And losses of the enterprise ", is one of the most important forms of financial reporting. With its help, the characteristic features of the financial result obtained from the activities of companies and the organization for a certain one are determined. Also, based on Form No. 2, you can trace how this or that amount of profit was received or losses.

Based on the information provided in Form No. 2, you can:

• to assess the change in the income and expenses of the enterprise for this reporting period in comparison with the previous one;
• to analyze the composition, structure and dynamics of gross profit, profit from sales and net profit;
• to analyze the factors of formation of the final financial results of the enterprise.

According to the general results of the analysis, it is possible to determine all possible ways to increase the level of profit of the enterprise and its profitability indicators.

One of the main tasks of Form No. 2 is to provide truthful information that will allow its users to draw certain conclusions about the effectiveness of the activities of this enterprise, to determine whether investments in its development will be profitable.

The profit and loss statement contains information on the following indicators:

• volumes of book profits or losses from the sale of goods and services;
• income from operating activities;
• income and expenses from other activities not related to the sale of products;
• costs of organizations associated with the production of products, goods, services;
• managerial and commercial nature;
• the amount of tax on;
• the company's net profit.

As you can see, the profit and loss statement is considered one of the main sources, which is used to analyze the indicators of the company's profitability, operating profitability, and also to determine the amount of net profit.

Profit and loss statement formats and their classification

Most countries of the world use not one option for generating a report, but several at once. The general classification of such options is shown in Fig. one.

Rice. 1. General classification of Form No. 2 formats

Experts have identified several classification designations:

• on approaches to the distribution of costs;
• according to the form of indicators location;
• by methods related to obtaining financial results;
• on options for justifying the difference between income and costs.

The cost allocation approach highlights natural and functional formats.

According to natural formats all costs are displayed as material costs, labor costs, accrued depreciation, etc.

By functional format all expenses are grouped into classes in accordance with their functions - implementation, costs of a commercial and administrative nature, etc.

According to the form of indicators arrangement, sequential, parallel and matrix formats of Form No. 2 are distinguished.

Serial form proposes to record all items from top to bottom, that is - income, costs, financial results.

With parallel format all expenses of the enterprise are displayed on the left side, and income - on the right. Financial results are displayed on the side where there is an advantage.

Matrix or checkerboard format involves the reflection of income and costs in columns and rows, respectively.

According to the methods of obtaining financial results, the forms are divided into one-step and multi-step.

One step methods are based on determining only the main indicators of the financial result of the enterprise, and multi-stage- on the calculation of intermediate.

According to the options for justifying the difference between income and costs, the forms of a complete and balanced income statement were identified.

Full form shows the total amount of income and expenses received, and balanced form- calculates the difference between income and expenses.

As you can see, financial reporting is considered one of the main components of the information base for assessing the financial condition of enterprises. Of considerable importance is the "Profit and Loss Statement" (Form No. 2), since with the help of its indicators it is possible to determine the activities of companies and organizations.

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In this article, I will talk about how to design an income statement. After reading the article, you will be able to create a statement of financial results, even if you initially only have a balance sheet of the enterprise.

Since the creation of an income statement is a rather lengthy process, I have developed a free program that allows you to make a balance sheet and income statement automatically - here: choose a balance sheet and income statement. The principles by which the reporting is developed are set out in this article.

For financial and economic diplomas and practice reports, perhaps the most important documents are the balance sheet and profit and loss statement (financial statement).

But at enterprises very often no documents are given to the student, and you have to look for suitable reporting on the Internet, and then try to customize it for your organization.

Outwardly, the new form can be immediately distinguished from the old one by line numbers: in the old type, the numbers are 210, and in the new 2110. The essence has not changed much. In parentheses are negative values ​​(more precisely, the values ​​that need to be subtracted from income). Let's look at an example further.

The first thing to start with is to decide how much revenue to write in this report - line 2110.

We take the average value of the cost of goods of the organization. Suppose an organization sells panel houses, the cost is 700 thousand rubles. each.

Multiply by the number of sales per year. We take this value arbitrarily. If the company is very small, you can multiply by 12. Suppose that 12 such houses are sold in just a year (if the average, we can assume that one house every two weeks). We get 700 * 12 = 8400 thousand rubles.

Everything, the proceeds are ready.

Now the cost of sales is line 2120. If you want your business to be successful, take the cost of approximately 70% of revenue. The higher the cost of sales, the worse the financial result will be. future state of the organization. Let's take 85% as an example. 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 management expenses (2220) for small businesses can be taken equal to zero (because they are often not singled out separately), but if you want, you can take 10 percent of revenue for them. For example, I will take 5% of the proceeds for commercial and management expenses: 8400 * 0.05 \u003d 420 thousand rubles.

