Revenue
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Revenue is material or other benefits received by the company through the provision of a number of services to its customers or the sale of its products. Revenue is the logical conclusion and result of the activity of any companies commercial as well as non-commercial. Non-commercial firms under revenue understand the total amount of donations and gifts received on their account.
Revenue is amount Money or other benefits received by the organization for certain of its activities, mainly due to sales goods or services to their clients.
Revenue is income (in the form of cash or future benefits) from sales goods, work or services. Revenue is the most common indicator financial results companies.
Revenue is cash received (proceeded) by an enterprise, firm, businessman from the sale of goods and services.
Revenue is money received enterprise for products shipped to customers ( work, services).
Revenue is gross inflow of economic benefits arising from ordinary activities organizations for period in the form of capital increases, other than contributions from shareholders.
Revenue is cash receipts from the sale of products on the market.
The most important category of accounting and analysis of the company's income, and therefore its profitability and stable financial position, is revenue. Revenue ranks highest specific gravity all in all income enterprises. The company's revenue is its main source of formation of its own financial resources enterprises.
Revenue is the sum of cash receipts for a specific period from the performance of the enterprise. The activity of the enterprise itself is classified into three main areas:
Primary activity;
Depending on the direction of the enterprise, the company's revenue is also classified in three areas:
Revenue from core business. Revenue comes from the sale of products (performed works services rendered);
Revenue from investing activities, expressed as a financial result from the sale non-current assets, implementation valuable papers;
Revenue from financial activities. This type revenue includes the result of placement among investors of bonds and shares of the enterprise.
Sales revenue is an indicator that characterizes the final result production activities enterprises. It is defined as the product of the average price and the number of units sold.
The proceeds from the main activity acts as proceeds from the sale of products (work performed, services rendered) is expressed as a financial result from the sale of non-current assets, the sale valuable papers.
Revenue from financing activities includes the result of placement among investors bonds m shares of the enterprise.
As is customary in countries with market system management, the total revenue is the sum of the revenue in these three areas. However, the main value in it is given to the proceeds from the main activity, which determines the whole meaning of the existence of the enterprise. In public catering enterprises, revenue consists of the amount of sold products of own production and the amount of purchased goods. In form No. 2 "Report on financial results", in the declaration of arrived revenue is shown gross as sales revenue. But in statistical reporting sales volume is called "turnover" and it consists of retail and wholesale turnover. Income from sales in catering is revenue - the amount of goods sold for sales prices. It consists of cost sold products of own production and purchased goods. Revenue can be: total, including VAT, and net (without VAT).
In the scientific community, it is customary to divide the concepts of "profit" and "revenue". There are many differences between these two financial concepts. Both "profit" and "revenue" are financial and business terms. Their meanings are close to each other because they are often used in the same context. Both of these terms are used in accounting accounting and economic disciplines.
Revenue is total amount money that a business receives as a result of its activities, such as the sale of a product or service, but can also be received indirectly. A business can receive indirect income by investing money into anything.
On the other hand, profit or net profit is money that remain in business after deducting all costs and expenses from the proceeds. Judicial expenses and costs include operating costs (, maintenance of equipment, safety, expenses for and many others), and capital. can be divided into different types (usually in tandem) and include fixed and variable costs, direct and indirect costs, etc. Profits can be classified as positive or negative (plus or minus).
In most cases, the concept of profit and revenue mean the same thing. For example, if an employee received salary this is his profit and revenue, because everything and pension payments are automatically deducted from wages employees, so what the employee receives in his hands is the balance after all deductions.
They are also calculated differently. calculated by subtracting costs and expenses from total revenue. Revenue is calculated by multiplying the price by the number of units sold product.
In economics, profit and revenue have a broader meaning. Economics looks at the profits and income of an entire industry or an entire country. This perspective allows a country or industries evaluate the rise or fall.
