FINANCIAL RESULTS OF UKRAINIAN ENTERPRISES: PECULIARITIES OF ACCOUNTING SUPPORT FOR THEIR FORMATION AND MANAGEMENT

have been studied, taking into account the requirements of national legislation and international account - ing standards. The system of accounting accounts for recording the formation of the financial result of enterprises is characterized. The study of the differences in the rules for calculating the financial result of enterprises and private enterprises, recognition of their income and expenses was deepened. The influence of the financial result on taxa - tion (income tax and single tax) is analyzed. A detailed analysis of the composition of income and expenses for operating and non-operating activities and notes to financial statements made it possible to establish that the main de - termining factor in the formation of income is the net income from the sale of products (goods, works, services) and net earned insurance premiums, while the formation of expenses is operational expenses of Ukrainian enterprises.


№ 8. 2023
БУХГАЛТЕРСЬКИЙ ОБЛІК, АНАЛІЗ ТА АУДИТ (ЗА ВИДАМИ ДІЯЛЬНОСТІ) Statement of the problem in a general form and its connection with important scientific or practical tasks. In the activity of any enterprise, regardless of its form of ownership and type of activity, an important place is occupied by correct and rational accounting, since it is the main information base at the enterprise. In turn, the system of accounting for the financial results of the enterprise includes certain subsystems that form information about financial results, namely operational, managerial and financial accounting [1].
In order to make effective management decisions, reliable information about the results of activity, formed taking into account the specifics of the enterprise's management and its organizational structure, is necessary. The reliability of the formation of the financial result is the basis of the principles and rules of accounting, the mandatory observance of which is required by the legislative framework, in particular, national regulations (standards) of accounting and international standards of financial reporting [2].
Analysis of the latest studies and publications, which the author relies on, which consider this problem and approaches to its solution. Considering the importance of financial results of enterprises, there was a need for a deeper understanding of the concept of «financial results», which led to discussions that took place both among economists and among accountants. Yes, L. Turova and D. Marynych analyzed approaches to defining the concept of «financial results» from the positions of F. Butynets, A. Zagorodnyi and G. Vozniuk, A. Borysova [3]. Yu. Moroz [2].
Highlighting previously unsolved parts of the general problem, to which the specified article is devoted. In order to ensure a more transparent and quick process of accounting for financial results and carrying out an analysis that would provide a complete picture of the company's activities, it is necessary to clearly distinguish and display in detail all the components of the company's income and expenses, taking into account the essential factors: types of activity, size, organizational and legal form of business. The relevance of this topic is also due to the transformational processes in Ukraine, namely the country's integration into the international space.
Formulation of the goals of the article (statement of the task). The purpose of this work is to deepen the study of accounting support for the formation of financial results of Ukrainian enterprises for the purpose of their effective management.

Presentation of the main research material.
The financial result is the difference between income and expenses, that is, the profit or loss of the enterprise.
The financial result is a purely accounting term that shows the result of an arithmetic operation. The company always has a financial result: positive (profit) or negative (loss). A zero result is also possible, but it is rare, unless the enterprise did not conduct any activity at all during the period (stage of creation or liquidation).
The analysis of the data of Ukrainian enterprises for 2021 confirms a generally positive situation with the volumes of financial results of enterprises: the total amount of income amounted to 13,995.8 billion UAH, total expenses -13,110.5 billion UAH, as a result, the profit amounted to 885.3 billion UAH [4]. Further, a more detailed analysis of the composition of revenues and expenses for operational and nonoperating activities and notes to financial statements makes it possible to establish that the main determining factor in the formation of revenues is net income from the sale of products (goods, works, services) and net earned insurance premiums, while the formation of expenses -operating expenses of Ukrainian enterprises.
In 2021, the largest share in the structure of net income from the sale of products (goods, works, services) was made up of wholesale and retail trade (with repair of motor vehicles and motorcycles) -39.6% and industry -36.7%, other operating income more , than a third was formed by industrial enterprises (35.9%), 16.1% -wholesale and retail trade, 15.6% -agricultural (together with forestry and fisheries) [4].
Along with this, in the structure of operating expenses, two fifths (or 40.5%) were occupied by wholesale and retail trade enterprises (with the repair of motor vehicles and motorcycles), 35.8% by industrial enterprises, among other expenses, the largest share is also occupied by industrial enterprises (tables 1, 2).
The situation with the formation of the financial result of agricultural enterprises is quite interesting and indicative (regarding the differences and factors of the formation of the financial result): in the structure of income, their share was 6.4%, in the structure of expenses -5.0%, but in the structure of net financial results (profit) -27.0%. Similarly, the situation with wholesale and retail trade enterprises (repairing motor vehicles and motorcycles) is atypical -their share was 37.7; 39.3 and only 13.3 percent respectively [4].
This kind of analysis allows you to establish the problem areas of the enterprises and whether they are related to the main type of activity, which is quite significant for investors and management (owners). Diagrams, which can be built in the same Excel, make it possible to demonstrate changes in the structure in dynamics more clearly. As you can see, only information about the company's profits (losses) is not enough, and therefore to establish a complete picture, the following are used: analysis of income and expenses separately from operational activities and non-operating activities; knowledge about the structure of a specific group of income or expenses, which can be gleaned, in particular, from the notes to the financial statements. If there are no notes, then only from the data on accounting accounts. Without of taking into account the results of activity of banks, the temporarily occupied territory of the Autonomous Republic of Crimea, the city of Sevastopol and a part of temporarily occupied territories in the Donetsk and Luhansk regions.

