Financial results of the organization’s activities as an object of accounting and their regulatory regulation

Abstract

The income statement is an accounting form that reflects the financial results of the organization’s activities for the reporting period and contains data on revenue and expenses from ordinary activities, as well as other income and expenses. Accounting for financial results is necessary to assess the economic life of the enterprise. Information about the company’s financial results is important both for internal analysis and for interaction with potential partners. With the help of these indicators, it is possible to analyze the efficiency of the enterprise as a whole and develop a further strategy of behavior in the market, therefore, the correct accounting of financial results is very important from the point of view of the economy. The subject of the research is the report on financial results. The purpose of the report on financial results is formulated in the article, its characteristics are given, and the article also substantiates the necessity and importance of analyzing the financial results of the organization. So, in the conditions of escalating economic and political tension in the modern world, the procedure for the formation, analysis and application of financial results by organizations becomes even more relevant. For effective analysis, it is important to organize timely and accurate accounting of the financial results of the organization. Without a competent analysis of the results of the financial activity of the enterprise and the identification of factors affecting this activity, it is impossible to increase the level of profit and profitability.

The Impact of International Financial Reporting Standards on Global Accounting Practices

“…This confirms that accounting earnings reflects a company's financial health and potential to create value for shareholders, making it one of the key performance metrics used by analysts and investors to assess a company's ability to create sustainable profits. (Moskalenko & Smagina, 2023;Puspitawati & Fitrios, 2023). The theoretical relationship between accounting earnings and abnormal returns is based on the premise that companies that report higher accounting earnings tend to show better stock performance.…”

“…Abnormal returns, calculated as the difference between actual and expected returns, often reflect the market's reaction to a company's financial disclosures. (Mauliyah, 2022)A study by Moskalenko and Smagina (2023) and Puspitawati and Fitrios (2023) emphasizes that accounting earnings provide critical insights into a company's operational efficiency and success in generating profits, directly affecting investor perceptions and performance. This positive correlation between accounting earnings and abnormal returns underscores the importance of earnings information in predicting market reaction and future profitability, creating the basis for a significant relationship between internal financial performance and market perception.…”