Requires profitability goal of financial management arrangement and organization of sources and uses of funds established way you managed to get a rate of return of funds invested not less than the rate of return that can be achieved from alternative investments that are exposed to the same degree of losses.
Profit and identifies with the increase in revenue accountants established on costs during a certain period which means that he (excess costs), and is determined according to the following equation:
Revenues - Costs = Profit
Although the stability of this equation in the accounting system and the economic, capitalist and socialist him. However, the outcome of profitability vary according to the changing economic and social philosophy of capitalism and socialism and affected both revenue and costs by type and thus accounting rules followed. There is another method to determine the accounting profit is a method of surplus value, which recognizes two terms established in the evaluation of different so that the profit difference between my balance capital's first term and most recently provided an exception any difference between the current value of tangible assets and the book value according to the following formula:
Profit during the period property = value end of the period + value of the assets distributed to millions during the period - the value of assets contributed by the owners during the year - the value of
Property over the period.
Accountants have adopted two theories for the determination of net profit to detect virtual income, namely:
1 - Net Profit comprehensive theory.
2 - Theory of net operating profit.
Each of these theories supporters and opponents are all paragraphs of revenues and costs are essential factors in the determination of net profit paragraphs, whether operational or non-operational according to the first theory.
Has taken the Institute of Chartered Accountants in America overall theory of the net profit, provided isolate Alchrat operational paragraphs of non-operational, while the second is based on the theory into paragraphs revenue and operational costs only in the determination of net profit.
This came unified accounting system to replace the confusion made in the amount of net profit derived in the previous two both theories through extraction of both figures to dissuade stages of application. The researcher would use in the study of the profitability of facilities under discussion.
I've had to adopt accountants historical cost basis (from the perspective of economists) in determining profit and ignore the implications of the change in price levels impact in reducing some of the values in the Income Statement and Balance Sheet for the facility, and thus lack of precision in the determination of net profit as a criterion for assessing the performance (but that does not means being unable to access the true measure of the profitability of the facility). The different accounting profit for economic profit due to variation analysis tools used by each of the accountant, economic, and outlines the areas of disagreement between the accountants and economists about the following things:
Changes in price levels and the impact of that in the process of calculating the extinction assessment, evaluation of inventory, inclusive of revenues and costs. In order to gain access to economic and taking into consideration the points of disagreement about accounting profit track the steps the following equation:
Economic Profit = (accounting profit (+) changes in the value of non-tangible assets
During the period in excess of exchanges in value resulting from the calculation of extinction download value of stock) - (amounts realized during the period as a result of the changes that have occurred in the value of the tangible assets which are not accounted for in the periods prior) (changes in tangible assets which are not accounted for in the previous period (+) changes in intangible assets during the period).
In a socialist economy (which depends planning a full basic rule in moving its activities) notes that the profit takes to deport agree and concepts. It must be highlighted here on the nature and importance of the profit within the system, especially since the study examines some sectors of socialism in one country.
In a socialist economy plays the market and the prices a secondary role in guiding economic activity due to the identification of freedom available to the economic establishments in the changing goals and objectives established for it as the profit in this system is the means to accomplish the plan and the achievement of the set objectives and not a goal in itself. Accordingly Varabh in a socialist economy is one of the criteria for judging the performance of the established economic and measure the extent of their usefulness in achieving the objectives in addition to the mind of the main sources in the process of expansion and construction of sophisticated economic base.
It has made a profit in the importance of this system to put pressure on facilities to reduce overall costs, which can get as much profit as possible and thus prove their efficiency.
التسميات
Concepts of financial management