to an increase in the capital of the company.

The profit of the company is defined as a positive difference between the income received (which includes proceeds from the sale of goods and services, income from the rental of property, interest income, fines received, etc.) and the expenses incurred to obtain these incomes.

What is the difference between revenue and profit (in simple words)

So, income is revenue from the sale of goods, performance of work, provision of services, as well as other non-operating receipts (clause 4, clause 5 PBU 9/99, clause 1 of article 248 of the Tax Code of the Russian Federation, clause 1 of article 249 of the Tax Code RF).

The difference between revenue and profit is as follows.

Revenue is the volume of sales, the amount of money received from the sale of manufactured or previously purchased products, services rendered, work performed (Article 249 of the Tax Code of the Russian Federation).

Profit is a part of income (including proceeds from the sale of goods, works, services) remaining after reimbursement of costs aimed at obtaining it (Article 247 of the Tax Code of the Russian Federation).

Unlike profit, revenue cannot be negative or zero.

Let's explain with an example. The organization sold goods for 100,000 rubles per month. This is the income of the organization. The cost of purchasing these goods amounted to 50,000 rubles. Other expenses of the organization per month - 20,000 rubles. Then the profit of the organization for the month will be:

100 000 rub. - 50,000 rubles. - 20,000 rubles. = 30,000 rubles.



Revenue

(Revenue)

Revenue - the result of the enterprise's activities for a certain, expressed in monetary terms

The concept of revenue, its main forms, calculation of revenue, revenue in accounting, the difference between revenue and profit

Revenue is, definition Revenue and, the main differences between revenue and profit. Revenue and, the main differences between revenue and income Types of revenue Direct counting method Calculation method Methods for determining revenue shipping method Payment method Use of proceeds Sources and links

Revenue is, definition

Revenue is material or other benefits received by the company through the provision of a number of services to its customers or the sale of its products. Revenue is the logical conclusion and result of the activity of any companies commercial as well as non-commercial. Non-commercial firms under revenue understand the total amount of donations and gifts received on their account.

Revenue is the amount of money or other benefits received by the organization for a certain of its activities, mainly due to sales goods or services to their clients.

Revenue is income (in the form of cash or future benefits) from sales goods, work or services. Revenue is the most common measure of a company's financial results.

Revenue is cash received (proceeded) by an enterprise, firm, businessman from the sale of goods and services.

Revenue is money received enterprise for products shipped to customers ( work, services).

Revenue is the gross inflow of economic benefits arising in the ordinary course of the entity's activities for period in the form of capital increases, other than contributions from shareholders.

Revenue is cash receipts from the sale of products on the market.

Revenue as the main source of inflow of material assets of the enterprise

The most important category of accounting and analysis of the company's income, and therefore its profitability and stable financial position, is revenue. Revenue occupies the largest share in the total income enterprises. The company's revenue is its main source of formation of the company's own financial resources.

Revenue is the sum of cash receipts for a specific period from the performance of the enterprise. The very same activity of the enterprise is classified into three main areas:

Primary activity;

Investment activities;

Financial activities.

Depending on the direction of the enterprise, the company's revenue is also classified in three areas:

Revenue from core business. Revenue comes from the sale of products (performed works services rendered);

Revenue from investment activities, expressed as a financial result from the sale of non-current assets, the sale of securities;

Revenue from financial activities. This type of revenue includes the result of placing bonds and shares of the enterprise among investors.

Sales revenue is an indicator that characterizes the final result of the enterprise's production activities. It is defined as the product of the average price and the number of units sold.

The proceeds from the main activity acts as proceeds from the sale of products (work performed, services rendered) is expressed as a financial result from the sale of non-current assets, the sale valuable papers.

Revenue from financing activities includes the result of placement among investors bonds m shares of the enterprise.

As is customary in countries with a market system of management, the total revenue is the sum of the revenue in these three areas. However, the main value in it is given to the proceeds from the main activity, which determines the whole meaning of the existence of the enterprise. In public catering enterprises, revenue consists of the amount of sold products of own production and the amount of purchased goods. In form No. 2 "Report on financial results", in the declaration of arrived revenue is shown gross as sales revenue. But in statistical reporting, the sales volume is referred to as "turnover" and it consists of retail and wholesale turnover. Income from sales in public catering is revenue - the amount of goods sold for sales prices. It consists of cost sold products of own production and purchased goods. Revenue can be: total, including VAT, and net (without VAT).