Profit (or loss) from sales (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 to have some figure here, take 5-15 percent of the proceeds. In the example, this value is zero. If this figure is greater than zero, then in the balance sheet, in non-current assets, add a value to the line "Profitable investments in tangible assets" 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 values ​​in the balance sheet of the enterprise (not in this report) (on the left side of the balance sheet). You just need to take the value of these investments from the balance and multiply by 0.15-0.2. That is, the company allegedly gave other organizations its assets at 15-20% per year. These percentages are reflected in this line. Let's put 0 here 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 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

Permanent tax liabilities (or assets) (2421) are best taken to be zero. Or about 10% of the amount of income tax.

Change in deferred tax liabilities (2430) and change in deferred tax assets (2450) are also best taken to be 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 net profit and this issue will have to be studied separately.

Actually, what we get:

Revenue	2110	8400
Cost of sales	2120	(7140)
Gross profit (loss)	2100	1260
Selling expenses	2210	(420)
Management 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, three years of such data are required. If you want the company to improve its activities, then you need to increase revenue (by 5-15 percent each year), the rest is recalculated according to the already shown algorithm. It is best to take multipliers that are not even (such as 5%, 10%), but approximate ones - it will be more natural (for example, 7.81%).

These multipliers should be at least slightly different each year! Otherwise, all the proportions of the articles will be the same and it will give you away.

Sincerely, Alexander Krylov,

Materials for final qualifying (diploma, bachelor's, master's), term papers and reports on practice in economics, financial management and analysis:

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10 thoughts on “How to come up with an income statement”

Hello, I have a question regarding line 2410 (Current income tax) when calculating where the income tax rate comes from? or is it approximate?

• Hello Natalia.
  Depending on what system of taxation at the enterprise, there may be such 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 pre-tax profit for the simplified tax system 15% from the “income minus expenses” base.
  Amendment "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 a liability, it is best to indicate either an increase in retained earnings (it 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 objects are bought in addition every year.

  The appearance of VA may not be reflected in the income statement in any way. There will be so many changes that it is easier not to change anything at all than to think about what changes will be. If you increase VA percent by 30 of the existing level of the balance sheet total, then, in my opinion, you can not show fundamental changes in financial results and in the balance sheet at all.

  A draft of an article on balance preparation can be found here:. Perhaps the comments on it will be useful to you.

  • Thanks for the answer. And here's the moment: in the balance of long-term borrowed funds 2325, short-term - 300, in the form of 2 percent payable only 21. why so little? this is real? you wrote that this is about 15%, but here it is much less (moreover, the real balance is not invented). and one more thing: net profit for the reporting period is 379, undistributed at the end of the previous period 89, respectively, at the end of the reporting period, undistributed should be 379 + 89 = 468, and in fact it is 451 in the balance sheet, where did 17 more go? the funds are empty, in addition to this, in the capitals and reserves, only the authorized 10 thousand rubles.

    • Part of the interest payable may be included in the cost. And the other part - in the composition of 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 - gone somewhere else)

The profit and loss statement or the so-called income statement is considered one of the most useful ways of accounting within any enterprise. This report characterizes in detail the result of the financial work of the enterprise in the reporting period. Reporting is of particular interest not only to the owner of the organization, but also to the tax authorities.

What is profit and loss reporting?

Profit and loss reporting shows not only the financial performance of the enterprise, but also how certain funds were received and spent. This report allows you to analyze the performance of the organization. It is considered along with the balance sheet as one of the most important sources for analyzing the economic situation in the company.

In addition, the report can be used for the following purposes:

1. Comparative analysis of the current reporting period with the past to identify positive and negative trends.
2. Determination of the factors influencing the final financial result of the activity.
3. Studying the structure, composition, as well as dynamics, income from various sales, etc.
4. Determining the effectiveness of the activities of an organization, as well as the level of benefits of investing in this enterprise.

Profit or loss reporting is drawn up in accordance with Form No. 2 established by the Ministry of Finance. Knowledge of this form is mandatory for all accountants and financiers.

Profit and Loss Statement Structure

The report structure contains several components:

1. Income . This article of the report consists of any kind of contributions that increase the company's budget, not taking into account the contributions of the owners. One of the most important items in income is revenue. Revenue includes rent, sales, interest and dividends, service fees and royalties. Other types of income essentially differ little from revenue and serve to increase the company's budget.
2. Costs . Expenses include all operations that reduce the economic benefits of the enterprise due to the waste of fixed capital in one direction or another. Expenses include various losses, as well as natural costs formed during the operation of the enterprise.
3. Gross profit . Calculated through a deduction from the proceeds from the sale of the cost of goods sold. The remaining expenses are deducted from the gross profit received, which are not included in the cost of production.

