D.o.e., professor F.A. Moiseeva

A.V. Sherbak

Donetsk national university of economy and trade

named after M. Tugan-Baranovsky, Ukrane

Economic characteristics of the financial result

 

The development of market relations in Ukraine determines the necessity of more thorough treatment and management of modern enterprise.

Making measured management decisions needs reliable information about results of activity, that formed the context of the enterprises entity and their organizational structure. This is due to the fact that the main goal of every enterprise is sustainable of financial results that are the result of reflection by all parties of any entity.

Financial result is generalizing index of business activity. Profit, best known for a long time category, received a new meaning in modern economic development and functioning of independent entities. It is the main driving force of market economy that provides the interests of the country, owners and personnel.

Only a clearly defined management system, including all internal resources of the enterprise and the situation in the market, can achieve the desired profit margins and its’ effective using.

A large number of scientists study the financial result. Each of them has its own definition of this economic category, look at some of them.

Thus Partyn H. determines financial performance, as an increase or decrease in the capital of financial activity for the reporting period, expressed in the form of total profit or loss [1, p.. 69].

Slav'yuk R. interprets the financial result, as a result of business enterprises or departments in the form of financial indicators such as income (loss) and change in value of equity [2, p.. 34].

Sheremed A. and Ionova A. give the following definition: “financial results - is an increase or decrease of equity capital of organization, formed in the process of its business during the reporting period”[3, p.. 255].

The previous authors’ definitions of financial results relate to changes in the cost of equity capital over a specified period. This position allows to combine their definitions into a common group.

In addition, here are other views on the financial result.

Scientists Poddyerohin A., Vlasova N., Azarenkova G., GorodnyaT. give a similar definition of financial results, which underlines that this is the result of economic enterprise. The definitions given below.

Financial results for Poddyerohin A. - is the economic result of economic activity in general and its divisions expressed in monetary terms [4, p.. 87].

Financial result in the book Vlasova N. “Finances” is defined as the final economic result of the enterprise as a profit or loss [5, p.. 33].

Gorodnya T. determines the financial result as a summary of economic production activities of economic entities, expressed in financial form [7, p.. 89].

Shuliak P. has slightly different definition of financial results than previous researchers. He believes that the financial results of the organization during the reporting period is the balance of income and expenditure [8, p.. 288].

Kovalev V. gives the following definition: “financial results, as the final result of the economic entity means a profit or loss and reflects the managers skill level of using of material, labor and financial resources, and the accountants skill level of optimization the tax base” [9, p.. 184].

Table 1

The positions of researchers concerning the financial result

Researcher

Position

1.

Partyn H., Slav'yuk R., Sheremed A., Ionova A.

Financial result as an increase or decrease the equity capital of the organization.

2.

Shuliak P.

Financial result - is balance of income and expenditure.

3.

Poddyerohin A., Vlasova N., Azarenkova G., GorodnyaT.

Financial results, as total economic activity of enterprise in the form of profit (loss).

4.

Kovalev V.

Financial result depends on the skill of using all available resources in the enterprise.

 

Based on the above presented points of view of defining the essence of financial results, you can group them by certain signs in four groups (Table 1).

Thus, we can conclude that no single approach to definition the category of “financial result”. Various scientists have their own approaches to the characteristics of this index. But by highlighting the common elements in each approach, you can define the general definition of financial results and structure the position of researchers.

 

Literature

1. Партин Г.О. Фінанси підприємства: Навчальний посібник / Г.О. Партин. – К.: Знання, 2006 – 379с.

2. Слав’юк Р.А. Фінанси підприємств: Навчальний посібник / Р.А. Слав’юк.  – К.: ЦУЛ, 2002 – 450с.

3. Шеремед А.Д. Финансы предприятий: менеджмент и аналіз6 Навч. посіб. / А.Д. Шеремед – М.: Инфра-М ,2004. -538 с.

4. Савицька Г.В. Економічний аналіз діяльності підприємства: Навч. посіб. / Г.В. Савицька. – К.:Знання, 2005. -662 с.

5. Власова Н.О. Фінанси підприємств: Навчальний посібник / Н.О. Власова – К.: Центр учбової літератури, 2007. – 271 с.

6. Азаренкова Г.М. Фінанси підприємств: Навч. посібник / Г.М. Азаренкова. – К.: Знання-Прес, 2009. – 229 с.

7. Городня Т.А. Економіка та фінансова діагностика: Навчальний посібник / Т.А. Городня. – Львів: «Магнолія 2006», 2008 – 282с.

8. Шуляк П.Н. Финансы предприятий: Учебник / П.Н. Шуляк. – М.: издательский дом «Дашков и Ко», 2005. – 752 с.

9. Коваленко Л.О. Фінансовий менеджмент: Навчальний посібник / Л.О. Коваленко. – К.: Знання, 2008. – 483 с.