REGULATORY FRAMEWORK DEFINITION OF FINANCIAL RESULTS IN UKRAINE

professor Shmygol N. M.

master Strilets N.V.

Zaporizhzhya National University

А large number of related material, labor and financial resources are involved in carrying out industrial and financial business entities. The goal of any enterprise is a positive financial result and also to find ways to increase it. The impact of activities reflected in financial and economic terms which most accurately describe the financial position of the entity and give an idea of the economic potential of its development. The financial result is a major final indicator [1].

The financial result is one of the most important economic indicator, which summarizes all the results and provides a comprehensive assessment of the activity.

The fair value of a positive outcome depends on the development and formation of a proper accounting system financial results.

The financial results involve all aspects of the company: the level of utilization of production facilities, labor, material and financial resources; features and technology of production; cost of sales, quality; sales, prices' implementation; productivity; government regulation of the industry, etc [2].

Income and expenses determine the financial results, what are generated during the operating period. The functioning of any entity dependents on the regulatory framework. It governs the legal and economic relations with the state enterprises, other enterprises and organizations of the workforce. So one of the important issues is to review the legal framework of accounting, analysis and audit of the financial performance of business enterprises.

The main regulations govern the accounting of income and expenses of the enterprise in Ukraine: Tax Code of Ukraine, the Law of Ukraine "On Accounting and Financial Reporting in Ukraine" Decrees of the President of Ukraine, resolutions and decisions of the Cabinet of Ministers of Ukraine, state of emergency (S) 1 " General requirements for financial reporting ", P (S) 15" Revenue ", P (S) 16" expenses "Plan of accounts for assets, capital, liabilities and business operations of enterprises and organizations, and instructions on its use, orders, regulations, instructions, letters, explanations of ministries and departments [1].

A complete and reliable information is important to determine the financial result. P (S) 15 "Revenue" and P (S) 16 "Expenses" define methodological principles of formation of accounting information on income and expenditure of the enterprise and its disclosure in the financial statements. Measurement and classification of income and expenses are in particular, P (S) 15 and P (S) 16. Such information provides users of financial statements to compare, evaluate and forecast revenues and costs of the company, to explore its profitability, solvency as well as financial results to analyze the dynamics and identify the causes of deviations.

Nowadays there is a gradual transition to accounting and financial reporting by international standards in Ukraine. Studies of this issue have shown that almost every P (S) corresponds to a certain IAS and IFRS. In particular, P (S) 15 "Revenue" corresponds to IAS 18 "Revenue" and includes elements of IAS 20 "Accounting for Government Grants and Disclosure of Government Assistance". However, P (S) 16 "Expenses" is unique in the IAS and directly meet the needs of national practice.

As a result, an important condition for the success of any enterprise is correct and regulated determination of financial results as the correct understanding of its nature, methods of calculation ensure the effective operation of the company and its sustainable development in the modern economy.

References.

1. Янок Д.А. Результати діяльності у фінансовій звітності підприємств //Економіка АПК. – 2003. - №4. – с.77.-82

2. Пархоменко В. Розвиток бухгалтерського обліку: від реформування до адаптації та застосування / В.Пархоменко // Бухгалтерський облік і аудит. – 2009. – № 8-9. – С. 3-21.

3. Міжнародні стандарти бухгалтерського обліку 2001: зміни та доповнення/ Переклад з англійської за редакцією С. Ф. Голова. - К: Федерація професійних бухгалтерів і аудиторів України, 2008.