The document template looks like this:

Thus, the holistic structure of the report includes income and expenses with all their items, as well as detailed calculations to determine the effectiveness of the enterprise.

How to prepare a profit and loss statement?

Sometimes in business documents, a long nomenclature is specially replaced with this - capacious, short and clear - form No. 2. It must include the following articles:

1. Income statement with expenses for ordinary activities . According to the direct nature of the enterprise's activities, it itself declares which of the income and expenses are related to ordinary activities and which are not. For example, an ordinary activity can be considered one, the share of income from which is more than 5% of the total amount of income.
2. Other income and expenses . Operating, non-operating and extraordinary income or expenses are attributed to such income and expenses. At the same time, it is important to take into account that non-operating and operating expenses and income are reflected in one account (91), and extraordinary on the other (99).
3. Definition of financial result . This article reflects directly the calculations that determine the “net” income of the enterprise or the loss from sales, depending on the efficiency of work. This calculation is made before taxation, therefore it does not show completely accurate data. The financial result is indicated under line 050.
4. Income tax calculations . Here you must specify the amount of tax on the current. It is determined according to the tax accounting for the reporting period. In accounting, the indicated amount should be reflected in account 68.
5. Calculation of net profit or loss . In this case, the accountant will need to indicate the net profit or loss, taking into account various nuances for the billing period. The form also provides for the writing of net profit or loss for the past year for comparative analysis.
6. reference Information . As a reference, the Ministry of Finance recommends indicating the amount of the organization's permanent tax liabilities, as well as the amount of basic and diluted loss (or profit) per share in accordance with the current economic situation.

You can significantly simplify the procedure for filling out a report based on the sample filling offered by the Ministry of Finance:

Profit and loss statement under IFRS

IFRS is an international financial reporting standard. Novice accountants may confuse this type of reporting with accounting reporting standards (for example, Russian PBU). IFRS is a standard that reflects the final stage of accounting work on a report. IFRS uses two options for the presentation of expenses, according to which expenses are broken down into subclasses. Let's look at these methods in more detail:

Nature of costs

The criterion of the nature of costs involves the pooling of costs in accordance with the nature and the exclusion of further redistribution according to the purpose within the organization. This method is considered the simplest due to the absence of the need to allocate costs.

According to this method, the classification includes:

• revenue;
• Other income;
• changes in the amount of leftover manufactured products or work in progress;
• raw materials and materials that were used;
• employee costs;
• depreciation and other expenses;
• general expenses;
• calculation results.

By purpose of costs

A more complex method involving a significant amount of paperwork. Expenses in this case will need to be divided into subclasses according to their purpose as cost of sales. The distribution is quite subjective, which is one of the very serious shortcomings of the method. However, it allows you to get more useful information than the previous method.

The classification will then include:

• revenue;
• cost of sales;
• gross profit with other income;
• costs and expenses, including administrative;
• final net income.

Russian practice provides for the classification of costs precisely according to their functional purpose as the most effective for analyzing the activities of an enterprise.

Video: Income Statement

A complex topic in simple terms: how to draw up a profit and loss statement, and what is it for? Answers to these questions will be given by Stanislav Furta, a well-known business coach:

The financial statements also include filling out a profit and loss statement in accordance with Form No. 2. It will allow you to control the effectiveness of business activities.

The profit and loss statement is compiled on the basis of changes in the order of the Ministry of Finance dated September 18, 2006 No. 115-116n. Where terms such as "Operating income and expenses", "Non-operating income and expenses", "Extraordinary income and expenses" are summarized with "Other income and expenses".

The indicators of Form No. 2 “Profit and Loss Statement” are filled out on the basis of analytical data for accounts 90 “Sales”, 91 “Other income and expenses”, 99 “Profits and losses”, which are contained, respectively, in order journals No. 11.13, 15 with a journal-order form of accounting or in registers similar in purpose with other forms of accounting.

Before filling out the income statement, you need to remember the basic rules. First, all data must be presented on an accrual basis from January 1 to December 31, 2007 inclusive. At the same time, in column 3 there should be turnovers on accounts for 2007, and in column 4 - turnovers in 2006. The second rule is that profits should not be credited against losses (and vice versa). The third rule is negative values ​​and those indicators that the accountant must subtract are written in parentheses.

Income and expenses from ordinary activities

Proceeds (net) from the sale of goods, products, works, services (net of value added tax, excises and similar obligatory payments) (line 010).

It records the income from the ordinary activities of the enterprise. First of all, it is revenue for products and goods, as well as for work performed and services rendered. When calculating revenue, you need to take into account the amount differences. These differences occur when goods, the price of which is expressed in conventional units, are shipped before payment for them is received. If the contract with the buyer provides for various discounts or markups, then they must also be taken into account when determining the revenue. In addition, it is necessary to take into account the interest due from the buyer for installments. This procedure is determined by the Accounting Regulation "Income of the organization" (PBU 9/99), approved by order of the Ministry of Finance of Russia dated May 6, 1999 No. 32n.