Main differences:
- "Profit" and "revenue" are concepts used in business, finance and economics, this or their equivalent is received economic object(business, organization or government) or individual. person (employees);
Both concepts are used for different levels: personal, business and national. Accounting generally uses the personal and business level to calculate profits and revenues. The economy counts nationally or globally;
- "revenue" is generated after the business produces and sells products and services. Revenue is calculated by multiplying the price by the number of units sold. Profit is calculated after all deductions and cost calculation;
Profit and revenue are constantly involved in the production cycle. "revenue" is the starting point for profit, and profit provides cash for the next cycle of production and increase in revenue.
Differences in the formulations of the concepts of "income" and "revenue" often do not allow one to form a correct idea of them. However, it should be noted that these concepts are different from each other. So, in particular, revenue is the amount of sales of goods (services) at the selling price. Among the inhabitants, it is generally accepted that revenue is the money received by the cashier of the enterprise. This view is due to the fact that every person is a retail customer. In the store, settlements are made with a slight difference in time between receiving the product and paying for the goods. When settling between companies difference in time between shipment (receipt of a product or service) and their payment can take a significant amount of time. As a rule, the revenue from the sale of a product or service is fixed at the time of shipment, regardless of the state payment(prepayment).
The term "income" usually refers to difference between the proceeds from the sale of goods and the initial cost of these goods, both produced and purchased. When determining income from the provision of services, it is considered that revenue is equal to income, since no materials are consumed in the provision of services. AT retail a synonym for income is the term "realized trading".
Sometimes, the terms "income" and "profit" mean the same thing. These concepts should not be confused. Profit is the final result of the company's activities for a certain period of time and is the difference between all income and all costs of the enterprise.
Revenue from product sales- the most important result of the production, economic and commercial activities enterprises, basically corresponds to the indicator "sales volume" accepted in world practice. In the process of production of products, performance of work, provision of services, new value, which is determined by the amount of proceeds from the sale. Sales proceeds are the main source of reimbursement for the funds spent on the production of products (works, services), the formation of cash funds. Its timely receipt ensures the continuity of the circulation of funds, uninterrupted process enterprise activities. Untimely receipt of revenue entails interruptions in activities, reduced profits, violation of contractual obligations, as well as penalties.
Under the proceeds from the sale of products is understood the amount of money actually received on the company's bank accounts, at the cash desk of the enterprise, and other receipts in payment for sold products (works, services) for a given period (month, quarter, year). The proceeds from the sale of products include amounts received for the sale of finished products and semi-finished products of our own production, works and services of an industrial nature, purchased items of trade (previously purchased components and parts for assembly), etc. Revenue depends on the volume of products sold, its range, quality and grade, price level. The timeliness and completeness of receipts from the sale of products contributes to the normal financial condition economic object.
The proceeds from the sale of goods and products indicate the completion of the company's production cycle, the return of the company's funds advanced for production into cash and the beginning of a new round in the turnover of funds.
Revenue is directly related to profit. High profits ensuring debt stability, prosperity and financial stability enterprises. To ensure financial stability, it must have a flexible capital structure, be able to organize its movement in such a way as to ensure a constant excess of income over costs in order to maintain solvency and create conditions for self-reproduction. High income (revenue) is the result of competent, skillful management of the whole complex of factors that determine results economic activity enterprises and contributing to an increase in financial results.
Revenue from the sale of pawnshop services- represents the amounts received from the assessment and storage of property accepted in debt security, amounts (interest) received from the provision of short-term loans secured debt security movable property citizens intended for personal consumption
Gross revenue- the total amount of proceeds from the sale of products, works and services, as well as material assets. The main part of the gross proceeds is the proceeds from the sale of marketable products. In addition, gross revenue includes revenue from other sales, that is, sales of non-industrial products. Gross proceeds are determined in actual selling prices.
The gross proceeds of an economic entity is essentially an impersonal cash receipt that can be used to reimburse current expenses, be placed in, used for capital construction etc.
Sales revenue- revenue from cumulative sales (including sales in ) for a given accounting period, valued at full prices (invoice prices) without accounting discounts granted, product returns, price cuts and other adjustments.
Foreign exchange earnings- foreign currency received from the export of goods and services, as well as from international loans.
Foreign exchange net proceeds- proceeds from the sale of something ( material values) currency remaining free to use.