Revenue and profit, the main differences between revenue and profit.

In the scientific community, it is customary to divide the concepts of "profit" and "revenue". There are many differences between these two financial concepts. Both "profit" and "revenue" are financial and business terms. Their meanings are close to each other because they are often used in the same context. Both of these terms are used in accounting accounting and economic disciplines.

Revenue is the total amount of money that a business receives as a result of its activities, such as the sale of a product or service, but can also be received indirectly. A business can receive indirect income by investing money into anything.

On the other hand, profit or net profit is money that remain in business after deducting all costs and expenses from the proceeds. Judicial expenses and costs include operating costs (, maintenance of equipment, safety, expenses for and many others), and capital. can be divided into different types (usually in tandem) and include fixed and variable costs, direct and indirect costs, etc. Profits can be classified as positive or negative (plus or minus).

In most cases, the concept of profit and revenue mean the same thing. For example, if an employee received salary this is his profit and revenue, because everything and pension payments are automatically deducted from wages employees, so what the employee receives in his hands is the balance after all deductions.

They are also calculated differently. calculated by subtracting costs and expenses from total revenue. Revenue is calculated by multiplying the price by the number of units sold product.

In economics, profit and revenue have a broader meaning. Economics looks at the profits and income of an entire industry or an entire country. This perspective allows a country or industries evaluate the rise or fall.

Main differences:

- "Profit" and "revenue" are concepts used in business, finance and economics, this or their equivalent received by an economic object (business, organization or government) or physical. person (employees);

Both concepts are used for different levels: personal, business and national. Accounting generally uses the personal and business levels to calculate profits and revenues. The economy counts nationally or globally;

- "revenue" is generated after the business produces and sells products and services. Revenue is calculated by multiplying the price by the number of units sold. Profit is calculated after all deductions and cost calculation;

Profit and revenue are constantly involved in the production cycle. "revenue" is the starting point for profit, and profit provides cash for the next cycle of production and increase in revenue.

Revenue and income, the main differences between revenue and income

Differences in the formulations of the concepts of "income" and "revenue" often do not allow one to form a correct idea of ​​them. However, it should be noted that these concepts are different from each other. So, in particular, revenue is the amount of sales of goods (services) at the selling price. Among the inhabitants, it is generally accepted that revenue is the money received by the cashier of the enterprise. This view is due to the fact that every person is a retail customer. In the store, settlements are made with a slight difference in time between receiving the product and paying for the goods. When settling between companies difference in time between shipment (receipt of a product or service) and their payment can take a significant amount of time. As a rule, the revenue from the sale of a product or service is fixed at the time of shipment, regardless of the state payment(prepayment).

The term "income" usually refers to difference between the proceeds from the sale of goods and the initial cost of these goods, both produced and purchased. When determining income from the provision of services, it is considered that revenue is equal to income, since no materials are consumed in the provision of services. AT retail a synonym for income is the term "realized trading".

Sometimes, the terms "income" and "profit" mean the same thing. These concepts should not be confused. Profit is the final result of the company's activities for a certain period of time and is the difference between all income and all costs of the enterprise.

Types of revenue

Revenue from product sales- the most important result of the production, economic and commercial activities of the enterprise, basically corresponds to the "sales volume" indicator accepted in world practice. In the process of production, performance of work, provision of services, a new value is created, which is determined by the amount of proceeds from sales. Sales proceeds are the main source of reimbursement for the funds spent on the production of products (works, services), the formation of cash funds. Its timely receipt ensures the continuity of the circulation of funds, uninterrupted process enterprise activities. Untimely receipt of revenue entails interruptions in activities, reduced profits, violation of contractual obligations, as well as penalties.