Revenue is reflected without VAT, excises, export duties, since, according to paragraph 3 of PBU 9/99, these taxes are not income.

Also, the money that the intermediary received from buyers for goods belonging to the committent (principal or trustee) is not considered income. Advances received and amounts received as collateral, earnest money, etc. are not recognized as income. Amounts received in repayment of a loan or loan. In the standard form of the Report, revenue is reflected in full, that is, without breakdowns. At the same time, if the company sees fit, you can list the income and expenses from each business. To do this, form No. 2 must be supplemented with new lines (011, 012, etc.). In this case, only significant income is deciphered. Paragraph 18.1 of PBU 9/99 “Income of the organization” states that the revenue that for the reporting period is 5 percent or more of the total income of the organization is considered significant.

This rule also applies to expenses. Expenses corresponding to each type of allocated income must be show on separate lines.

Understanding what relates to the income of the organization, you need to pay attention to one nuance. We are talking about the rent and the amounts received in accordance with license agreements. In this case, the question arises - how to deal with these funds: include them in income from ordinary activities and reflect on line 010, or attribute them to other income and show on line 090? Paragraph 4 of PBU 9/99 states that the organization has the right to independently decide what to do.

On line 010 you need to specify:

• - in column 3 - 245867000 rubles;
• - in column 4 - 156170000 rubles.

Cost of sold goods, products, works, services (line 020).

Here indicate the amount of expenses for ordinary activities for the reporting period. This indicator is indicated in parentheses.

According to paragraph 8 of PBU 10/99 "Expenses of the organization", the expenses for ordinary activities are divided into:

• - material;
• - labor costs;
• - deductions for social needs;
• - depreciation;
• - others.

The following are not considered expenses of the company and are not reflected in the Report:

• - amounts from the sale of goods transferred by the intermediary in favor of the committent (principal, principal);
• - expenses for the acquisition of non-current assets (fixed assets, intangible assets, construction in progress, etc.);
• - amounts transferred in the order of prepayment of material assets, works or services;
• - amounts given as a deposit;
• - amounts transferred to repay a loan or loan previously received by the company.

On this line, the accountant brings expenses for ordinary activities, the proceeds from which are reflected in line 010 of the Profit and Loss Statement. According to paragraph 5 of PBU 10/99, these are the costs of manufacturing and selling products, purchasing and selling goods, as well as costs associated with the performance of work and the provision of services.

When filling out this line, there is one nuance that is interesting for the accountant of an organization that does not immediately write off management and commercial expenses, but distributes them between sold and remaining products. So, the share of such expenses attributable to the products sold is also given in line 020.

For instance.

The cost of goods sold, products, works and services of Maslovo LLC in 2007 amounted to 230,722,000 rubles, and in 2006 it amounted to 126,647,000 rubles.

In the report of Maslovo LLC, in line 020, in parentheses, the cost of manufactured products, goods sold and services rendered should be reflected:

• - in column 3 - 230722000 rubles.
• - in column 4 - 126647000 rubles.

Gross profit (line 029).

This is an intermediate result. It shows the gross profit of the company. It is equal to the difference between revenue (line 010) and cost (line 020).

On line 029 Maslovo LLC must indicate the following amounts:

• - in column 3 - 15145000 rubles. (245867000 - 230722000);
• - in column 4 - 29523000 rubles. (156170000 - 126647000).

Selling expenses (line 030).

This line contains the costs associated with the sale of products. For example, these are the costs of advertising, storage, transportation of products.

Paragraph 9 of PBU 10/99 allows you to write off business expenses in two ways. The first is to distribute them between sold and remaining products. That is, all collected costs are written off to the cost of production by such a posting:

Dt 20 Kt 44 - business expenses are written off to the cost of manufactured products.

Then, part of the commercial expenses attributable to the sold products is written off from the credit of account 43 to the debit of account 90. In this case, line 030 is not filled out.

The second way is to include all commercial expenses in the cost of products sold in the reporting period. This makes a record:

Dt 90 sub-account "Cost of sales" Kt 44 - business expenses are written off to the cost of goods sold.

And line 030 is filled accordingly.

Let's continue our example.

The expenses of OOO Maslovo for storage and delivery of products in 2005 amounted to 3,310,000 rubles, and in 2004 - 2,062,000 rubles.

On line 030, the accountant of Maslovo LLC must write down the following amounts in parentheses:

• - in column 3 - 3310000 rubles;
• - in column 4 - 2062000 rubles.

Administrative expenses (line 040).

