Abdullina R.I.

Kostanai State University. A.Baitursynov, Kazakhstan

The essence of the problem and analysis of income, profits and profitability

One of the most important conditions for effective management of enterprises is self-sufficiency. This means that all his expenses are covered by related income. Thus the sum of the revenues should exceed the amount of costs to make a profit, necessary for further development. Consequently, revenues are one of the components of the financial results of the business entity.

Financial performance is determined primarily by qualitative indicators produced by the enterprise, the level of demand for these products, because, as a rule, the bulk in financial results of profit (loss) from sale of goods (works, services).
Financial results of the Company serves as a measure of the importance of this enterprise in the national economy. In market conditions of managing any enterprise interested in obtaining a positive result from their activities, because by the value of this indicator the company is able to expand its capacity, financially motivate the staff working in the enterprise, pay dividends to shareholders, etc.

The final financial results of enterprises is the subject of many authors. Their understanding of the essence of this concept is far ambiguous.

Consolidated (integrating) indicator of the financial performance of the company is carrying (gross) profit or loss.

Regulations governing the taxation of profit equated with income. She writes that it is not the same thing. Because income is treated as a cash flow coming into the state reserve, enterprise or individual in the distribution of national income.

Revenue in the narrow sense can be considered as a synonym of any of its forms (profit, rent, wages and interest). In a broad sense, the concept covers all income funds in various forms made available to the enterprise.

Today the enterprise income along with profits increasing role played by income (interest, dividends) from securities of other issuers. In this regard, the final result of its financial and economic activity it would be better not name the book profit and income on the balance sheet (balance income) , as the name index should reflect its economic substance .

Very interesting considering the essence of the concept in the financial result is a need for more general indicator than the financial result that reflects the condition of the property and the dynamics of the share capital, giving a complete picture of the financial viability of the institutional unit. She calls such global financial performance indicator. From her point of view, it allows us to understand, assess, analyze and explore these phenomena and processes:

- Management of capitalization;

- The formation of any profit institutional units;

- The concept of monetary and non-monetary financial results;

- The concept of profit to ensure the welfare of institutional units;

- The general concept of economic profit;

- Management of financial results;

- Management of financial flows;

- Use of tax control.

Basis for further development of theory and practical use of the global result of the activity of institutional units over a certain period of time. Thus, the financial result is defined as an increase or decrease in value of the property at a constant capital at the beginning and end of the period.

In summary, it should be noted that the views of experts on the problem of determining the economic essence of the concept financial results varied. It is recalled that in the present conditions of Kazakhstan's transition to a market economy the problem of defining the essence of various indicators related to the financial performance of the company, is very urgent. Quite often, even in the regulations governing the accounting and taxation, are different interpretations of the same concept. For example, you often encounter the opinion that the net income and earnings, retained by the Company, are one and the same. But it is not so. Try to give a definition of various parameters characterizing financial performance.

Most important economic category that characterizes the financial results of companies - profit. Profit is the difference between income and costs of production. In microeconomics, the following types of income: gross (total), the average and marginal revenue.

One of the approaches in the analysis of domestic practice the profit allocated the following activity:

- Profit (income) from operations;

- Income (loss) from financial activities;

- Income from investments;

- Balance sheet profit (book profit);

- Net income;

- Profit, located in the disposal business.

A significant number of indicators characterizing financial performance, create technical difficulties for systematic consideration. Differences in the appointment of indicators difficult choices each participant commodity exchange those that are most suit his needs for information about the real state of the enterprise. In the reporting of domestic enterprises consider several other indicators

The overall objective of the analysis of the implementation cycle and generate revenue is to assess, whether objectively presented in accordance with generally accepted principles of balances that are relevant to this cycle. Depending on the activities and conditions of distinguish income from ordinary activities and other income.

In accordance with the Regulations on accounting income from ordinary activities is the proceeds from the sale of products and goods, works and services.
Generate income from sales of goods depends on the pricing procedure.

Profit shows not all the revenue, but only that part which is "emptied" from the cost of these activities. In qualitative terms, profit is the difference between total revenue and total costs of doing business.