Analysis of the profit or loss received by the enterprise according to the results of the reporting period should be based on the structure of this indicator. This will provide an opportunity for further cost planning and stabilization of income values. The dynamics of the indicator, its composition can be analyzed on the basis of the tax and accounting data of the enterprise.
The concept of income and expenses of the organization
Each commercial enterprise is created with the aim of generating income (economic benefit). To obtain a more significant amount of income, owners choose the type of activity, which, in their opinion, will ensure a stable and high level of profitability of the enterprise.
When forming the final result of work based on the results of the current reporting (interim or main period), each organization receives a loss or profit from the implementation of its core business. If the proceeds from the sale of goods and services exceed the amount invested in the production process, the enterprise has income for the analyzed period. If the costs of carrying out activities exceed the revenue received, then the company receives a
loss based on the results of work
. The determination of the income and loss of an enterprise is not unambiguous; using accounting operations, postings and primary documents, it is necessary to constantly analyze the structure of revenue and expenses. Both profit and loss are formed not only as a result of the organization’s main activity, there are a number of positions that influence the final economic result of a particular company, enterprise not in the direction chosen as the prevailing one. In accounting, management and tax accounting, these positions are reflected in the account “Other income and expenses” 91 and its sub-accounts.
Enterprise income structure
In accordance with the regulations of PBU 9/99, the company's income includes the increase in the economic benefit of the organization in connection with the receipt of assets (cash, current and non-current assets) and fulfillment of obligations, which leads to an increase in capital (the exception is the investment of owners through the authorized capital). The following revenues are not income:
- Advances from the buyer.
- Mortgaged property.
- The amount of taxes received, subject to transfer from budgets of different levels (excise taxes, VAT, duties, sales tax, etc.).
The income of each commercial enterprise can be divided into two integrated types: other and income from the main activity. The proceeds from the sale of manufactured (manufactured) products, services rendered, and works performed within the chosen area relate to income from the main line of business (account 90), and the following types of income may be attributed to others:
1. Operating (91 accounts):
- Realization of property.
- Interest on loans issued.
- Revenues from the lease of OS.
- Participation in the authorized capital of a third organization, etc.
2. Non-operating (91 accounts):
- Inventory surplus.
- Exchange differences, positive.
- Penalties received from counterparties.
- Overdue debt of the creditor organization (over 3 years).
3. The organization receives extraordinary income as a result of emergency situations (insurance payments, sale of parts of property affected by natural disasters, etc.).
Cost classification
Company expenses are classified according to the requirements of PBU 10/99. As expenses for accounting, a decrease in the economic indicator from the organization’s work due to the disposal of assets and the occurrence of situations associated with a decrease in capital is taken into account. Depending on the type and nature of occurrence, all expenses are divided into others and those received as a result of the implementation of the main activity. Costs related to the main line of business arise in the formation of costs for production, manufacture of products, in the process of providing services and work. If the organization as the main area of ​​work chose the lease of non-current assets, structures, machinery and equipment, then all expenses for this type relate to the main production costs. Other expenses are divided into:
1. Operating (91 accounts):
- Taxes transferred to various budgets.
- Payment for the use of borrowed (attracted) funds.
- Payment of banking services for maintaining accounts and providing information on them.
- Acquisition of non-current assets, disposal of fixed assets as a result of depreciation (physical or moral) or upon equipment failure (in case of impossibility of repair or modernization).
2. Non-operating (91 accounts):
- Penalties, forfeits, fines under contracts with counterparties (in case of violation by the enterprise of contractual obligations).
- Charity expenses.
- Overdue receivables (unpaid over 3 years).
- Foreign exchange differences are negative (in the presence of foreign exchange agreements).
- Deficiencies in excess of the rate of natural loss detected by the results of the inventory (in the absence of the guilty person).
3. The enterprise receives extraordinary expenses as a result of natural disasters, industrial accidents, fires, etc.
Accounting Reflection
The account 91 is intended to reflect in the accounting of the organization other, non-operating, operating expenses and income. The entire period preceding the annual report, other expenses and income of the organization are accumulated on the active-passive accounting 91 account, which in the chart of accounts (unified) accounting is called - “Other income and expenses ” . At the same time, correspondence of account 91 depends on the expense item and (or) income, analytical accounting should be carried out separately for each position on the basis of the organization’s accounting policy, this will greatly simplify the analysis of the composition of the indicator when evaluating the result of the enterprise. Subaccounts of the following plan must be opened to this account:
- 91/1 “Other income” - is intended to reflect all types (except emergency) income of the enterprise, not related to its core business.
