FEATURES OF FORMATION, ACCOUNTING AND ANALYSIS OF FINANCIAL RESULTS AT DOMESTIC AGRICULTURAL ENTERPRISES

The article defines and summarizes the modern interpretation of the essence of financial results in regulatory and legal acts and scientific publications. The peculiarities of agricultural production, which affect the accounting process of financial results, have been studied. The theoretical foundations of the essence, formation and use of the company’s profit were considered and studied. In order to have a deeper and correct understanding of the profit, it was classified according to the main classification features. Profit functions are analyzed and distinguished: valuation function, distribution function and incentive function. The methodological and organizational principles of accounting for the formation and distribution of financial results of agricultural enterprises have been studied. The principles of accounting were studied according to national standards, applying the standards of P(S)BO 15 “Income” and P(S)BO 16 “Expenses” and according to international standards – standards of IAS18 “Income”. The procedure for forming the financial result of the enterprise is given. Management of profitability (break-even) of activities is the primary task of the enterprise, therefore the article pays great attention to the analysis of financial results and factors of their formation.


Statement of the problem
The efficiency of the economy directly depends on the stable development of all its branches, and, in particular, the agricultural sector, the subjects of which are particularly acutely in need of attracting additional resources.The practical implementation of the above is based on the relevant information base, based on which is reliable and operational data, in particular regarding the financial results of the activity.
The specificity of economic activity by subjects of agriculture is determined by its features, various organizational forms and seasonality.This actualizes the need to solve problems related to the management of agricultural enterprises from the standpoint of ensuring their sustainable development and recognition by subjects of increased public interest.With such an approach, complex information produced by the accounting and analytical system and related to all aspects of enterprise activity, in particular, financial results, acquires special importance.
The relevance of the research topic lies in the fact that the effectiveness of the enterprise's activity is revealed in financial and economic indicators, which in a generalized form reflect the results of the activity and the economic development potential of the business entity.The main final indicator of the effectiveness of economic activity is profit, the value of which in the conditions of the difficult economic situation in the country, limited bank crediting of business entities, low level of competitiveness and innovative development of enterprises is difficult to overestimate.

Objectives of the article
Determining the financial results of the activity of any enterprise depends on the methodology of their formation and accounting.The existing shortcomings of the accounting methodology of income and expenses cause the fact that neither the financial nor the tax statements reflect the real amount of profit or loss.After all, regulatory documents regarding their definition are developed by various state structures: regulatory documents regulating financial accounting are developed by the Ministry of Finance of Ukraine, and recommendations and instructions on the organization of tax accounting are developed by the State Tax Administration of Ukraine.The purpose of the article is to research and generalize the peculiarities of accounting of financial results in agricultural enterprises.

