Generation and distribution of net income
Net profit - the profit that the disposal of enterprises after tax is the source of the consumption fund and the accumulation fund.
The concepts ordinary, extraordinary activities cover all events that could affect the financial results of the company.
By normal activities include any basic activities of the company and operations associated with it. By extreme activity include activity that is expected and does not occur often or regularly. This is a natural disaster, fire, accident. Loss from extraordinary events and their coverage through the insurance claim recorded in the financial results.
Profit or loss on financial operations is defined as the difference between the proceeds of the equity, income and other financial income and other financial expenses, losses and other expenses.
Profit (loss) from financial operations includes the results of investment, financial and other activities of the company during the reporting period. This section stated fact profit from these activities. Features of investment and financing activities reflected in other sections.
If the normal course of business the company received income, its amount reduced by the amount of accrued tax. If zaznannya loss accrued income tax added to the damage.
The financial result from ordinary activities adjusted for the amount of revenue, expenses and taxes from extraordinary events.
Net profit to be distributed based on the goals and objectives that are defined by the enterprise. The mechanism of profit distribution and proportions largely determine the interests of the participants and the process played itself affect its effectiveness. In this regard, concrete forms and methods of distribution of profit depends on many factors. This ownership level and technical condition of the company, the task of updating the range, profitability and financial stability, the availability of qualified management and others.
Each entity to decide the issue of setting proportions of distribution of net profit. Since the state provides for regulation of a reserve fund, as well as incentives to use net profits for the purposes of technical development, working capital and the maintenance of social facilities.
For the perspective of enterprise development priority is the distribution ratio of net income to consumption and savings. Within the consumption fund essential for investment attractiveness is the proportion of its fund allocation to dividend payments and other funds consumption.