The Accounting of the Result of the Financial Year and Its Components

Abstract

The performance that companies achieve is valuable information for most users and is essential in a market economy, while the provision of this information on the results achieved by the company as a result of carrying out activities to accomplish the set objectives is based on the data and information presented in the company’s annual financial statements.The scientific approach aims to present the role and importance of the profit and loss account, as well as of the main elements that generate it, in accordance with current legal provisions and accounting standards. The main aim was to summarize the basic principles and the manner in which they are documented in the accounting records to calculate profit or loss and profit redistribution.