Here are the general expenses of the enterprise. These costs include, in particular:

• - labor costs of administrative staff;
• - expenses for training and retraining of personnel;
• - expenses for the maintenance of property of general economic purpose;
• - the cost of stationery and other materials and inventory used for management needs, etc.

Administrative expenses are written off to the cost of production in the same way as commercial expenses. That is, either all at once - then the accountant must fill in line 040, or in proportion to the share of products sold - in this case, the entry is made on line 020, line 040 in this case remains empty. In our case, line 040 is empty.

Profit (loss) from sales (050).

Line 050 indicates the financial result from the sale of products (goods, works, services). You can get it if the sales proceeds (line 010) subtract the cost of goods sold: goods (child 020), commercial (line 030), and management (line 040) expenses. The same result will be if from gross profit (line 029) subtract selling and administrative expenses. If the result is a loss, then its amount must be shown in the Report in parentheses.

We continue our example:

On line 050, the accountant of Maslovo LLC indicates the following values:

• - in column 3 - 11835000 rubles. (14145000 - 3310000);
• - in column 4 - 27461000 rubles. (29523000 - 2062000).

To fill in the section "Income and expenses from ordinary activities" of the Profit and Loss Statement, you need to know where to get the information and information for this. Consider the sources of information for completing this section of the Report in Table 4.

Table 4

Sources of information for completing this section of the Report

Account line	Line code	How to generate indicators of the Profit and Loss Statement
Proceeds (net) from the sale of goods, products, works, services (net of VAT, excise duty and similar obligatory payments)		The difference between the credit turnover of the sub-account "Revenue" of account 90 and the debit turnover of the sub-accounts "VAT", "Excise taxes", "Export duties" of account 90
Cost of sold goods, products, works, services		Debit turnover on the sub-account "Cost of sales" of account 90 in correspondence with accounts 20,41,43 and 45. Organizations that use account 40 to account for production costs must adjust the debit turnover on the sub-account "Cost of sales" of account 90 for the difference between the actual and standard cost of production. If the actual cost is higher than the standard cost, then the excess amount is added to the debit turnover on the sub-account "Cost of sales", and if it is lower, it is deducted from it.
Gross profit		Difference between lines 10 and 020
Selling expenses		The debit turnover of the sub-account "Cost of sales" of account 90 in correspondence with account 44
Management expenses		The debit turnover of the sub-account "Cost of sales" of account 90 in correspondence with account 26
Profit (loss) from sales		Subtract lines 030 and 040 from line 029

Other income and expenses

Interest receivable (line 060).

On this line, organizations give the interest that they are owed. In this case, we are talking about interest on government bonds and securities, bank deposits and deposits, as well as on loans granted. Please note: interest on the loan is calculated at the end of each reporting period in accordance with the terms of the agreement (clause 16 of PBU 9/99).

We continue our example.

In 2007, Maslovo LLC did not lend to anyone and did not lend to anyone. The same situation was in 2006. Thus, on line 060, a dash is placed in both columns.

Interest payable (line 070).

This line records the interest that the company must pay on bonds, shares, loans and borrowings. At the same time, interest must be accrued every month while the company uses borrowed funds, regardless of when these funds are paid. The exception is payments on loans taken to purchase investment assets. Such interest is taken into account in the cost of the purchased property until the moment of capitalization. If the interest is accrued after the investment asset was taken into account, in this case they are related to other expenses and are also reflected in line 070. Note that interest on borrowed funds that are not used to purchase investment assets can be written off at a time.

Suppose that in 2007 OOO Maslovo took out a loan for the purchase of meat processing equipment. For the year, the company calculated interest in the amount of 2378000 rubles, and in 2006. in the amount of 2747000 rubles. Line 070 states in parentheses:

• - in column 3 - 2378000 rubles;
• - in column 4 - 2,747,000 rubles.

(line 080).

Here they show income from participation in the authorized capital of other organizations (for example, dividends on shares, etc.). Organizations can also work together by pooling their contributions. To do this, they enter into a simple partnership agreement. At the same time, income from joint activities is accrued on the day when the comrades distribute the profits received among themselves. This amount is reflected in line 080 of the Report. In 2007 and 2006, the farm did not participate in other organizations and did not enter into a “simple partnership” agreement with anyone, therefore we put a dash on line 080.

Other income (line 090).

This line contains operating income that was not presented in the previous lines of the Report. First of all, these are income from renting out property (if the company receives such income irregularly), sales of fixed assets, intangible assets, materials, etc. - the profit that the organization received under a simple partnership agreement, etc. As well as concepts such as operating, non-operating and extraordinary income.