- 91/2 “Other expenses” - this subaccount reflects other, non-current, operating expenses.
- 91/9 “Balance of other income and expenses” - account 91 is closed precisely through this subaccount.
Document flow on account 91
Postings to 91 accounts are made on the basis of well-formed primary documents, which are filled in by the accounting department for each specific type of expense and income, respectively. The following documents apply:
- The accounting certificate is used when crediting the reserves of unused payments as income (operating, non-operating, other), the calculation of deviations in the value of inventories accepted for accounting, and amounts of deferred income.
- The invoice is used when calculating interest on loans, loans, borrowings, income from participation in the joint (authorized capital) of the third enterprise, income from ownership of securities.
- An inventory, expenses and incomes on the basis of this document are carried out on account 91 in correspondence with active accounts for inventory accounting, finished goods, costly accounts of the main and auxiliary industries.
- The act of acceptance and transfer of fixed non-current assets when writing off the residual value of realized or written-off non-current assets.
- The estimated depreciation sheet is used to write off depreciation accrued on leased assets.
Reflection on a debit 91 accounts
According to the debit (account 91) of the posting, the following are executed: expenses for the maintenance and servicing of conserved units of property, disposal, write-off of fixed assets, operations with containers, losses of previous periods discovered in the current year, overdue receivables, penalties, penalties for failure to fulfill contractual liabilities, exchange differences, fees for the use of loans, credits, loans, costs of litigation, etc.
Account Correspondence
Debit | Credit |
91 “Other income and expenses” | 08, 07 Non-current assets |
10, 11, 15, 14 current assets |
20, 29, 23, 28 cost accounts, defective production |
41, 43, 45 Finished, shipped products |
50, 52, 59, 57, 51, 58, 55 cash |
60, 63, 66, 62, 67 settlements with counterparties, loans |
71, 76, 79, 73 various debtors and creditors, accountable persons |
96, 99, 98 financial results, reserves, funds |
Reflection of information on the credit of the account 91
Account 91, credit entries are made for the following types of business operations: income from the sale of fixed assets, proceeds from the gratuitous receipt of assets (current and non-current), fines received, penalties for contracts with counterparties, exchange differences, dividends received from participation in other partnerships, income from the provision of loans, loans, proceeds from the sale of intangible assets, innovative developments, the amount of overdue debts of creditors, etc.
Correspondence of possible accounts
Debit | Credit |
01, 04, 07, 02, 08, 03 NMA and OS | 91 “Other income and expenses” |
19, 16, 15, 14, 11, 10 Current assets, VAT |
21, 20, 28, 29, 23 Marriage, unit costs |
58, 59 reserves, investments |
66, 68, 69, 67, 60, 63 Settlements, loans |
70, 76, 73, 79, 71 Settlements with personnel and other creditors, debtors |
98, 99, 94 financial result, funds, losses and shortfalls of goods and materials |
The closing process of 91 accounts
For each reporting period, information on income and expenses of a non-operating nature is collected on credit and debit of 91 accounts. Before the closing of each reporting period, the sub-accounts turnover is summed up for all analytical positions. The turnover (debit) of the sub-account 91/2 “expenses” and the turnover (credit) of the sub-account 91/1 “income” are compared, the difference in the turnover shows the income or loss from other (non-core) activities of the organization for the current period. The amount received is the balance for sub-account 91/9. Every month 91/9 is transferred to the financial and economic result of the organization and should not be reflected in the annual balance sheet (it does not have an intermediate balance).
Closing 91 accounts, postings:
- Dt 91/9 Kt 99. Closed subaccount balance (income).
- D 99 K-91/9. Closed balance (loss).
The record is made on the basis of the compiled accounting statement, which reflects the process of closing sub-accounts of 91 accounts. At the same time, in open subaccounts, turnovers accumulate sequentially, during all reporting interim periods (month, quarter, half year).
The accounts (sub-accounts) of the 91st are finally closed at the end of each year, upon reforming the balance sheet, sequentially by the following business operations:
- D 91/1; Kt 91/9 closing of the sub-account “Other income”.
- D 91/9; in correspondence with Kt 91/2 closing of the sub-account “Other expenses”.
In the annual balance sheet account 91 and its subaccounts should not be reflected, all turns are closed on the financial result. When analyzing the income received for the analyzed period, non-operating and other income should be less than 5-6% of the total volume, in this case, the company's profit has a clear structure and is obtained from the main activity of the organization.