Novikova N.E.Financial University under Government of Russian Federation, Moscow, Russian Federation nnemw@mail.ru
Novikov V.A.Financial University under Government of Russian Federation, Moscow, Russian Federation ludy@yandex.ru
Subject For users, transparency of financial reporting figures depends on the procedure for formation of parameters in the system of accounts, and accounting policies of economic entities. Therefore, it is important to make compliant the terms used in accounting, and accounting policies. Objectives The study aims at summarizing the approaches to the formation of measures of income and expenses in accounting and reporting. Methods The article analyzes the measures of income and expenses, gains and losses, which are formed in the system of accounts, and presented in financial statements. Results The analysis of measures of income and expense unveiled discrepancies associated with the use of both various terms to denote the same indicators, and the same concepts to denote different ratios. The study shows that depending on accounting policy, Gross Profit (Loss) indicator of the Income Statement can vary significantly, especially in cases, where General Running Costs make a significant share in the full cost of products sold. Conclusionsand Relevance We conclude that to improve the efficiency of the analysis of financial results, there is a need to unify the indicators of income and expenses, gains and losses in accounting and reporting.
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