Marginal revenue- increase in revenue as a result of the sale of one additional unit of goods.
Hidden revenue- revenue not reflected in accounting or hidden under the guise of unrealized business transactions. The main purpose of concealing the proceeds is either direct theft or its involvement in illegal, unofficial circulation of funds.
Hidden revenue in foreign currency revenue is considered to be credited to accounts with authorized banks on the territory of Russia, regardless of its reflection in the accounting records of the enterprise, unless otherwise permitted by the Bank of Russia.
Average revenue- the total amount of proceeds from the sale of products, divided by the number of products sold (or the number of products for which it is presented), is equal to the price at which the product is sold, provided that all units of trade items are sold at the same price.
In addition to this, there is also total revenue.
Proceeds from the sale of products (works, services) - the final result of the production activities of the enterprise, the amount received on its account in bank or to the cash desk of funds for products manufactured and delivered to customers, buyers, work performed for them or services rendered. On the industrial enterprise the main, predominant part of the proceeds are funds from the sale of marketable products, i.e., finished items of trade and other products produced for the supply to customers, industrial services to the side. The revenue also includes the amount of funds received from the so-called. other sale, i.e. the sale of the results of non-industrial activities (products of ancillary Agriculture enterprises, factory transport services to the side, etc.). The proceeds also include funds from the sale of inventory items previously acquired by the enterprise and turned out to be redundant due to a change in the production program and for other reasons. However, when evaluating the efficiency of the enterprise, these amounts are not taken into account, since they do not reflect the results of its production activities. The proceeds from the sale are planned by the enterprises and taken into account by them in the current wholesale prices. Its value depends on the quantity, composition of manufactured products and the prices at which it is sold: list price (fixed), contractual, which may be higher than the list price, but within the established limits, and free, depending on the relationship between demand and supply of goods. From the proceeds from the sale, the enterprise reimburses the costs of production and sale of products (for the purchase of materials and raw materials, fuel and energy, the repair and operation of machinery and equipment, wages, etc.), and the amount remaining after the reimbursement of costs is the profit of the enterprise. With an increase in revenue, the ability of the enterprise to direct more funds to the consumption of the labor collective, wages, and the provision of social and other benefits to employees increases. The larger the revenue, the larger the consumption fund of the enterprise. In world economic practice, the indicator of proceeds from the sale of products corresponds to the indicator of sales in actual selling prices, periodically published in the annual balance sheets of firms.
AT process financial and economic activities financial services enterprises can carry out revenue planning for the coming year, quarter and operationally. Annual revenue planning is effective with stable economic situation. In conditions of instability, when the ratio of demand and suggestions confirmed by difficult to predict changes and legally established rules of conduct for legal entities. persons are constantly changing, annual planning is difficult and is not an objective guideline for the enterprise. In such a situation, quarterly planning is more appropriate. Operational revenue planning is used to control the timeliness of receipt of money for shipped products to the company's cash accounts.
To determine the proceeds from the sale of products, it is necessary to know the volume of sales of products in current prices without VAT, excises, trade and marketing discounts and export tariffs for exported products. Revenue from work performed and services rendered is determined based on the volume of products and the corresponding prices and tariffs. Intermediaries sell these products to retailers at prices that include selling margins. Retailers sell goods directly to consumers at retail prices, i.e. with trade markup. Selling goods at fixed prices, trading companies receive a trade discount.
In conditions market economy prices become the most important factor regulation of the production and consumption process and directly affect demand and offer.
The planned revenue from the sale of products is determined by the method of direct counting, multiplying the number of trade items sold by their selling price and adding the amounts received for the entire range of trade items.
The proceeds from the sale of each nomenclature of trade items is determined by the formula:
The volume of sales can be calculated based on the commodity money issue trade items in the planning period, adding the balances of trade items at the beginning of the planning period and subtracting those at the end of the planning period. The planned sales volume is calculated by the formula:
Realization prices in the planning period are determined on the basis of the prices of the base period, which are adjusted for the expected changes in the planning period, including taking into account demand and suggestions. When the range of trade items is too large, the calculation of the sales plan can be carried out using a combined method. The proceeds from the sale of the main types of products are determined by the direct account method, and to calculate the proceeds from the sale of trade items of another assortment, they use the enlarged method. For calculation, they accept commodity release for the entire range of remnants of trade items, add to it the value of the remnants at the beginning of the planning period and subtract the expected balances at the end of the planning period at free selling prices and at cost.