The revenue from the sale of products is understood as the amount of money actually received on the company's bank accounts, in the cash desk of the enterprise, and other receipts in payment for sold products (works, services) for a given period (month, quarter, year). The proceeds from the sale of products include amounts received for the sale of finished products and semi-finished products of our own production, works and services of an industrial nature, purchased items of trade (previously purchased components and parts for assembly), etc. Revenue depends on the volume of products sold, its range, quality and grade, price level. The timeliness and completeness of proceeds from the sale of products contributes to the normal financial condition of the economic object.

The proceeds from the sale of goods and products indicate the completion of the company's production cycle, the return of the company's funds advanced for production into cash and the beginning of a new round in the turnover of funds.

Revenue is directly related to profit. High profits ensure debt stability, prosperity and financial stability of the enterprise. To ensure financial stability, it must have a flexible capital structure, be able to organize its movement in such a way as to ensure a constant excess of income over costs in order to maintain solvency and create conditions for self-reproduction. High income (revenue) is the result of competent, skillful management of the whole complex of factors that determine the results of the economic activity of the enterprise and contribute to an increase in financial results.

Revenue from the sale of pawnshop services- represents the amounts received from the assessment and storage of property accepted in debt security, amounts (interest) received from the provision of short-term loans secured debt security movable property of citizens intended for personal consumption

Gross revenue- the total amount of proceeds from the sale of products, works and services, as well as material assets. The main part of the gross proceeds is the proceeds from the sale of marketable products. In addition, gross revenue includes revenue from other sales, that is, sales of non-industrial products. Gross proceeds are determined in actual selling prices.

The gross proceeds of an economic entity is essentially an impersonal cash receipt that can be used to reimburse current expenses, be placed in, used for capital construction, etc.

Sales revenue- revenue from cumulative sales (including sales in ) for a given accounting period, valued at full prices (invoice prices) without accounting discounts granted, product returns, price cuts and other adjustments.

Foreign exchange earnings- foreign currency received from the export of goods and services, as well as from international loans.

Foreign exchange net revenue- proceeds from the sale of something (material values), the currency that remains free to use.

marginal revenue- increase in revenue as a result of the sale of one additional unit of goods.

Hidden revenue- revenue that is not reflected in the accounting or hidden under the guise of unperformed business transactions. The main purpose of concealing the proceeds is either direct theft or its involvement in illegal, unofficial circulation of funds.

Hidden proceeds in foreign currency are considered to be the proceeds not credited to accounts with authorized banks on the territory of Russia, regardless of its reflection in the accounting records of the enterprise, unless otherwise permitted by the Bank of Russia.

Average revenue- the total amount of proceeds from the sale of products, divided by the number of products sold (or the number of products for which it is presented), is equal to the price at which the product is sold, provided that all units of trade items are sold at the same price.

In addition to this, there is also total revenue.

Revenue from product sales

Proceeds from the sale of products (works, services) - the final result of the production activities of the enterprise, the amount received on its account in bank or to the cash desk of funds for products manufactured and delivered to customers, buyers, work performed for them or services rendered. At an industrial enterprise, the main, predominant part of the proceeds are funds from the sale of marketable products, i.e., finished trade items and other products manufactured for delivery to customers, industrial services to the side. The revenue also includes the amount of funds received from the so-called. other sales, i.e., the implementation of the results of non-industrial activities (products of the subsidiary agriculture of the enterprise, services of factory transport to the side, etc.). The proceeds also include funds from the sale of inventory items previously acquired by the enterprise and turned out to be redundant due to a change in the production program and for other reasons. However, when evaluating the efficiency of the enterprise, these amounts are not taken into account, since they do not reflect the results of its production activities. The proceeds from the sale are planned by the enterprises and taken into account by them in the current wholesale prices. Its value depends on the quantity, composition of manufactured products and the prices at which it is sold: list price (fixed), contractual, which may be higher than the list price, but within the established limits, and free, depending on the relationship between demand and supply of goods. From the proceeds from the sale, the enterprise reimburses the costs of production and sale of products (for the purchase of materials and raw materials, fuel and energy, the repair and operation of machinery and equipment, wages, etc.), and the amount remaining after the reimbursement of costs is the profit of the enterprise. With the increase in revenue, the ability of the enterprise to direct more funds to the consumption of the labor collective, wages, and the provision of social and other benefits to employees increases. The larger the revenue, the larger the consumption fund of the enterprise. In world economic practice, the indicator of proceeds from the sale of products corresponds to the indicator of sales in actual selling prices, periodically published in the annual balance sheets of firms.