The main material of the research
A characteristic feature of an enterprise in market economic conditions is its economic isolation and the organization of financial and economic activity on the basis of full self-financing and self-sufficiency.In this regard, the issue of clarifying the essence of financial results (profit or loss) is of particular importance.After all, profit is the main goal and motive of entrepreneurial activity, a material source of economic and social development, investment and innovation activity, and occupies a prominent place in the system of valuable tools of commodity production.
Profit is an important tool for the transfer of capital to industries that determine scientific and technological progress and the concentration of financial resources in enterprises whose administration and owners effectively manage them.
Profit is an economic category that is a set of economic relations that reflect the result of the interaction of all factors of production in the form of an additional product, and is a part of the company's income that remains after covering the expenses incurred in the course of economic activity.
As an objective economic category, profit is created in the sphere of production and realized in the process of exchange.However, the absolute amount of profit cannot be a sufficient basis for characterizing the efficiency of the enterprise, because the amount of profit it receives depends (other things being equal) on the volume of production, which is determined by many other factors.Therefore, the efficiency of the business entity is determined by relative indicators that reflect the degree of profitability in relation to one or another factor of production.
The analysis of literary sources regarding the prerequisites for the formation and determination of financial results of activity shows the ambiguity of the concept of "profit".In various interpretations, the causal connection of the origin of profit is often not so much proven as assumed.
For some scientists, profit is labor income, a reward for entrepreneurial activity, for others it is the additional value of a newly created product.It can be about the income received by the enterprise, as well as about the benefit that the consumer will receive, or about the profit (benefit) brought to the enterprise, the consumer, society from the implementation of this or that activity.
The generalization of the interpretation of "profit" by various authors made it possible to conclude that profit is a general economic category.It represents a part of the income of a specific operating enterprise, obtained under the influence of the internal and external environment and the level of development of entrepreneurship, it is the difference between the income that was received from all types of activities and the expenses of the enterprise that were incurred in the process of obtaining these incomes, and is used for implementation of the process of extended reproduction and satisfaction of the interests of enterprise owners, employees, investors and the state.
Profit is one of the main economic categories, which reflects the relations that are formed in the production process.This is a generalizing indicator that synthesizes all parties, all aspects of business entities and ensures their stable functioning.
Profit is the result of an entrepreneur on invested capital expressed in monetary terms, which characterizes his reward for the risk of entrepreneurial activity, and expresses the difference between the total income and the total costs incurred in the process of carrying out this activity [2].
In order to have a deeper and correct understanding of profit, it is important to pay attention to approaches to classifying profit according to different criteria.In this regard, according to some authors [3], there are now more than 20 classification signs of profit, which in itself eloquently demonstrates the state of the problem and calls into question the possibility of its unambiguous solution (table 1).
Profit performs a number of functions: Evaluation function.Profit is an important comprehensive indicator that reflects the final result of the enterprise's work in a cost form.It accumulates the results of all aspects of its activity: the growth of production and its implementation, the effectiveness of the use of material, labor and financial results available at its disposal.
The financial condition of the enterprise, the fulfillment of its obligations to the budget, banks, suppliers of material resources depends on the level of implementation of the profit plan.The full use of this function is possible only in the conditions of a market economy, which provides for the freedom to set prices, choose the supplier and the buyer [5].
Distribution function.Its meaning is that the profit is used as a tool for dividing the net income of society into a part that accumulates in the budgets of different levels and remains at the disposal of the enterprise and is a source of its extended reproduction.The object of the state's economic interests is the part of the profit that is paid in the form of taxes and mandatory payments.
The economic interest of the enterprise as a producer finds its generalization in the amount of profit that remains at the disposal of the enterprise and is used to solve the production and social tasks of its development.
The economic interest of workers is primarily related to the amount of profit that is directed to social development.The owner of the enterprise is primarily interested in the size of the dividend payment fund and that part of the profit that is related to production development, reconstruction and technical rearmament of production, improvement of technology, capital growth.
Stimulating function.Earning a profit stimulates the most effective use of economic resources, cost reduction, implementation of achievements of scientific and technical progress, development of new industries [2].
To determine financial results in accounting, a consistent comparison of income and expenses incurred to obtain these incomes from all types of activities is assumed [1].
In accounting, there are several methods of determining financial results: one of them is based on accounting with the deduction of the cost of production in large enterprises, and the second, which involves determining the results of activity as a whole, in enterprises that fall under the status of small.A separate method of calculations is provided for agricultural enterprises, in accordance with the requirements of P(S)BO 30 "Biological assets".
After the end of the reporting financial year, the accounting department sums up the final results of the enterprise's work for the year -compares the income of the reporting period and the expenses incurred to obtain them, and determines the financial result [7].
