Audit and economical analysis

Benefits (losses) of main and economic activities, ways of their identification and analysis

 

The financial results of the business entity from the main and economic activities are characterized by the following indicators of profitability:

A .Gross profit from the sale of the product is determined as the difference between the net proceeds of the sale and the production cost of the product sold:

GP = NGS - PCS,

where:

GP - Gross Profit;

NGS - Net gain from sales;

PCS - production cost of sales.

B) The gains derived from the principal operation are determined by the difference between the gross profit of the product and the costs of the sale, plus any other gain or loss from the underlying operation:

BCB = GP - PE + OIMO - ODMO,

Where:

BCB - benefits from core business;

PE - period expenses;

OIMO - Other Income from Main Operations;

ODMO - Other damages from major operations.

S). Income (or loss) from business activities, the amount of profit earned from this business is calculated as a gain or loss from financial activity:

PDEA = BCB + IFA - CFA,

where:

PDEA - profit derived from economic activities ;

IFA - income from financial activities;

CFA - Costs of financial activity.

Table 194

Loss analysis of earnings from main and economic activities.