Proceeds from the sale of products, works and services is the main source of reimbursement of funds for the production and sale of products, the formation of income and the formation of financial resources. According to the market economy, sales volume and revenue are given special attention. The amount of revenue depends not only on reimbursement of expenses and the formation of profits, but also on the timeliness and completeness of tax payments, repayment of bank loans, which affect the level of interest paid, which ultimately affects the financial result of the enterprise.
Revenue from the sale of products is the amount of funds received on the account of the enterprise for the products sold. She is the main source cash income and financial resources of enterprises. Revenue from product sales is a financial category that expresses monetary relations between suppliers and consumers product.
The direct count method is based on guaranteed demand. It is assumed that the entire volume of manufactured products falls on a pre-order package. This is the most reliable way to plan revenue when the plan issue of securities and the volume of sales of products are linked in advance with consumer demand, the necessary range and the structure of the emission of products, the corresponding prices are set, then the proceeds from the sale can be determined by the formula:
As a rule, in the conditions of market relations, most enterprises do not have a guaranteed demand for the entire volume of manufactured products. To optimize costs and increase financial results, an enterprise should make efforts to increase the money emission of products, expand its range, and produce goods that are fundamentally new in terms of consumer qualities. In addition, in turn, the number of goods sold will also depend on the price level, and this dependence in practice can be elastic, inelastic and unity with the corresponding elasticity coefficients (Ke): in the first case it is greater than one, in the second it is less, in the third it is unit. The physical meaning of these coefficients is that:
The degree of elasticity has a different effect on the desired value. For example, with elastic demand (Ke>1) AT when the price goes down, it goes up, and when
inelastic (Ke B not
changes because the decrease in price is fully offset by a corresponding increase in the quantity demanded.
In conditions of unstable demand for products manufactured by the enterprise, a calculation method is also used for planning revenue, the basis of which is the volume of products sold, adjusted for input and output balances. Planning revenue from product sales is carried out by analogy with cost planning:
When planning the balances of finished products at the beginning of the planning period, the enterprise does not have comprehensive data on the actual value of the balances, therefore, the expected balances of unsold products are taken into account. Their cost in sales prices is determined using the conversion factor, which is equal to the quotient of dividing the volume of products in the prices of the reporting period
from goods for which the payment deadline has not yet arrived;
from goods shipped but not paid for on time;
· from the goods which are on safe keeping at buyers in a type of refusal of acceptance.
Thus, the amount of revenue may differ significantly from the cost of shipped products.
You can consider in more detail the planning of these factors that affect the timely receipt of revenue for manufactured products.
When planning the balance of unsold products in the warehouse, they proceed, first of all, from their actual availability, and in the absence of current data, from the data for the last reporting date, and the expected release of marketable products, taking into account its implementation in accordance with existing orders at the beginning of the planning period.
Planning for the balance of goods, the payment term for which has not come, is based on an analysis of the structure, schedules, methods of payment according to
concluded contracts, as well as the established terms of document circulation for intracity and out-of-town settlements, as well as settlements in foreign currency when conducting foreign economic activity. Planning the balance of goods shipped, but not paid on time, goods
in safekeeping with buyers, goods shipped, documents for which have not been transferred to the bank, is based on operational data on the reasons for non-payments and measures taken to reduce them. The balance of finished products in stock at the end of the planning period
are determined based on the need for accumulation to fulfill contractual obligations, the validity of which is outside the planning period, the conditions for implementation and other reasons. When planning revenue from the shipment of unsold products, it is considered
only finished products in stock at the beginning and end of the planning period.
