The profit and loss account can be divided into the following segments:




Profit and loss account
+ Continuous operations
= + Operating Result
+ Financial Result
= + Income before tax
+ Result for the year from continuing operations
+ Interrupted operations
= + Result of the Exercise
Continuous operations include all expenses and revenues, among other magnitudes, which are related to the economic management of the company. The difference, if positive, results in earnings before interest and taxes or "Operating Income". This result reports on the operational efficiency of the company, leaving out interest and taxes. As this result depends only on the assets to generate income, it allows a more appropriate intercompany comparison, being freed of the financial charges.

On the other hand, the "Financial Result" involves calculating the difference between income and expenses for financial transactions. As a result of the sum of the two previous results, the "Earnings before tax" result is obtained, and if this has been positive, the corresponding "Tax on profits" will be deducted, finally obtaining the "Profit for the year".

However, the firm may have disrupted activities, which arise when a component of the company has been disposed of or otherwise disposed of, or has been classified as held for sale. If it occurs, it would be a positive or negative factor of the final result.

Pilar Huber Hermosa

THE ESSENTIAL ON ACCOUNTING BENEFIT

Documentation

· Royal Decree 1415/2007, which approves the General Accounting Plan
· Royal Decree 1515/2007, approving the General Accounting Plan for Small and Medium-sized Enterprises.
books

· Garcia Castelli, A. (Cord.), Financial Accounting. Analysis and application of PGC 2007, Ariel Economy, 2008.
· May, Carlos Y Pulido, Antonio, Financial accounting. A current approach, Para info, 2008.
· Muñoz Jiménez, J. (Cord.), Financial accounting. Prentice Hall, 2008.
· Rivera Romero, José, Financial Accounting. Editorial Trivium, 1993.
· Zamora Ramírez, C. (Cord.), Practical analysis and implementation guide of the new PGC. CISS. Wolters Kluwer Group, 2008.

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