Terms of sales revenue planning

AT process financial and economic activities, the financial services of the enterprise can carry out revenue planning for the coming year, quarter and operationally. Annual revenue planning is effective in a stable economic situation. In conditions of instability, when the ratio of demand and suggestions confirmed by difficult to predict changes and legally established rules of conduct for legal entities. persons are constantly changing, annual planning is difficult and is not an objective guideline for the enterprise. In such a situation, quarterly planning is more appropriate. Operational revenue planning is used to control the timeliness of receipt of money for shipped products to the company's cash accounts.

Calculation of planned revenue from product sales

To determine the proceeds from the sale of products, it is necessary to know the volume of sales of products in current prices, excluding VAT, excises, trade and marketing discounts and export tariffs for exported products. Revenue from work performed and services rendered is determined based on the volume of products and the corresponding prices and tariffs. Intermediaries sell these products to retailers at prices that include selling margins. Retailers sell goods directly to consumers at retail prices, i.e. with trade markup. Selling goods at fixed prices, trading companies receive a trade discount.

In a market economy, prices become the most important factor in regulating the production and consumption process and directly affect demand and offer.

The planned revenue from the sale of products is determined by the method of direct counting, multiplying the number of trade items sold by their selling price and adding the amounts received for the entire range of trade items.

The proceeds from the sale of each nomenclature of trade items is determined by the formula:

The volume of sales can be calculated based on the commodity money issue of trade items in the planning period, adding the balances of trade items at the beginning of the planning period and subtracting those at the end of the planning period. The planned sales volume is calculated by the formula:

Realization prices in the planning period are determined on the basis of the prices of the base period, which are adjusted for the expected changes in the planning period, including taking into account demand and suggestions. When the range of trade items is too large, the calculation of the sales plan can be carried out using a combined method. The proceeds from the sale of the main types of products are determined by the direct account method, and to calculate the proceeds from the sale of trade items of another assortment, they use the enlarged method. For calculation take commodity release for the entire range of remnants of trade items, add to it the value of the remnants at the beginning of the planning period and subtract the expected balances at the end of the planning period at free selling prices and at cost.

Proceeds from the sale of products, works and services is the main source of reimbursement of funds for the production and sale of products, the formation of income and the formation of financial resources. According to the market economy, sales volume and revenue are given special attention. The amount of revenue depends not only on reimbursement of expenses and the formation of profits, but also on the timeliness and completeness of tax payments, repayment of bank loans, which affect the level of interest paid, which ultimately affects the financial result of the enterprise.

Revenue from the sale of products is the amount of funds received on the account of the enterprise for the products sold. It is the main source of cash income and financial resources of enterprises. Revenue from the sale of products is a financial category that expresses the monetary relationship between suppliers and consumers product.

Direct counting method

The direct count method is based on guaranteed demand. It is assumed that the entire volume of manufactured products falls on a pre-order package. This is the most reliable way to plan revenue when the plan issue of securities and the volume of sales of products are linked in advance with consumer demand, the necessary range and the structure of the emission of products, the corresponding prices are set, then the proceeds from the sale can be determined by the formula:

As a rule, in the conditions of market relations, most enterprises do not have a guaranteed demand for the entire volume of manufactured products. To optimize costs and increase financial results, an enterprise should make efforts to increase the money emission of products, expand its range, and produce goods that are fundamentally new in terms of consumer qualities. In addition, in turn, the number of goods sold will also depend on the price level, and this dependence in practice can be elastic, inelastic and unity with the corresponding elasticity coefficients (Ke): in the first case it is greater than one, in the second it is less, in the third it is unit. The physical meaning of these coefficients is that:

The degree of elasticity has a different effect on the desired value. For example, with elastic demand (Ke>1) AT when the price goes down, it goes up, and when

inelastic (Ke B not

changes because the decrease in price is fully offset by a corresponding increase in the quantity demanded.