The information include of data reports of enterprises, which were submitted on initiative.
Source: created by the author based on data [4] By the way, in reporting according to international standards (IFRS), the term «financial result» is usually avoided and the concepts of «profit» or «loss» are used, which are more understandable for the average reporting user.
The accounting rules of the financial result are determined by separate standards: NP(S)BO 15 «Income» [5], NP(S)BO 16 «Expenses» [6], NP(S) BO 1 «General requirements for financial reporting» [7]. There is no separate standard for accounting for financial results. In the IFRS system, everything is more complicated -there are no separate standards for income and expenses, so the main rules for their recognition should be found in the Conceptual Basis of Financial Reporting and IAS 1 «Presentation of Financial Statements».
Both in national and international standards, certain nuances of recognition of income and expenses are regulated by specialized standards. For example, the rules for calculating depreciation (amortization) of fixed assets are determined by № 8. 2023 БУХГАЛТЕРСЬКИЙ ОБЛІК, АНАЛІЗ ТА АУДИТ (ЗА ВИДАМИ ДІЯЛЬНОСТІ) NP(S)BO 7 «Fixed Assets» (IAS 16 «Fixed Assets» in the IFRS system).
The financial result is not equal to the balance of money. This accounting paradox is related to the fact that the recognition of income and expenses in the modern accounting of enterprises is in no way related to the receipt and expenditure of funds. As a result, the financial result may be positive -profit, but the company may not have any money in the account, and vice versa. Therefore, the movement of money does not affect the financial result of the enterprise. For example: the company received an advance for its products, which it has not yet shipped. There is money, but there is no income (and, accordingly, profit), since income can be recognized at the time of shipment of products. Source: created by the author based on data [4] There are no separate rules for accounting for financial results, as they are derived from the rules (principles) of accounting for income and expenses. There are only two of them: 1) income and expenses are recognized at the moment when they are actually incurred, regardless of receiving/spending money; 2) when calculating the financial result, revenues are compared with the costs that were incurred to obtain them.
The above-mentioned 2 rules are called the «principle of accrual» -they are considered together.
A whole system of accounting accounts is used to record the formation of the financial result of enterprises: -income accounting accounts (grade 7); -cost accounting accounts (grade 9); -accounting account of production costs (23) and general production costs (91). They should be highlighted separately; -financial result accounts (account 79 and its sub-accounts).
Enterprises can also use class 8 accounts in this system to account for costs by elements. However, the vast majority of enterprises do not do this, since this class of accounts, firstly, is not mandatory, and secondly, it is quite possible to do without it.
The account of financial results (79) has as many as 3 sub-accounts, which are listed in the table 3.
Account 79, together with its sub-accounts (791, 792, 793), is the final account to which all income and expenditure accounts (7th and 9th grade) are debited (closed). Only accounts 23 and 91 are an exception -they are closed in advance for other accounts (23, 26, 90).
Preliminary financial result of the enterprise = Turnover by Kt 79 -Turnover by Dt 79. The accounting rule is simple: we close accounts of classes 7 and 9 at 79.
The term «financial result» does not actually apply to individual entrepreneurs (PPOs), as it belongs to the NP(S)BO system and the Chart of accounts, which do not apply to PPOs, because it is considered that they do not keep accounting records and do not apply the Law of Ukraine about accounting. Also, the principle of accrual is applied only to enterprises (legal entities), since natural persons-entrepreneurs calculate their profit (loss) for tax purposes in the Book of accounting of income and expenses according to slightly different rules, and the recognition of income and expenses of entrepreneurs is connected with receipt and spending money Yes, if the PPOs receives an advance, it is income and will increase its financial result, but the enterprise does not. In addition, entrepreneurs are prohibited from recognizing a number of expenses: depreciation of passenger cars, income (losses) from exchange rate changes, unpaid expenses, etc. This approach is called the cash method of accounting for income and expenses, which is the opposite of the accrual principle. In order for there to be income, the enterprise must lease objects or provide loans and receive interest on such operations. However, in order to provide financial services, you must also have a license from the National Bank of Ukraine (previously from the National Financial Service Commission)*. Therefore, insurance companies, credit unions, leasing companies and other providers of financial services can have a positive result of financial transactions, but not ordinary enterprises.