The shipment method implies that revenue is fixed at the time of shipment of goods, services, regardless of the state of payment for them. Revenue from shipment (on an accrual basis) is recognized in tax accounting at the time of transfer of ownership of goods or services, i.e. when the product is sold to the customer. And it does not depend on whether it is paid or not. In case of application in accounting policy for the purposes of taxation of the "by shipment" option, the obligation to determine tax base occurs on the day the goods are shipped. At the same time, the date of transfer of ownership of the specified goods and the day of shipment may not coincide: under the terms of the contract, the ownership of the goods can pass to the buyer after payment for the product, and the seller’s obligation to pay VAT arises at the time of shipment. If the goods are not shipped and are not transported , but there is a transfer of ownership of this product, such a transfer of ownership is equated to the sale of the product.
In modern accounting systems, the "by shipment" method is predominant.
When using the “on payment” method (cash method), the company's revenue is fixed at the time of payment for goods, works or services. This method is used in small enterprises where cash settlement is mainly carried out and the date of shipment of goods or services coincides with the date of their payment. This method is also most widely used in small retail establishments, such as medium-sized stores, small restaurants and cafes.
Disadvantages of the pay-as-you-go method:
The system of accounting "on payment" is mainly based on cash and banking operations and therefore, important assets, such as inventories and property, fall out of the accounting contour. For example. When purchasing equipment, its cost will be written off as expenses and will reduce the profit for the month in which this equipment was purchased. In the future, the equipment will work and generate income, but the cost of acquiring it will affect only one reporting period.
When using the "on payment" method, it is difficult to control the accounts receivable and accounts payable in settlements with suppliers and buyers, since the “on payment” system keeps records of receipts and payments of money and does not keep records of shipments of goods.
In the "on payment" accounting system, income and expenses may refer to a different reporting period.
For example. Employee salary expenses in January refer to February. Advances for services received will be credited to the month in which payment is received, although the services themselves may be rendered in a different month.
Revenue is one of the most important indicators financial statements. It is a key profit factor, on the basis of which many financial indicators are built, revealing the profitability of the company, the return on investment, as well as many stock ratios. Based on this, the issues of recognition and measurement of revenue are extremely significant in forming a picture of the financial position of the organization.
For these reasons, the general principles for recognizing revenue for the purposes of compiling financial reporting occupy a central position in the system of rules accounting formed by the requirements of IFRS. In most cases, they are quite clearly formulated by the drafters of IFRS, unambiguous and simple. That revenue recognition has remained unchanged for decades. However, in last years more and more use general principles recognition of revenue in some particular cases is considered as distorting the reporting information of companies. This is due, firstly, to the fact that business practices are becoming more complex, with a clear shift in focus from manufacturing to services, where the proper timing of revenue recognition is more difficult to establish. Secondly, specialists in the field of formation and analysis of accounting information note the obvious tendency of managers, whose remuneration is directly determined by the market price of the company's shares and the amount of reported profit, to manipulate accounting rules in order to overestimate profits. Thirdly, there is enough documentary evidence of the readiness of independent auditors to meet such "wishes" of managers, especially in the absence of special rules prohibiting following these wishes. These trends in many cases lead to catastrophic consequences, both for companies and for the audit firms themselves, the significance of which for economic practice is extremely significant.
Here, it should be noted that errors or deliberate misrepresentations of facts related to the recognition of revenue can be divided into two categories: the reflection of legally received revenue in the wrong financial (reporting) period and the recognition of revenue that is actually unearned. Given the periodic nature of reporting, even simple revenue recognition errors can make a huge difference, even though they can be corrected over subsequent reporting periods.
In practice, all cases of erroneous recognition of revenue represent a serious problem for accountants seeking to properly interpret and apply IFRS, including for independent auditors.
Rules for recognizing revenue from various types of transactions have evolved over time and have been created in stages by various standards developers in a changing economic environment.
Under current IFRS, revenue from the sale of products or the provision of services can only be recognized when it is “earned”, that is, when the relevant criteria are met. A careful analysis of the rights and obligations of the parties and the risks that they bear at various stages of the transactions should be carried out in order to determine the moment of the actual sale and establish the basis for revenue recognition. Where it has the right to return the goods along with a deferred or contingent obligation to pay, or where there is a significant obligation on the seller to complete the transaction, revenue at the time of the initial delivery is not recognised.