Calculation method

In conditions of unstable demand for products manufactured by the enterprise, a calculation method is also used for planning revenue, the basis of which is the volume of products sold, adjusted for input and output balances. Planning revenue from product sales is carried out by analogy with cost planning:

When planning the balances of finished products at the beginning of the planning period, the enterprise does not have comprehensive data on the actual value of the balances, therefore, the expected balances of unsold products are taken into account. Their cost in sales prices is determined using the conversion factor, which is equal to the quotient of dividing the volume of products in the prices of the reporting period

from goods for which the payment deadline has not yet arrived;

from goods shipped but not paid for on time;

· from the goods which are on safe keeping at buyers in a type of refusal of acceptance.

Thus, the amount of revenue may differ significantly from the cost of shipped products.

You can consider in more detail the planning of these factors that affect the timely receipt of revenue for manufactured products.

When planning the balance of unsold products in the warehouse, they proceed, first of all, from their actual availability, and in the absence of current data, from the data as of the last reporting date, and the expected release of marketable products, taking into account its implementation in accordance with existing orders at the beginning of the planning period.

The planning of the balance of goods, the payment term for which has not come, is carried out on the basis of an analysis of the structure, schedules, methods of payment according to

concluded contracts, as well as the established terms of document circulation for intracity and out-of-town settlements, as well as settlements in foreign currency when conducting foreign economic activity. Planning the balance of goods shipped, but not paid on time, goods

in safekeeping with buyers, goods shipped, documents for which have not been transferred to the bank, is based on operational data on the reasons for non-payments and measures taken to reduce them. The balance of finished products in stock at the end of the planning period

are determined based on the need for accumulation to fulfill contractual obligations, the validity of which is outside the planning period, the conditions for implementation and other reasons. When planning revenue from the shipment of unsold products, it is considered

only finished products in stock at the beginning and end of the planning period.

Methods for determining revenue

shipping method

The shipment method implies that revenue is fixed at the time of shipment of goods, services, regardless of the state of payment for them. Revenue from shipment (on an accrual basis) is recognized in tax accounting at the time of transfer of ownership of goods or services, i.e. when the product is sold to the customer. And it does not depend on whether it is paid or not. If the accounting policy for tax purposes uses the option "on shipment", the obligation to determine the tax base arises on the day the goods are shipped. At the same time, the date of transfer of ownership of the specified goods and the day of shipment may not coincide: under the terms of the contract, the ownership of the goods can pass to the buyer after payment for the product, and the seller’s obligation to pay VAT arises at the time of shipment. If the goods are not shipped and are not transported , but there is a transfer of ownership of this product, such a transfer of ownership is equated to the sale of the product.

In modern accounting systems, the "by shipment" method is predominant.

Payment method

When using the “on payment” method (cash method), the company's revenue is fixed at the time of payment for goods, works or services. This method is used in small enterprises where cash settlement is carried out mainly and the date of shipment of goods or services coincides with the date of their payment. This method is also most widely used in small retail establishments, such as medium-sized stores, small restaurants and cafes.

Disadvantages of the pay-as-you-go method:

The “on payment” accounting system is mainly based on cash and banking transactions, and therefore important assets, such as inventories and property, fall out of the accounting contour. For example. When purchasing equipment, its cost will be written off as expenses and will reduce the profit for the month in which this equipment was purchased. In the future, the equipment will work and generate income, but the cost of purchasing it will be reflected in only one reporting period.

When using the "on payment" method, it is difficult to control receivables and payables in settlements with suppliers and buyers, since the "on payment" system keeps records of receipts and payments of money and does not keep records of shipments of goods.

In the "on payment" accounting system, income and expenses may refer to a different reporting period.

For example. Employee salary expenses in January refer to February. Advances for services received will be credited to the month in which payment is received, although the services themselves may be rendered in a different month.

The company's revenue and its place in the system of accounting indicators

Revenue is one of the most important accounting indicators. It is a key profit factor, on the basis of which many financial indicators are built, revealing the profitability of the company, the return on investment, as well as many stock ratios. Based on this, the issues of recognition and measurement of revenue are extremely significant in forming a picture of the financial position of the organization.

