Abstract
Introduction. The article analyzes the norms of current regulatory legal acts regarding the use of profit and taxation of operations caused by the accrual of dividends. The economic essence of retained earnings (uncovered loss) and the procedure for its calculation are highlighted. The directions of profit use are characterized. External and internal factors influencing the distribution of net profit are determined. The areas of profit distribution that affect the financial stability of the issuer of corporate rights are indicated. The areas of profit distribution affecting the extraction of resources from the economic turnover of the issuer of corporate rights are highlighted. The procedure for accounting display of transactions caused by the formation of profit and its use is outlined. The economic essence of dividends and their impact on the financial condition of both issuers of corporate rights and founders is revealed. The procedure for calculating the dividend advance payment from income tax in the part of taxation of dividends paid to foreign investors is highlighted. The procedure for taxation of income from the source in Ukraine for non-resident individuals is described. It is proposed to improve the analytical accounting of the use of profit. Attention is focused on the fact that in order to strengthen control over the targeted use of profit, it is advisable to display the distribution of profit in the following directions in the Equity Report: 1) for reinvestment; 2) for consumption. Goal. Elucidation of the procedure for the accounting display of the use of profit and the formation of proposals for improving the accounting of the object under study. Method (methodology). General scientific methods (analysis, synthesis, induction and deduction), empirical theoretical (formalization, hypothetical) and empirical methodical methods of research (calculation-analytical, implementation of results in practical activities, reporting display of economic activity). The results. For the purpose of reliable accounting and reporting display of operations caused by the use of profit, it is proposed to display such operations in the section of the following analytical accounts: 4431 "Profit used for reinvestment of economic activity" and 4432 "Profit used for the payment of dividends". In the Report on equity, it is advisable to display the distribution of profit in the following directions: for reinvestment; for consumption. These proposals are aimed at increasing the informativeness of the accounting and reporting data of the issuer of corporate rights.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.