Similarly, if there is an implicit or explicit obligation of the seller to repurchase the transferred product, the actual sale transaction is not considered completed. At the same time, in all cases, revenue recognition means demonstrating that the buyer assumes all "ownership risks" in full.
The IFRS Principles define revenue as "an increase in economic benefits during the reporting period in the form of inflows or increases in assets or decreases in liabilities resulting in an increase in equity other than contributions from equity participants". Revenue includes corporate income and other income. At the same time, income from the ordinary activities of the enterprise, characterized, among other things, as income from sales, provision of services, investment income (in the form of interest, dividends), as well as income from the provision of property for use (rental and license payments) is recognized as revenue.
The main issue in accounting for revenue is determining when it is recognized. Revenue is recognized when it is probable (ie "most likely") that future economic benefits will flow to the entity and these benefits can be measured reliably. IAS 18 specifies the conditions under which these criteria are met and therefore revenue is recognised. This standard also provides practical guidance on the application of these criteria.
This standard is applied when accounting for revenue from the following transactions and events:
Sales of goods;
Services;
Providing for the use by other parties of the assets of an enterprise that brings interest, (royalties) and dividends.
By goods, the Standard includes not only property acquired by an entity for resale (for example, goods purchased by a retailer, materials or other property held for resale), but also products of its own production held for sale.
The provision of services, according to the Standard, requires the organization to perform stipulated by the agreement tasks within a specified period of time, both within one and several reporting periods. Sometimes service contracts are directly related to building contract, for example, contracts for the provision of services of project managers and architects. The recognition and measurement of revenue arising from the fulfillment of such arrangements is not covered by this Standard, but is accounted for in accordance with the requirements for works contracts in IAS 11 Construction Contracts.
The provision of the organization's assets for use by other parties gives rise to revenue in the form of:
- "interest - a fee that is charged for the use of cash and cash equivalents or from amounts owed;
Royalties - payments for the use of non-current assets of the company, for example, patents, trademarks, copyrights and computer software;
Dividends - the distribution of profits between the owners of share capital in proportion to their share in the capital of a certain class.
Thus, IAS 18 considers the accounting procedure for only a part of the potential constituent elements of the company's revenue, primarily from operations related to the sale of goods, the provision of services, the use by other organizations or individuals of the property of the reporting company that brings interest, dividends, royalties.
It should be specifically noted that IAS 18 should not be applied to the accounting and reporting of revenue from many contracts and transactions that generate revenue or other income and are governed by other standards, namely:
Under lease agreements (IFRS (IAS) 17 "");
From the increase in the value of investments and dividends accounted for under the method equity participation(IFRS (IAS) 28 "to associates");
Under insurance contracts (IFRS 4 "Insurance contracts");
From changes in fair value financial assets and financial obligations or their disposal (IAS 39 " Financial instruments: recognition and measurement");
From changes in the value of other current assets;
Upon initial recognition and change in the fair value of biological assets related to agricultural activities (IAS 41 "Agriculture");
On initial recognition of agricultural products (IAS 41); and
As a result of the extraction of mineral resources.
Thus, according to IAS 18 "Revenue", revenue is "the gross inflow of economic benefits for a certain period in the ordinary course of an enterprise, resulting in an increase in equity that is not related to contributions from equity participants."
It should be borne in mind that revenue refers only to the gross receipts of economic benefits received and receivable by the organization on its account. Payments received on behalf of a third party, such as taxes on goods and services and taxes on Additional cost, are not economic benefits received by the organization and do not lead to an increase in capital, since they are subject to transfer to the budget. Therefore, they are not included in revenue. Similarly, the agent entity receives gross inflows of economic benefits from amounts collected on behalf of the principal (guarantor) that do not increase the capital of the agent entity. Thus, amounts collected on behalf of the principal are not revenue. Only commissions can be recognized as revenue here.
AT accounting There are two main methods for calculating revenue:
cash method- revenue is considered to be received on the accounts or in the cash desk of the enterprise cash payment or goods received in payment for obligations (barter).
accrual method- revenue is accrued when consumers have obligations to pay for the products or services of the enterprise. Most often, accrual occurs at the time of shipment to the consumer of products or services.
