В современной экономике все предприятия There are cash received from the sale of goods, works or services. But members of society must also have their income from the activities of the company. For these purposes, there is a special balance sheet - retained earnings.
Profit and loss of the company
Любое предприятие начинает свою деятельность для income. Members of the company expect to have additional money, regardless of whether they will work in this enterprise or not. Retained earnings in the balance sheet - this is the remaining income of the company after paying all debts to suppliers and employees of the company.
Однако при осуществлении предпринимательской the activity of the organization may come at a loss, for which members of the company are also responsible The tax code allows you to increase the net assets of the enterprise by means of shareholders (participants), and repayment of uncovered loss is also appropriate. The help of shareholders (participants) is vital at the very moment when the company incurs losses, since it threatens with bankruptcy and liquidation of the enterprise. Therefore, the cover owners of the loss acts as the most frequent case of recovery of the value of the net assets of the enterprise.
Balance sheet: retained earnings in the organization’s equity
To clarify this aspect, we turn toAccounting regulations governing the procedure for controlling financial issues in enterprises. In accordance with paragraph 66 of the PBU, retained earnings in the balance sheet are the company's own capital. It is formed not due to the contributions of participants, but due to the efforts of the enterprise itself, while being a factor in the growth of the welfare of the organization and its owners. In other words, retained earnings are a source of own capital not of external, but of internal origin.
Profit earned may be spent ondividend distribution between participants or remain at the enterprise in the form of additional capital, cash or fixed assets for the further development of activities and repayment of losses.
What is retained earnings
The Retained Profit / Loss Account is required to store information about the presence and movement of the amount of a given profit or loss of a company on the balance sheet of an enterprise.
It is worth noting that the source of payment of tax onprofit, tax sanctions is the score 99 after the formation of the financial result. Retained earnings in the balance is a source of dividend payments, contributions to the funds. In this case we are talking about the use of net profit.
When they say that the income tax dividendspaid at the expense of net profit, meaning by the latter profit after tax, this is also true. However, in accounting, the formation of net profit during the reporting period and its use with the help of an account on the accounting of retained earnings for the statutory goals of the enterprise are clearly divided.
Disposal of retained earnings
The right to dispose of net profit belongsowners of the enterprise, which is reflected in the relevant standards. The owners of the company have the right to spend retained earnings for various purposes, such as encouraging employees, charity, financing social events, holding cultural and sports events, etc. However, in most cases this profit goes either to dividends or to improve and develop a business.
Permit document for posting onprofit distribution is the protocol of the participants of the enterprise. In addition, records can be made on the basis of the provisions of the statute, if they have determined the direction of use of net profit and established standards for allocations. Any other expenses that bypass the will of the owners of the enterprise (including the so-called costs that do not reduce taxable income) cannot be written off from the account of retained earnings / loss.
Profit is distributed at annualizedmeeting of participants. If an enterprise distributes net profit for 2013, then postings are made in 2014, when a meeting of participants (shareholders) is held.
Retained earnings: balance sheet and postings
So, retained earnings in the balance sheet areactive-passive account. It forms retained (by nature - net, that is, obtained after tax) profits or uncovered loss. The debit of account 84 reduces the equity capital of the enterprise, the credit balance, respectively, increases. The right to dispose of net profit belongs to the owners of the enterprise. Of all the other components of equity capital, profit is the most free to use, since the list of directions for its spending is open. However, it must be remembered that this does not give grounds for the enterprise to freely, bypassing the will of the shareholders (participants), to spend it on purposes not provided for by the charter and other documents of the enterprise.
In the analytical account to the account 84 should be openseparate sub-accounts, among which are “Dividend accrual”, “Allocation to reserve capital”, “Revaluation of fixed assets”, etc. It is also rational to take into account profit (loss) of the reporting year and retained earnings of the last year on separate sub-accounts. In addition, on account 84 (since the chart of accounts is not provided for a separate balance sheet account) various funds created from net profit on the initiative of an enterprise can be taken into account: a special fund for the privatization of workers, a development fund, etc.
Retained earnings as a source of industrial development
Большой интерес представляет тот факт, что Минфин recommends, in the framework of analytical accounting, to separately reflect the part of the net profit that is directed to the development of the enterprise. As you know, the acquisition of fixed assets is made at the expense of property (cash), and there are no obligatory entries at the direction of the source. This posting does not lead to a decrease in retained earnings and the size of the company's net assets. An enterprise can easily prove that fixed assets were acquired solely from profit, and not by any other means. It is also possible to identify sources of financing based on an analysis of the structure of the balance sheet. This analysis implies that investments are primarily made at the expense of net profit, at the second - at the expense of long-term loans, and at the third - at the expense of other payables.
The best profit position on the balance sheet
Предприятию выгоднее сохранять собственный capital is in net profit, and not in authorized or additional capital. Profit can quickly restore losses, replenish the authorized capital, if its minimum size is legally increased, to increase other funds as part of its own capital. The higher the size of retained earnings, the farther the enterprise is from the threat of bankruptcy, and the more optimistic its prospects are.
84 account in the hands of the chief accountant
In conclusion, it should be noted thatretained earnings is completely in the hands of the chief accountant. Yes, no one, except the participants of the company, can dispose of the property of the company, but only from the chief accountant depends on the calculation of the profit of the organization, the correctness of the accrual of certain amounts and double entry in the accounts. Only the chief accountant can tell the members of the public how to act in a given situation, where and what amounts of retained earnings should be sent.