For these reasons, the general principles of revenue recognition for financial reporting purposes occupy a central position in the system of accounting rules formed by the requirements of IFRS. In most cases, they are quite clearly formulated by the drafters of IFRS, unambiguous and simple. That revenue recognition has remained unchanged for decades. However, in recent years, the application of the general principles of revenue recognition in some particular cases is increasingly considered as distorting the reporting information of companies. This is due, firstly, to the fact that business practices are becoming more complex, with a clear shift in focus from manufacturing to services, where the proper timing of revenue recognition is more difficult to establish. Secondly, specialists in the field of formation and analysis of accounting information note the obvious tendency of managers, whose remuneration is directly determined by the market price of the company's shares and the amount of reported profit, to manipulate accounting rules in order to overestimate profits. Thirdly, there is enough documentary evidence of the readiness of independent auditors to meet such "wishes" of managers, especially in the absence of special rules prohibiting following these wishes. These trends in many cases lead to disastrous consequences, both for companies and for the audit firms themselves, the significance of which for economic practice is extremely significant.

Here, it should be noted that errors or deliberate distortions of facts related to the recognition of revenue can be divided into two categories: the reflection of legally received revenue in the wrong financial (reporting) period and the recognition of revenue that is actually unearned. Given the periodic nature of reporting, even simple revenue recognition errors can make a huge difference, even though they can be corrected over subsequent reporting periods.

In practice, all cases of erroneous recognition of revenue represent a serious problem for accountants seeking to properly interpret and apply IFRS, including for independent auditors.

Rules for recognizing revenue from various types of transactions have evolved over time and have been created in stages by various standards developers in a changing economic environment.

Under current IFRS, revenue from the sale of products or the provision of services can only be recognized when it is “earned”, that is, when the relevant criteria are met. A careful analysis of the rights and obligations of the parties and the risks that they bear at various stages of the transactions should be carried out in order to determine the moment of the actual sale and establish the basis for revenue recognition. Where it has the right to return the goods along with a deferred or contingent obligation to pay, or where there is a significant obligation on the seller to complete the transaction, revenue at the time of initial delivery is not recognised.

Similarly, if there is an implicit or explicit obligation of the seller to buy back the transferred product, the actual sale transaction is not considered to be completed. At the same time, in all cases, the recognition of revenue means demonstrating that the buyer assumes all "ownership risks" in full.

Determination of revenue in the accounting report

The IFRS Principles define revenue as "an increase in economic benefits during the reporting period, in the form of inflows or increases in assets or decreases in liabilities, resulting in an increase in equity that is not related to contributions from equity participants." Revenue includes corporate income and other income. At the same time, revenue is recognized as income from the ordinary activities of the enterprise, characterized, among other things, as income from sales, provision of services, investment income (in the form of interest, dividends), as well as income from the provision of property for use (rent and license payments).

The main issue in accounting for revenue is determining when it is recognized. Revenue is recognized when it is probable (ie "most likely") that future economic benefits will flow to the entity and these benefits can be measured reliably. IAS 18 specifies the conditions under which these criteria are met and therefore revenue is recognised. This standard also provides practical guidance on the application of these criteria.

This standard is applied when accounting for revenue from the following transactions and events:

Sales of goods;

provision of services;

Providing for the use by other parties of the assets of an enterprise that brings interest, (royalties) and dividends.

By merchandise, the Standard includes not only property acquired by an entity for resale (for example, goods purchased by a retailer, supplies or other property held for resale), but also own-produced goods held for sale.

The provision of services, according to the Standard, involves the organization's performance of the task stipulated by the contract within a specified period of time, both within one or several reporting periods. Sometimes service contracts are directly related to construction contracts, such as contracts for the services of project managers and architects. The recognition and measurement of revenue arising from the fulfillment of such arrangements is not covered by this Standard, but is accounted for in accordance with the requirements for works contracts in IAS 11 Construction Contracts.

The provision of the organization's assets for use by other parties gives rise to revenue in the form of:

- "interest - a fee that is charged for the use of cash and cash equivalents or from amounts owed;

Royalties - payments for the use of non-current assets of the company, for example, patents, trademarks, copyrights and computer software;

Dividends - the distribution of profits between the owners of share capital in proportion to their share in the capital of a certain class.