This line of the Report reflects, in particular, income (excluding VAT) from the lease of property, from the sale of other property of the company (fixed assets, intangible assets, capital construction in progress or materials), as well as income from the liquidation of fixed assets. The enterprise had income from the sale of agricultural machinery, which amounted to

• - in column 3 - 28,717,000 rubles;
• - in column 4 - 9528000 rubles.

Other expenses (line 100).

Here are indicated those operating expenses that were not included in the previous expense items of the Report. Other expenses, in particular, now include the costs of:

• - lease of property;
• - from writing off other property of the company (fixed assets, intangible assets, materials, etc.);
• - payment for bank services;
• - to pay interest on loans and borrowings;
• - recognized fines, penalties, forfeits for violation of the terms of contracts;
• - losses of previous years identified in the reporting year;
• - negative exchange rate differences;
• - losses reimbursed to other firms, etc.

Suppose for 2005 the company accrued 50,000 rubles. property tax and 40,000 rubles. advertising tax.

In 2007, the organization made other expenses. It turns out that on line 100, in parentheses, the accountant of Maslovo LLC must write down:

• - in column 3 - 905,000 rubles;
• - in column 4 -2231000.

Lines 120 ( non-operating income) and 130 ( non-operating expenses) were excluded from the Profit and Loss Statement as independent lines and were included in lines 090 (other income) and 100 (other expenses), respectively, by order of the Ministry of Finance of Russia dated September 18, 2006 No. 115n.

As well as for filling out the first section of the Profit and Loss Statement, to fill out the “Other income and expenses” section, the accountant needs to know where to get the information for this. Let's draw up the main sources of information for filling in the second section of the Report in Table 5.

Table 5

Main sources of information for completing the second section of the Report

Report line	Line code
Interest receivable		Credit turnover of sub-accounts of account 91, which shows interest receivable
Percentage to be paid		Debit turnover of sub-accounts of account 91, which reflects interest payable
Income from participation in other organizations		Credit turnover of sub-accounts of account 91, which shows the amount of income from equity participation in other organizations
Other income		Credit turnover on sub-accounts of account 91, where other operating income is indicated, minus the amount of VAT
other expenses		Debit turnover on sub-accounts of account 91, which reflect other operating expenses

Profit (loss) before tax (line 140)

This line shows the financial result of the organization for the year. It is calculated according to the income statement. This is nothing but "accounting" profit or "accounting loss".

Let's continue our example.

On line 140, the accountant must indicate:

• - in column 3 -37269000 rubles. (11835000 - 2378000 + 28717000 - 905000);
• - in column 4 - 332011000 rubles. (27461000 - 2747000 + 9528000 -2231000).

Deferred tax assets (line 141).

This line is intended for deferred tax assets that were formed in the organization's accounting for 2007. From January 1, 2003, PBU 18/02 "Accounting for income tax calculations" obliges to calculate and show them. This PBU was approved by order of the Ministry of Finance of Russia dated November 19, 2002 No. 114n.

The amount of deferred tax assets is obtained by multiplying the amount of so-called deductible temporary differences by the income tax rate. And deductible differences, in turn, are formed when:

• - the amount of depreciation calculated in accounting for the reporting period exceeds that calculated according to the rules of tax accounting;
• - commercial and administrative expenses in accounting and for taxation purposes are written off in different ways;
• - a loss is carried forward, which will reduce taxable income in subsequent reporting periods;
• - overpayment of income tax is not returned to the organization, but is credited against future payments;
• - an enterprise using the cash method in accounting includes in the costs the cost of materials that have not yet been paid, etc.

So, line 141 of the Report will contain the difference between debit and credit turnover on account 09. There can be two situations here. If the resulting value is positive, then the difference (that is, the amount of accrued assets minus redeemed and written off) is added to profit before tax. If, on the contrary, it is negative, then the value of assets in the reporting period must be deducted from profit.

Let's continue our example and show how they are reflected in the income statement. All calculations will be conditional, since Maslovo LLC did not fill in lines 141 and 142.

Suppose that in 2007 Maslovo LLC had 2,000 rubles of deferred tax assets. (positive difference between the debit and credit turnover of account 09), respectively, in 2006 the amount of deferred tax assets amounted to 2500 rubles. On line 141 “Deferred tax assets”, the accountant of Maslovo LLC must record:

• - in column 3 - 2000 rubles;
• - in column 4 - 2500 rubles.

(line 142).

Deferred tax liabilities are determined by multiplying the amount of temporary differences by the income tax rate (clause 15 of PBU 18/02). Taxable temporary differences in accounting arise when:

• - the amount of depreciation accrued in tax accounting for the reporting period is greater than that calculated according to accounting rules;
• - you accrued interest on loans issued monthly, and the debtor repaid them at a time. In this case, the difference arises if your firm uses the cash basis;
• - interest on loans and sum differences in tax accounting are included in non-operating expenses, and in accounting - in the cost of fixed assets or materials;
• - in accounting, expenses are reflected as part of deferred expenses, and in tax accounting they are written off immediately.