The methodology of forming information about income and expenses in accounting and its disclosure in financial reporting is established by accounting standards.So, enterprises that keep records: according to national standards -apply the norms of P(S)BO 15 "Income" and P(S)BO 16 "Expenses"; and according to international standards -standards of IAS18 "Income".There is no special standard for recognizing and reflecting expenses in the IASB.Therefore, such enterprises should be guided by other IAS standards in order to generalize information about costs, which set out the criteria for recognizing assets and liabilities for certain business operations.
The financial result is determined in terms of each type of enterprise activity (operational, financial, other) with the periodicity established in the accounting policy of the enterprise (month, quarter, year) [10].
Account 79 of the same name, which has three subaccounts, is assigned to generalize information about financial results in accounting: -791 "Result of operating activities".Income from the sale of finished products, goods, works, services and other operating activities is reflected in the credit of the subaccount in the order of closing the accounts (accounts 70 "Revenue from sales", 71 "Other operating income"), in the debit -in the order of closing the accounting accounts, the cost of sales of finished products, goods, works and services, administrative, sales, other operating costs (90 "Cost of sale", 92 "Administrative costs", 93 "Sales costs", 94 "Other costs of operational activity"); -792 "Result of financial operations".The credit of the subaccount shows the write-off in the order of closing accounts of income from equity participation and other financial income, the debit shows the write-off of financial expenses from accounts 95 "Financial expenses" and 96 "Loss from equity participation"; -793 "Result of other activity".The credit of the subaccount shows the write-off in the order of closing accounts of income from investment and other activities of the enterprise, the debit shows the write-off of expenses from account 97 "Other expenses".We note that for summarizing information on expenses, enterprises have the right to use only class 8 accounts "Expenses by elements" (without using class 9 accounts).They debit the sub-accounts of account 79 with amounts from the credit of accounts 23 "Production" and accounts of class 8 in the order of closing these accounts.
We present the above in Table 2.
After determining the financial result before taxation, the accountant must calculate and close the amount of income tax on account 79.
Enterprises that adjust the financial result for taxation purposes must show the income tax on account 98, taking into account the provisions of P(S)BO 17 "Income Tax" or IAS12 "Income Taxes" [4].
At the same time, temporary differences between the valuation of the asset or liability according to the financial statements and the tax base should be taken into account and at the end of the year, deferred tax assets (identical account 17) or deferred tax liabilities (identical account 54) should be calculated.
Taking into account the current income tax, the amount of which is determined in line 17 of the income tax declaration (form approved by Order No. 897), as well as adjustments on account 17 or 54, account 98 can be closed by debiting both the debit and credit of the account 79: Dt 98 -Ct 17, 48, 54, 64, 79; Let's schematically depict the closing of account 79 "Financial results" and the write-off of financial results to account 44 "Retained earnings" (uncovered losses) in Figure 1.
The method of accounting for the use of the obtained net profit is shown in Table 3.
The formation of financial results is reflected in the financial statements.
As you know, the general criteria for recognizing an item in financial statements are the probability of an increase or decrease in future economic benefits associated with this item and the ability to reliably determine the value of the item.They are established by NP(S)BO 1. NP(S)BO 1 details these criteria regarding income and expenses.More precisely, income should be reflected in the statement of financial results when, as a result of a business transaction, economic benefits in the form of inflow of assets increase or liabilities decrease, leading to an increase in equity (except for an increase in capital at the expense of owners' contributions).Expenses are defined in the "Report on financial results": -at the moment of the decrease of the asset or the increase of liabilities, which leads to a decrease in the equity capital of enterprises (with the exception of a decrease in capital due to its withdrawal or distribution to owners), provided that the cost estimate can be reliably determined; -on the basis of a systematic and rational distribution (for example, in the form of depreciation) during those  reporting periods when the relevant economic benefits associated with the use of the relevant asset are received; -immediately, if the economic benefits do not correspond or cease to correspond to their recognition as an asset of the balance sheet.
Therefore, the financial result of the company's activity is not only the final indicator of the company's performance for the year, but also information for making further management decisions.Therefore, it is important for users of financial statements to know not only the amount of profit or loss, but also from which activity (operational, financial, investment) the results were obtained [10].
As a rule, the enterprise receives a significant part of its profit from operational (main) activities, and not every enterprise carries out financial and investment operations.But if they are available in the company's activities, the circle of sources of profit generation expands.
Management of the profitability (breakeven) of the activity is the primary task of the enterprise, therefore much attention is paid to the analysis of financial results and the factors of their formation.
Taking into account the fact that the activity of a business entity can be not only profitable, but also unprofitable, and is formed under the influence of internal and external environmental factors, accounting and analysis provide a general assessment of financial results, which are characterized by a system of absolute and relative indicators.
Absolute indicators are the amount of profit (or loss) according to the structure of its formation or distribution and use.To date, according to NPSB1 "General requirements for financial reporting", the following indicators of financial results are distinguished: -gross profit (loss), as the difference between the amount of income (revenue) from the sale of products and the production cost of the products sold; -financial result from operating activities (profit or loss), as the difference between the sum of operating income and operating expenses; -financial result before taxation (profit / loss); -net profit (loss).
