FORMATION OF THE FINANCIAL RESULTS AND PROFIT MANAGEMENT: DISTRIBUTION AND USE

Keywords: accounting, financial results, profit, profit distribution, use of profit, accounting and information system

Abstract

The aim of the article was an exploration of the impact of the accounting policy elements on the financial results of the enterprise. The focus of the study was a positive financial results (profit) distribution and use. The method of the exploration was a collection and a systematization of the existing explorations and academic research papers. The next steps of the study were a synthesis of the most crucial aspects of the recent research and formatting a system of the profit management complied with the order of formation of the net financial results based on the National Principle (Standard) of the Accounting of Ukraine number 1. The practical importance of the exploration results lies in the field of accounting-and-analytical support creation for management planning, analysis, and decision making, particularly, the decision on the efficient distribution and use of the profit. The system developed was adjusted to the major factors of the profit distribution policy development. Among the factors the system was adjusted to there were the following: enterprise life cycle curve, the volume of the profit gained, sums and volume of the dividends that were paid out in the previous periods, the enterprise objectives set. Among the explored directions of the profit distribution there were payment of dividends to shareholders; royalty payment; capitalization of profit, directing it to increase own capital and reserves. Based on the legislative guides of the profit distribution and the requirements associated with the formation of the reserves for the support of the sustainable development growth and the needs for financing of the separate aspects of enterprise activities the profit should be distributed across three main groups of expenses: for payments to owners; to ensure economic development; to ensure social development. The study also covers the importance of following the principles of revenue and expense recognition to determine the financial results, as well as the tasks of developing criteria, evaluation methods, the order of data generation in the accounting system.

References

Азрилиян А.Н. Большой экономический словарь: 5-е изд. доп. и перераб. М.: Институт новой экономики, 2002. 1280 с.

Еріотіс Н. (2005). Вплив розподіленого прибутку та вплив розміру фірми на її дивідендну політику: Деякі грецькі дані. Міжнародний журнал бізнесу та економіки. 2005. Випуск 4, номер 1. С. 67–74.

Мельник Т.Ю. Теоретичні аспекти аналітичного забезпечення контролювання розподілу прибутку підприємства. Науковий вісник Херсонського державного університету. 2015. Вип. 12. Ч.2. С. 201–205.

Національне положення (стандарт) бухгалтерського обліку 1 «Загальні вимоги до фінансової звітності» : [Наказ від 07.02.2013 №73] / Міністерство фінансів України. URL: http://zakon4.rada.gov.ua/laws/show/z0336-13

Підгірна В.С. Теоретико-методологічні засади розподілу та використання прибутку суб’єктів господарювання. Економічний форум. 2014. № 4. С. 241–248.

Славкова О.П., Фонталіна К.М. Проблемні питання обліку нерозподіленого прибутку. Приазовський економічний вісник. 2018. Випуск 5(10). С. 424–428.

Собченко Т.С., Гнесь О.П. Обліково-аналітичне забезпечення управління фінансовими результатами суб’єктів малого підприємництва. Молодий вчений. 2017. № 10(50). C. 1054–1059.

Azrilijan, A.N. (2002). Big Dictionary of Economics. Moscow [in Russ.]

Eriotis, N. (2005). The Effect Of Distributed Earnings And Size Of The Firm To Its Dividend Policy: Some Greek Data. International Business & Economics Journal. Volume 4, Number 1, 67–74.

Mel'nyk, T.Yu. (2015). Theoretical aspects of analytical support of control of profit distribution of the enterprise. Naukovyj visnyk Khersons'koho derzhavnoho universytetu, 12.2, 201–205 [in Ukrainian]

National regulation (standard) of accounting 1 "General requirements for financial reporting". (2013). NP(S)BO 1 from 7th February 2013, Ministry of Finance of Ukraine. Kyiv: Derzhstandart Ukraine. URL: http://zakon4.rada.gov.ua/laws/show/z0336-13

Pidhirna, V.S. (2014). Theoretical and methodological principles of distribution and use of profits of economic entities. Ekonomichnyj forum, 4, 241–248 [in Ukrainian]

Slavkova, O.P. & Fontalina, K.M. (2018). Problematic issues of retained earnings accounting. Pryazovs'kyj ekonomichnyj visnyk, 5(10), 424–428 [in Ukrainian]

Sobchenko, T.S. & Hnes', O.P. (2017). Accounting and analytical support for managing the financial results of small businesses. Molodyj vchenyj, 10(50), 1054–1059. [in Ukrainian]

Article views: 159
PDF Downloads: 127
Published
2022-10-25
How to Cite
Onyshchenko, O., & Solodkov, D. (2022). FORMATION OF THE FINANCIAL RESULTS AND PROFIT MANAGEMENT: DISTRIBUTION AND USE . Economy and Society, (44). https://doi.org/10.32782/2524-0072/2022-44-72
Section
ACCOUNTING AND TAXATION

Most read articles by the same author(s)