793
accounting for the results of other activities Income and expenses from any other activity that did not fall into subaccounts 791 and 792 are debited to this subaccount: expenses from the write-off of noncurrent assets, income from non-current assets received free of charge, income from compensation for losses from an insurance company, income and expenses from changing currency courses that are related to such operations, etc. * Law "On Financial Services and Financial Companies" dated 14.12.2021 No. 1953, which is to replace the current Law "On Financial Services and State Regulation of Financial Services Markets" dated 12.07.2001 No. 2664 from January 1, 2024 Source: created by the author based on data [8] The rules for calculating the financial result of enterprises and sole proprietorships, recognizing their income and expenses differ significantly.
In the Tax Code (ТKU) for entrepreneurs of the general taxation system, even a different term is used -«net taxable income» instead of «financial result», although in its economic essence it is practically the same. The financial result of the enterprise can be divided into components. In particular, when the Report on financial results is drawn up, an approach containing the table 4 is used. The financial result is reflected in the following reports: -Report on financial results (also -form No. 2, international name -Statement of profits and losses) -sums of income and expenses by various types, intermediate financial results (from operating activities, before taxation, net); -Balance sheet (international name -Statement of financial position) -accumulated financial result for all periods of activity (retained earnings/uncovered loss); -Income tax return -the financial result is the basis for calculating income tax. However, this report is not submitted by participants of the simplified taxation system (single tax payers).
In financial statements, the loss is shown in parentheses, not with a minus sign («-»). The value of the statement of financial results for analysis increases with the presence of notes, they allow a deeper understanding of the situation.
In IFRS-format reporting, this report is presented either as one Statement of Comprehensive Income or as 2 separate reports: 1) Profit and loss statement; 2) Statement of other comprehensive income. In general, the recognition of income and expenses in the Report is based on the requirements of NP(S) BO 15 «Income» and NP(S)BO 16 «Expenses». In the latter, you can see the composition of each component of expenses: administrative, sales expenses, and others, but it is unnecessary to look at the notes or accounts of the accounting.
The Ukrainian version of the report on financial results in all essential aspects meets the requirements of IFRS, so the approaches to their analysis are the same.
A general analysis of the dynamics and structure of financial results for several years makes it possible to understand: trends in the development of the enterprise (growth, decline); general availability of profit (loss) and due to which activity it occurred (operational or other).
The financial result is a key indicator in the calculation of the income tax paid on the general taxation system. How it affects the tax is shown in the table 5. Single tax = fixed amount for each month Agricultural enterprises and PPOs. Single tax (simplified system, group 4) no the amount of Single tax depends on the area and normative monetary assessment of land plots * in the PPOs of the general system, the term "financial result" is not used at all. Instead, there is "net taxable income", which is essentially the same as the profit of a legal entity (enterprise). As for the simplified system, there is no financial result there either -there is only taxation of the income received -the expenses do not affect the single tax (EU) in any way.
Source: created on data [10] The profit increases the company's retained earnings in the balance sheet (Dt 79 Kt 441). It can be used in the future for paying dividends, forming reserve capital, and increasing authorized capital. You cannot distribute at all.
The loss is covered by retained earnings of previous years or reserve capital. If they are not there, then the loss increases the uncovered loss of previous years in the balance sheet (Dt 442 Kt 791).
Conclusions from this study and prospects for further research in this direction. All current and prospective activities of the enterprise are aimed at obtaining profit to ensure its existing condition and further development of economic potential and market value. Therefore, one of the most important aspects in managing an enterprise is obtaining timely, complete and reliable information about the factors that create profit from economic activity and equity from other sources. Accounting accounts serve as the information base for managing financial results. Accounting accounts provide information on the volumes and sources of income, spending, formation and use of profits.