Thus, IAS 18 considers the accounting procedure for only a part of the potential constituent elements of the company's revenue, primarily from operations related to the sale of goods, the provision of services, the use by other organizations or individuals of the property of the reporting company that brings interest, dividends, royalties.

It should be specifically noted that IAS 18 should not be applied to the accounting and reporting of revenue from many contracts and transactions that generate revenue or other income and are governed by other standards, namely:

Under lease agreements (IFRS (IAS) 17 "");

From capital gains on investments and dividends accounted for using the equity method (IAS 28 "in associates");

Under insurance contracts (IFRS 4 "Insurance contracts");

From changes in the fair value of financial assets and financial liabilities or their disposal (IAS 39 Financial Instruments: Recognition and Measurement);

From changes in the value of other current assets;

On initial recognition and change in the fair value of biological assets related to agricultural activities (IAS 41 Agriculture);

On initial recognition of agricultural products (IAS 41); and

As a result of the extraction of mineral resources.

Thus, according to IAS 18 "Revenue", revenue is "the gross inflow of economic benefits for a certain period in the ordinary course of an enterprise, resulting in an increase in equity that is not related to contributions from equity participants."

It should be borne in mind that revenue refers only to the gross receipts of economic benefits received and receivable by the organization on its account. Payments received on behalf of a third party, such as taxes on goods and services and taxes on Additional cost, are not economic benefits received by the organization and do not lead to an increase in capital, since they are subject to transfer to the budget. Therefore, they are not included in revenue. Similarly, the agent entity receives gross inflows of economic benefits from amounts collected on behalf of the principal (guarantor) that do not increase the capital of the agent entity. Thus, amounts collected on behalf of the principal are not revenue. Only commissions can be recognized as revenue here.

Methods for calculating revenue in accounting

In accounting, two main methods of calculating revenue are used:

cash method- revenue is considered to be cash payment received on the accounts or in the cash desk of the enterprise or goods received in payment of obligations (barter).

accrual method- revenue is accrued when consumers have obligations to pay for the products or services of the enterprise. Most often, accrual occurs at the time of shipment to the consumer of products or the provision of services.

It is divided into several varieties:

Arithmetic. It's about the difference between costs and benefits. Costs are usually different, but income is expressed as gross income, that is, total. Therefore, profit is calculated differently.

Normal. This refers to the normal, necessary income that arises from the conduct of a particular business. The value of this profit depends on the lost profit, that is, the entrepreneurial spirit of the businessman and alternative opportunities for investing capital.

Economic. This refers to the difference between economic costs, which include normal profits, and gross income. It is also called super profit.

Household. This is the sum of economic and normal profits. This is nothing more than the initial base in the process of distribution and use by the enterprise of the profits received.

Accounting. It is calculated according to the following criterion: it is necessary to subtract the explicit costs of the purchased (external origin) from the gross income. But if implicit costs are subtracted from this type of profit, then the result will be net economic profit.

In accounting, revenue is more often understood not as any proceeds from the sale, but as proceeds from the main activity, i.e. activities for which the company was founded. The remaining receipts are called income and expenses (other income, interest income).

In accordance with accounting rules, revenue is recognized in an amount calculated in monetary terms, equal to the amount of receipt of cash and other property and (or) the amount of receivables. In the financial statements (Profit and Loss Statement), revenue is indicated minus indirect taxes, in particular VAT, which are included in the cost of goods, but are actually withheld by sellers from the buyer for transfer to the budget.

Another feature of the reflection of revenue in reporting is that the amount received from the buyer will not always be full revenue for the organization. So, in commission trade (commission agent) receives from the buyer the proceeds, in which his remuneration is only a small part, and the rest of the amount is subject to transfer to the committent. For the commission agent, only his remuneration will be revenue.

Revenue arises from the organization not only when selling goods for money, but also, for example, when bartering. In this case, revenue is determined based on the cost of goods (values) received or to be received by the firm.

Revenue is recognized in accounting under the following conditions (PBU 9/99):

The organization has the right to receive this proceeds (which follows from a specific contract);

The amount of proceeds can be determined;

There is confidence that as a result of a particular operation there will be an increase in the economic benefits of the organization;

The right of ownership (possession, use and disposal) of the product (goods) has passed from the organization to the buyer or the work has been accepted by the customer (the service has been rendered);

The costs incurred or to be incurred in connection with this transaction can be determined.