In addition, it is appropriate to mention the legality of calculating such indicators of financial results, such as: financial result from a single economic transaction, and financial result (profit/loss) of a separate type of product or product.
In addition to absolute indicators of financial results, relative indicators of profitability (profitability) are widely used in the analysis [9].
If the amount of profit shows the absolute effect, then the profitability indicator characterizes the measure of this efficiency, that is, the relative degree of profitability.In general, the profitability ratio is calculated as the ratio of profit to costs or used resources (capital).Profitability is measured in%.For this, the profitability ratio is multiplied by 100 %.
Its economic meaning, interpretation and application depend on the internal construction of the coefficient (combination of indicators in the numerator and denominator).The most used indicators of profitability are: profitability of assets (economic profitability), total profitability (profitability of production capital); return on equity (financial return); profitability of implementation (commercial profitability); profitability of a particular type of product or product [9].
The purpose of the analysis of financial results is to determine the completeness and quality of their receipt, to evaluate the dynamics of absolute and relative indicators, to find out the direction, degree and share of the influence of individual factors on changes in profit and profitability, to identify and evaluate possible reserves of their growth.
The profit earned by the company according to the results of the year is subject to certain distribution.Some part of the profit is used to pay dividends to the owners, the formation of reserve capital, and the other is a source of expanded activity reproduction.
The profit distribution mechanism should contribute to the further development of the enterprise, the growth of its economic potential, ensuring the fulfillment of statutory requirements and satisfying the interests of the owners and founders of the enterprise.
When analyzing the distribution of profits, it should be borne in mind that the ratio of the net profit of the company in the form of dividends, the reinvested part of the profit and the free balance from the undistributed profit depend on a number of factors: the nature of the formation of the company, the period of its operation, industry affiliation, the amount of financial results obtained, shares founders and the amount of income on invested capital, considerations for reinvestment [9].
During the analysis of financial results, the following tasks are solved: 1. Assess the level of financial results in general and the relationship between individual indicators.
2. To study the dynamics of the company's financial results over a number of periods and to identify the main trends in their changes.
3. Assess the quality of financial results.4. Identify the influence of factors on changes in operating profit and gross profit from the sale of goods.
5. Carry out an analysis of break-even activity and identify the degree of operational risk of the enterprise.
6. Analyze indicators of use (distribution) of profit.7. To assess the level, dynamics and factors of change in indicators of profitability of activity.
8. Identify the reserves of growth of financial results and profitability of the enterprise and develop a system of measures aimed at their mobilization [10].
During the analysis of financial results, research is carried out in two aspects.
In the first, the financial result is evaluated as the degree of achievement of the final goal and determination of the efficiency of production and financial activity.
Here, the priority is to assess the level of use of favorable opportunities and lost benefits.
The second aspect involves determining the priorities of capital investment by types of activities, by scale, in strategic and tactical dimensions, which give the maximum increase in financial results.
For external analysis, such sources of information are used as: annual financial statements, namely: "Report on financial results (Total income)" in form No. 2; "Balance Sheet (Report on Financial Status)" in form No. 1; "Report on equity" in form No. 3, and "Notes to the annual financial statements" in form No. 5.If the analysis is carried out within the enterprise (the so-called internal analysis), then, in addition to the above information, for an in-depth analysis it is appropriate to involve: registers of synthetic and analytical accounting (Journal 6), data on accounts of the 7th, 8th, 9th classes of the Chart of accounts of accounting and individual accounts of the 2nd class (account 23 "Production") primary documents; order on the accounting policy at the enterprise; financial plan or business plan; non-system information (materials of oral surveys, questionnaires, observations, audit reports, conclusions of auditing and consulting firms, tax declarations, etc. [10]. The most comprehensive information on the financial results of the enterprise is displayed in the special form of financial reporting for No. 2 "Report on financial results (Report on total income)".Section 1 of the "Statement of financial results (Statement of comprehensive income)" is structured according to the classification of income and expenses by types of activities and functions, which ensures their consistent comparison to determine the net profit (loss) of the reporting period (table 4).
It should be noted that there are no articles in the "Report on financial results" that would directly reflect the effectiveness of investment and financial activities based on the comparison of income and expenses for these activities.
The content of the figures and tables shows that the financial results of enterprises have a multifaceted nature and are a synthesized reflection of the interrelationships and interdependence of all components of activity.
This means that the analysis of financial results should be carried out within the framework of a systematic approach, which involves the study of a complex of absolute and relative indicators and factors of financial results at all stages of their justification, formation and receipt, distribution and use.

Fig. 1 -
Fig. 1 -Determination of the financial result of the activity

Table 1 -
Classification of income by main features By definition objectsProfit for the enterprise as a whole, in terms of spheres of activity, by structural subdivisions, by individual operations, in terms of individual types of products According to the regularity of formation Profit from ordinary activities generated regularly, profit generated episodically from extraordinary events (charity for the benefit of the enterprise, etc.)By the period of formation Profit of the reporting period, profit of past periods

Table 2 -
The order of formation of the financial result of the enterprise

Table 3 -
Methodology of accounting for the use of the received profit