It is divided into several varieties:
Arithmetic. It's about the difference between costs and benefits. Costs are usually different, but income is expressed as gross income, that is, total. Therefore, profit is calculated differently.
normal. This refers to the normal, necessary income that arises from the conduct of a particular business. The value of this profit depends on the lost profit, that is, the entrepreneurial spirit of the businessman and alternative opportunities for investing capital.
Economic. This refers to the difference between economic costs, which include normal profits, and gross income. It is also called super profit.
Household. This is the sum of economic and normal profits. This is nothing more than the initial base in the process of distribution and use by the enterprise of the profits received.
Accounting. It is calculated according to the following criterion: it is necessary to subtract the explicit costs of the purchased (external origin) from the gross income. But if implicit costs are subtracted from this type of profit, then the result will be net economic profit.
In accounting, revenue is more often understood not as any proceeds from the sale, but as proceeds from the main activity, i.e. activities for which the company was founded. The remaining receipts are called income and expenses (other income, interest income).
In accordance with accounting rules, revenue is recognized in an amount calculated in monetary terms, equal to the amount of receipt of cash and other property and (or) the amount of receivables. In the financial statements (Profit and Loss Statement), revenue is indicated minus indirect taxes, in particular VAT, which are included in the cost of goods, but are actually withheld by sellers from the buyer for transfer to the budget.
Another feature of the reflection of revenue in reporting is that the amount received from the buyer will not always be full revenue for the organization. So, in commission trade (commission agent) receives from the buyer the proceeds, in which his remuneration is only a small part, and the rest of the amount is subject to transfer to the committent. For the commission agent, only his remuneration will be revenue.
Revenue arises from the organization not only when selling goods for money, but also, for example, when bartering. In this case, revenue is determined based on the cost of goods (values) received or to be received by the company.
Revenue is recognized in accounting under the following conditions (PBU 9/99):
The organization has the right to receive this proceeds (which follows from a specific contract);
The amount of proceeds can be determined;
There is confidence that as a result of a particular operation there will be an increase in the economic benefits of the organization;
The right of ownership (possession, use and disposal) of the product (goods) has passed from the organization to the buyer or the work has been accepted by the customer (the service has been rendered);
The costs incurred or to be incurred in connection with this transaction can be determined.
Generally, revenue is recognized without regard to actual cash receipts (accrual basis). However, for small enterprises, it is possible to take into account revenue as funds are received (cash basis).
In the process of production, performance of work, provision of services, a new value is created, which is determined by the amount of proceeds from sales.
The proceeds from the sale is the main source of reimbursement for the funds spent on the production of products (works, services), the formation of funds of funds, its timely receipt ensures the continuity of the circulation of funds, the uninterrupted operation of the enterprise. Untimely receipt of revenue entails interruptions in activities, reduced profits, violation of contractual obligations, and penalties.
Under IAS 18, revenue must be measured in accounting records at the fair value of the consideration received or receivable.
The amount of revenue from a transaction is typically determined by an agreement between the entity and the buyer or user of the asset. It is measured at the fair value of the consideration received or receivable, taking into account the amount of any trade or wholesale discounts provided by the company. Consideration is usually expressed in the form of cash or cash equivalents, and the amount of revenue is the amount of cash or cash equivalents received or receivable. At the same time, the Standard emphasizes that if a delay in the receipt of cash (or cash equivalents) is provided, fair value compensation must be less than the nominal amount of cash actually receivable.
The standard gives an example when an organization, as consideration for the sale of goods, provides an interest-free loan to the buyer or accepts from him with interest rate below market. Such a transaction is effectively a financing transaction, with the fair value of the consideration determined by discounting all future cash inflows using an implied rate of interest.
In accordance with IAS 39, the difference between fair value (discounted value) and the nominal amount of consideration is recognized as finance (interest) income.