Generally, revenue is recognized without regard to actual cash receipts (accrual basis). However, for small enterprises, it is possible to take into account revenue as funds are received (cash basis).

In the process of production, performance of work, provision of services, a new value is created, which is determined by the amount of proceeds from sales.

Sales proceeds are the main source of reimbursement for the funds spent on the production of products (works, services), the formation of funds of funds, its timely receipt ensures the continuity of the circulation of funds, the uninterrupted operation of the enterprise. Untimely receipt of revenue entails interruptions in activities, reduced profits, violation of contractual obligations, and penalties.

Measuring revenue in an accounting report

Under IAS 18, revenue must be measured in accounting records at the fair value of the consideration received or receivable.

The amount of revenue from a transaction is typically determined by an agreement between the entity and the buyer or user of the asset. It is measured at the fair value of the consideration received or receivable, taking into account the amount of any trade or wholesale discounts provided by the company. Consideration is usually expressed in the form of cash or cash equivalents, and the amount of revenue is the amount of cash or cash equivalents received or receivable. However, the Standard emphasizes that if cash (or cash equivalents) are deferred, the fair value of the consideration should be less than the nominal amount of cash actually to be received.

The standard gives an example when an organization, as a consideration for the sale of goods, provides an interest-free loan to the buyer or accepts from him at an interest rate below the market. Such a transaction is effectively a financing transaction, with the fair value of the consideration determined by discounting all future cash inflows using an implied rate of interest.

In accordance with IAS 39, the difference between fair value (discounted value) and the nominal amount of consideration is recognized as finance (interest) income.

Where the consideration is not cash but is exchanged for goods or services of a similar nature and value, no revenue arises. When exchanging various goods, revenue is measured at the fair value of the goods or services received, less any cash or cash equivalents transferred. If the fair value of the goods or services received cannot be measured reliably, then revenue is measured at the fair value of the goods or services given up, adjusted by the amount of cash or cash equivalents given.

Recall that in accordance with IFRS, fair value is the amount for which a liability can be exchanged or settled in a transaction between knowledgeable, willing parties.

The revenue recognition criteria in IAS 18 Revenue should generally be applied to each entity's transactions on a case-by-case basis. However, under certain circumstances it is necessary to apply them to individual elements of one transaction in order to correctly reflect the sources of revenue. For example, if the sale of a product involves the subsequent servicing of the sold product, the price of which can be determined, the service fee is not recognized at the time of revenue recognition, but is recognized over the period during which the sold product is serviced.

Conversely, however, the recognition criteria may apply simultaneously to two or more transactions when they are linked in such a way that their commercial effect cannot be determined without considering the series of transactions as a whole. The standard gives an example when an enterprise can sell goods and at the same time enter into an additional purchase of these goods in the future, thereby, in essence, leveling the operation, and hence the receipt of revenue. In such cases, both transactions are considered together and can be treated as a financing transaction.

Use of proceeds

If the receipt of revenue to the cash accounts of the enterprise is the completion of the circulation of funds, then its use is both the beginning of a new circulation and the stage of distribution processes, at which the revenue base of budgets of different levels is formed and thereby the national interests are provided, as well as own financial resources are formed. enterprises.

the proceeds received on the accounts of the enterprise are used primarily to pay the bills of suppliers of raw materials, materials, semi-finished products, components for trade items, spare parts for repairs, fuel, energy. From the proceeds, it is paid, the depreciation of fixed assets is reimbursed, and the profit of the enterprise is formed.

Directions for the use of proceeds are shown in the diagram:

Analysis of the relationship between revenue and profit

The concepts of revenue and profit are different, both in economic sense and in practical reflection. Profit, in principle, reflects the amount of revenue minus all types of expenses. But it cannot be said that profit from revenue depends in direct proportion, since there is a so-called effect of operating leverage. The effect of operating leverage is that with the growth of sales revenue, profit grows at a faster rate than revenue. This effect is explained by the fact that there are fixed costs in the cost structure.

The effect is calculated as the ratio of gross margin to profit.