As with assets, deferred tax liabilities can be either deducted from profit (loss) before tax or added to. As in the case of assets, the Report includes the difference between the turnovers on account 77, if the credit turnover (where the accrual is reflected) exceeds the debit turnover (where the liability write-off is shown), then this indicator will reduce profit. If it is the other way around, it will increase.

Suppose that in 2007 Maslovo LLC had 8,000 rubles of deferred tax liabilities. (positive difference between the credit and debit turnover of account 77), respectively, in 2006, 7000 rubles. (All figures given are provisional). That is, the accountant of Maslovo LLC will write down on line 142:

• - in column 3 - 8000 rubles. (in parentheses);
• - in column 4 - 7000 rubles.

Current income tax (line 150).

Paragraph 21 of PBU 18/02 provides a formula for calculating the current income tax:

Conditional income tax expense (conditional income) + permanent tax liability (asset) + deferred tax asset - deferred tax liability = current income tax expense (income).

Conditional expense (income) is the "accounting" profit (or loss) from line 140 of the Report, multiplied by the income tax rate. Conditional income is accrued only if the organization has made a profit in tax accounting.

A permanent tax liability can be obtained by multiplying the permanent differences by the income tax rate. Such differences arise when expenses that are taken into account for accounting purposes are not included in expenses when calculating income tax. We are talking, say, about the amounts that the organization spent in excess of the norms established in the tax code of the Russian Federation. This applies to daily allowances, compensation for the use of personal vehicles, entertainment expenses, insurance costs.

There are also permanent tax assets. They also arise from constant differences. For example, if tax expenses are not accepted for accounting purposes. Unlike permanent tax liabilities, permanent tax assets in the reporting period reduce the accrued income tax. Since they did not exist either in 2007 or in 2006, we do not write anything.

Net profit (loss) of the reporting period (line 190).

Line 190 shows the net profit (loss) received for 2007. This is the final financial result of the company minus income tax.

To obtain net profit (line 190), from profit before tax (line 140) it is necessary to deduct the current income tax, adjusted for the amount of deferred tax liabilities and assets, as well as other payments to the budget (151).

On line 190 “Net profit (loss) of the reporting period” of the income statement, the accountant must indicate:

• - in column 3 - 36937000 rubles. (37269000-332000);
• - in column 4 - 32011000 rubles.

In table 6, we will consider the sources of information for filling in the "Other income and expenses" section.

Table 6

Information for filling in the section "Other income and expenses"

Report line	Line code	How to generate indicators for the income statement
Profit (loss) before tax		Line 050 + line 060 - line 070 + line 080 + line 090 - line 100 + line 120 - line 130
Deferred tax assets		The difference between the debit and credit turnover of account 09 (if the result is positive, it is added to line 140, if negative, it is subtracted)
Deferred tax liabilities		The difference between the credit and debit turnovers of account 77 (if the result is positive, it is subtracted from line 140, if negative, it is added)
Current income tax		Debit turnover on account 99 "Profit and Loss" in correspondence with sub-accounts of account 68, which reflect the calculations of income tax and penalties. This amount is adjusted for deferred tax assets and liabilities.
Other payments from profit
Net profit (loss) of the reporting period		Line 140 (+/-) line 141 (+/-) line 142 - line 150

Reference data

An organization must complete this section if it has permanent tax liabilities (assets) or if it pays dividends.

Permanent tax assets (liabilities) (line 200).

Permanent differences are formed when an organization incurs expenses that are recognized in accounting, but are not taken into account when calculating income tax. For example, the value of donated property. Or they are taken into account, but within the limits, while in accounting they are completely written off. For example, entertainment expenses, advertising costs, or compensation costs for the use of personal cars for business trips.

Multiplying this fixed difference by 24 percent results in a permanent tax liability. For reference, this value must be reflected in line 200 of the Report. The organization Maslovo LLC did not have such expenses either for 2007 or for 2006.

Basic earnings (loss) per share (line 210).

On this line, the accountant must show basic earnings (loss) per share. This is part of the profit of the reporting year, which is due to shareholders - owners of ordinary shares. To calculate this indicator, you need to divide the basic profit (loss) of the reporting period by the weighted average number of ordinary shares outstanding. Fill in this line only joint-stock companies. Limited liability companies put a dash on this line. This is the basic earnings (loss) per share. This is the part of the profit of the reporting period, which is due to the owners of ordinary shares. To calculate this indicator, you need to use the Guidelines for the disclosure of information on profit per share, which are approved by order of the Ministry of Finance of Russia dated March 21, 2000 No. 29n. Since Maslovo LLC is not a joint-stock company, the accountant does not fill out this line

Diluted earnings (loss) per share (line 220).

Here, the value of the so-called diluted earnings (loss) per share is given. This indicator reflects a possible decrease in the level of basic earnings per share in the next reporting period.

Breakdown of individual profits and losses.

This section lists the most significant non-operating income and expenses.

Line 230 reflects the accrued fines, penalties and forfeits for violation of the terms of business contracts. In our case:

• - in column 3 - a dash, because they are not
• - in column 5 - 26,000 rubles.

On line 240 indicate the profit (loss) of previous years, identified in the reporting year (the same applies to loss).

On line 250, the amounts of compensated losses are given.

Line 260 shows exchange rate differences.

On line 270, you need to record what amounts were transferred to the estimated reserves.

On line 280, write-off receivables and payables are presented, for which the limitation period has expired.

So, we have considered the procedure for compiling the Profit and Loss Statement. Since we took conditional values ​​​​of indicators, in table 7 we will consider how, based on the indicators calculated by us, to draw up a Profit and Loss Statement in accordance with the new form and with the recommendations of PBU 18/02.

Table 7

Profit and loss statement for 2007 Maslovo LLC

Indicator	During the reporting period	For the same period of the previous year
Name
Income and expenses from ordinary activities Revenue (net) from the sale of goods, products, works, services (net of VAT, excises and similar obligatory payments)
Cost of goods sold goods, products, works and services
Gross profit (line 010+020)
Selling expenses
Management expenses
Profit (loss) from sales (page 029+030+040)
Other income and expenses Interest receivable
Percentage to be paid
Income from participation in other organizations
Other income
other expenses
Profit (loss) before tax (line 50+60+70+80+90+100)
Deferred tax assets
Deferred tax liabilities
Current income tax
Other payments from profit
Net profit (retained earnings (loss) of the reporting period) (lines 140+141+142+150+151)
FOR REFERENCE Permanent tax liabilities (assets)
Basic earnings (loss) per share
Diluted earnings (loss) per share

So, based on the rules and principles of drawing up a profit and loss account, we have compiled a profit and loss account in the way that accounting requires with all the reforms carried out in this area.

This report interests the management of the enterprise most of all. For it is he who speaks about how the enterprise worked during the reporting period.

Consider the example of the simplest form:

The report has two main parts:

1. Profitable;

2. Consumables.

In the revenue part, from the sales volume of the enterprise for the reporting period (line 1), we subtract the cost of goods sold (line 2). We get the gross profit (line 3).

The expense part consists of fixed costs, the level of which does not directly depend on the volume of sales. (This rule is sometimes not strictly observed, but more on that later).

Expenditure items (lines 6 to 21) are indicated conditionally. The expense items in your report may differ, the main thing is that you understand what expenses are attributed to these items. And the list of these expenses should correspond to the analytics of account 92 (Fixed or administrative expenses).

The amount of income tax (line 23).

And the most important result: The amount of net profit. (Operating Profit - Income Tax). The result of the company's work for the reporting period. The amount of net profit on the income statement should be equal to.

The indicator "Net profit margin" (line 26) shows what share of net profit is contained in the total amount of sales of the enterprise for the reporting period.

A very important point! VAT and income statement

According to international standards, information in the profit and loss statement is reflected without VAT. Based on the logic that by removing this tax from the revenue and expenditure side, we get:

1. A more correct amount of net profit.

2. More correct figures for income and expenses, which in reality are overstated by the amount of this tax.

This is absolutely the right approach if your company honestly pays all taxes.

But in the conditions of Ukraine, enterprises often prefer to “optimize” the amounts that are payable to the budget as a value added tax. And VAT is already more similar in its essence not to a tax, but to another cost (absolutely normalized, the amount of which is determined either by the approval of the head of the enterprise, or by agreements with the tax office). Therefore, I believe that for our domestic conditions, it is much more correct to show information in the income statement with VAT, and indicate the tax itself as an expense under the item “Taxes” (line 12).

In this example, I have described the simplest form of income statement.

Let's look at two more. The difference between them is only in the grouping of expenses.

Option 2

Fixed costs are divided into two parts:

1. Marketing expenses. That is, expenses that are directly related to the sale of products, but were not included in the cost of production. The allocation of this type of costs allows you to more clearly understand the costs of selling products.

2. Operating expenses. All other fixed costs.

This option, compared with the first, has the advantage that sales costs are more clearly presented.

The downside is that some items of expenditure are divided between the two blocks.

For instance: salary or fuel costs, and in order to understand how much is spent in total on these items, you will have to add it up on a calculator.

3 option

Fixed costs are divided into three parts.

1. Marketing expenses. Similar to the second option

2. Operating expenses. This block contains the largest items of expenditure.