Where the consideration is not cash but is exchanged for goods or services of a similar nature and value, no revenue arises. When exchanging various goods, revenue is measured at the fair value of the goods or services received, less cash or cash equivalents transferred. If the fair value of the goods or services received cannot be measured reliably, then revenue is measured at the fair value of the goods or services given up, adjusted by the amount of cash or cash equivalents given.
Recall that, in accordance with IFRS, fair value is the amount for which a liability can be exchanged or settled in a transaction between knowledgeable, willing parties.
The revenue recognition criteria in IAS 18 Revenue should generally be applied to each entity's transactions on a case-by-case basis. However, under certain circumstances, it is necessary to apply them to individual elements of one transaction in order to correctly reflect the sources of revenue. For example, if the sale of a product involves the subsequent maintenance of the sold product, the price of which can be determined, the service fee is not recognized at the time of revenue recognition, but is recognized over the period during which the sold product is serviced.
Conversely, however, the recognition criteria may apply simultaneously to two or more transactions when they are linked in such a way that their commercial effect cannot be determined without considering the series of transactions as a whole. The standard gives an example when an enterprise can sell goods and at the same time enter into an additional contract for the repurchase of these goods in the future, thereby, in essence, leveling the operation, and hence the receipt of revenue. In such cases, both transactions are considered together and can be treated as a financing transaction.
If the receipt of revenue to the cash accounts of the enterprise is the completion of the circulation of funds, then its use is both the beginning of a new circulation and the stage of distribution processes, at which the revenue base of budgets of different levels is formed and thereby the national interests are provided, as well as own financial resources are formed. enterprises.
the proceeds received on the accounts of the enterprise are used primarily to pay the bills of suppliers of raw materials, materials, semi-finished products, components for trade items, spare parts for repairs, fuel, energy. From the proceeds, it is paid, the depreciation of fixed assets is reimbursed, and the profit of the enterprise is formed.
Directions for the use of proceeds are shown in the diagram:
The concepts of revenue and profit are different, as in economic sense, as well as in practical terms. Profit, in principle, reflects the amount of revenue minus all types of expenses. But it cannot be said that profit from revenue depends in direct proportion, since there is a so-called effect of operating leverage. The effect of operating leverage is that with the growth of sales revenue, profit grows at a faster rate than revenue. This effect is explained by the fact that there are fixed costs in the cost structure.
The effect is calculated as the ratio of gross margin to profit.
DEFINITION
Sales revenue includes the amount of monetary resources that goes to the accounts of the organization for the sold products (work, service).
The revenue indicator is the most important source that participates in the formation of the own financial resources of any enterprise.
Revenue and profit are not equivalent concepts, since profit is revenue minus costs (expenses). Also, revenue and income are not equivalent, since income is revenue (turnover) minus cost.
Revenue includes cash that the company receives (recovers) from the sale of goods and services. The revenue formula looks like this:
B=S(Zzak)+DS
Here B is revenue,
With the cost of production,
Zak - purchase price,
DS - value added.
Another revenue formula is determined by multiplying the selling price of a good (service) by the quantity of goods sold:
B = St-t * Q
The formula for revenue from the sale of goods for the relevant period is calculated by taking into account sales volumes and prices. The sales revenue formula is as follows:
Here B is the proceeds from the sale of products,
Q is the quantity of goods sold,
P is the price of the goods sold.
Revenue from the sale of goods(services) consists of cash or other property in monetary terms, which are received or are to be received in the sale of goods (products, services, works) at prices, tariffs in accordance with the concluded agreement.
The activity of the enterprise is characterized in several directions:
Total revenue can be determined by summing the revenue from these three areas. But, nevertheless, however, the main value in it is the proceeds from the main activity, which determines the whole meaning of the existence of enterprises.
The revenue of the enterprise plays a large role in the functioning of the enterprise. The value of revenue is determined as follows:
EXAMPLE 1
EXAMPLE 2
Alexander Myasnikov, candidate 
From the example above, it can be seen that there are several formulas for calculating the proceeds from the sale of products. However, there are several calculation methods that can cause differences in revenue figures for a period.
Let's calculate the revenue of the fruit and vegetable tent, which was opened a little later by entrepreneur Ivan. Let's assume that in a day from I sold:
