Income Statement Research Articles

Analysis of Selling Price Determination in Maju Sejahtera Cooperative Beef Cattle Farming Business: Implementation of Accretion Accounting

Aims: This study aims to analyze the accounting for biological assets and the determination of selling prices in the Maju Sejahtera Livestock Production Cooperative (KPT) based on PSAK 69. Study Design: This study uses a qualitative descriptive method to describe how the accounting treatment of biological assets and the determination of the selling price in the Maju Sejahtera Livestock Production Cooperative (KPT) is based on PSAK 69. Place and Duration of Study: Determination of the research location was carried out purposively, namely at the Maju Sejahtera Livestock Production Cooperative, Tanjung Sari District, South Lampung Regency. This research was carried out from February to July 2024. Methodology: The data collection method in this study used semi-structured interviews and literature studies. Respondents were determined using purposive sampling. These criteria are that respondents must be involved in preparing financial reports and determining the selling price of cattle. Based on these criteria, the respondents of this research are the treasurer and marketing department who are members of KPT Maju Sejahtera, totaling 3 people. Meanwhile, secondary data was obtained through the documentation method, namely from the financial report data of KPT Maju Sejahtera. Results: KPT Maju Sejahtera at the end of each period did not require re-measurement of biological assets using fair value. KPT Maju Sejahtera has not grouped biological assets into productive and non-productive groups and has not reconciled changes in biological assets either narratively or quantitatively in presentation in the financial statements. In addition, KPT Maju Sejahtera discloses increases or decreases in the value of biological assets in the inventory account in the Balance Sheet, which should be disclosed in the Income Statement. Conclusion: The accounting treatment of KPT Maju Sejahtera's biological assets is in the form of recognition of biological assets, measurement of biological assets, presentation of biological assets, and mapping of biological assets are not in accordance with PSAK 69. In addition, the selling price set by KPT Maju Sejahtera is based on market prices, not based on costs incurred.

The Interaction of Global Economy Mobility on the Financial Performance of Flagged Airlines

This study examines the impact of global economic mobility and domestic production on revenue and EBITDA, which are income statement performance indicators of flagged carrier’s airline companies. The research question is whether the global economic trade mobility and domestic production will lead to an effect in the number of individuals traveling, and thus eventually affect the revenue and profitability performance of airline companies. There are studies in the literature that have selected macroeconomic indicators as affecting travel volume and financials. In this study, trade openness and direct investments represent the global economy's mobility. Short-term interest rates, oil prices and exchange rates are included in the model as a control variable. The results of the panel model indicate that trade openness have a positive effect on firms' revenues. Airline companies should develop their financial forecasts by monitoring the macroeconomic indicators that have shown significant results from empirical analysis.

Penyajian laporan keuangan entitas berorientasi nonlaba berdasarkan ISAK Nomor 35 pada Yayasan Panti Asuhan “Pononiungan” Bolaang Mongondow

A non-profit entity is one that is engaged in community service and has no intention of seeking profit. Non-profit entities obtain their funds from donors or contributors who do not expect a return on their investment. It is crucial that non-profit entities be held accountable, particularly in light of the growing number of foundations and community organisations. Funders and the community must be provided with clear financial reports that explain the entity's performance and resources. This study will determine the presentation of financial statements of non-profit entities based on ISAK 35 at the Pononiungan Orphanage Foundation in Bolaang Mongondow. This thesis employs a descriptive qualitative analysis method. The results are clear: the Pononiungan Orphanage Foundation in Bolaang Mongondow has adjusted its financial statements to align with the ISAK Number 35 standard. This comprises comprehensive income statements, cash flow statements, net asset change statements, and notes to the financial statements.

Assessing Large Language Models Used for Extracting Table Information from Annual Financial Reports

The extraction of data from tables in PDF documents has been a longstanding challenge in the field of data processing and analysis. While traditional methods have been explored in depth, the rise of Large Language Models (LLMs) offers new possibilities. This article addresses the knowledge gaps regarding LLMs, specifically ChatGPT-4 and BARD, for extracting and interpreting data from financial tables in PDF format. This research is motivated by the real-world need to efficiently gather and analyze corporate financial information. The hypothesis is that LLMs—in this case, ChatGPT-4 and BARD—can accurately extract key financial data, such as balance sheets and income statements. The methodology involves selecting representative pages from 46 annual reports of large Swiss corporations listed in the SMI Expanded Index from 2022 and copy–pasting text from these into LLMs. Eight analytical questions were posed to the LLMs, and their responses were assessed for accuracy and for identifying potential error sources in data extraction. The findings revealed significant variance in the performance of ChatGPT-4 and another LLM, BARD, with ChatGPT-4 generally exhibiting superior accuracy. This research contributes to understanding the capabilities and limitations of LLMs in processing and interpreting complex financial data from corporate documents.

Application of SAK ETAP in the Financial Statements of Savings and Loans Cooperative

The general background the financial statements of cooperatives are essential for transparent and accountable operations, particularly in non-public entities like Savings and Loans Cooperatives. Specific background the Savings and Loans Cooperative (KSP) "BAHAGIA" has been operating since 1980, but the application of SAK ETAP (Financial Accounting Standards for Entities Without Public Accountability) in its financial reporting remains incomplete, particularly in its notes to financial statements and cash flow presentation. Knowledge gap while SAK ETAP provides a standardized framework, many cooperatives, including KSP "BAHAGIA," struggle to fully implement it due to a lack of understanding and technical capacity. This study aims to analyze the extent to which SAK ETAP is applied in KSP "BAHAGIA"'s financial reports, identify gaps in compliance, and offer recommendations for improvement. Results the findings reveal that while KSP "BAHAGIA" adheres to some SAK ETAP requirements, such as balance sheets and income statements, significant discrepancies exist in the notes to financial statements and the exclusion of investment property in cash flow reports. Novelty this research highlights a critical gap in financial reporting for non-public cooperatives, emphasizing the need for targeted education and training for cooperative management in SAK ETAP compliance. Implications the study's recommendations can help KSP "BAHAGIA" and similar cooperatives improve financial transparency, ultimately enhancing member trust and cooperative governance. Highlights: Incomplete SAK ETAP implementation affects financial transparency in cooperatives. Key discrepancies found in notes to financial statements and cash flow reporting. Improved SAK ETAP education for cooperative management is crucial for compliance. Keywords: Financial Reporting, Cooperatives, SAK ETAP, Non-Public Entities, Compliance

Financial Statement Design at Aura Taylor Business in Talaud Islands Regency

This research aims to apply the Financial Accounting Standards for Micro, Small, and Medium Enterprises (SAK EMKM) and design financial statements for the Aura Taylor business using accounting software, specifically Microsoft Excel. The research utilizes a descriptive qualitative method, providing solutions regarding the use of Microsoft Excel software in preparing financial statements. The main instrument is the researchers themselves, with additional instruments including interview sheets and transaction documentation from the Aura Taylor business. This research shows that the entity has not yet applied the Financial Accounting Standards for Micro, Small, and Medium Enterprises. The financial recording process is still manual, consisting of cash receipts and cash disbursement records. The design of Aura Taylor's financial statements is created using functions, formulas, and menus in Microsoft Excel, forming a system comprising menus and submenus. The submenus include chart of accounts, general journal, ledger, worksheet, and financial statements which consist of the statement of financial position, income statement, and notes to the financial statements.

ANALISIS LAPORAN KEUANGAN UNTUK MENGUKUR KESEHATAN KOPERASI MENURUT PERATURAN DEPUTI BIDANG PENGAWASAN KEMENTRIAN KOPERASI DAN USAHA KECIL DAN MENENGAH NOMOR 06/Per/Dep.6/IV/2016 PADA KOPERASI GURU BINA MANDIRI

This study analyzes the financial statements and health level of the Guru Bina Mandiri savings and loan cooperative. This research uses ex post facto methods. Data is obtained through financial statement documents such as balance sheets, income statements (SHU), and income statements. The indicators used to assess the health of cooperatives refer to the Regulation of the Deputy for Supervision of the Ministry of Cooperatives and Small and Medium Enterprises number 06 / Per / Dep.6 / IV / 2016. In this study, the results obtained for the 2023 Bina Mandiri Teacher Cooperative got a score of 42.45 at <51.00 with the predicate in special supervision.

A Proposed Model to Measure the Impairment Value of Fixed Assets with the Need for Tax Recognition

International accounting standards require, in particular the impairment of (36) asset value standard No (31), re- evaluation of assets to display the value of fair value as the replacement value at the end of the period or fiscal year of the disclosure of assets, real value, the represent philosophy of accounting to relevant of different models to call the fair values, especially in case of using methodology - based pricing capital asset model. The researcher presented a model for measuring the impairment of the book value of assets form, which contributes to the measurement of accuracy of the fixed measurement of accounting income and taxable income help guide the preparation of financial statements in the presentation of fixed assets as fast as they converge with the fact that revenue and economic benefits of the asset in the financial period is ending. Because the accounting incases always different on taxable income for the application of the income tax act, although the act, to impose tax in net profit, which present the income statement prepared in accordance with the Egyptian accounting standards, but on grounds of maintaining the public revenues of ministerial decisions were issued contrary to that application and became the standard (31) can’t be applied when determining the tax base. Which led to a loss in its submission for income tax, which is a clear challenge, there is no application of some financial standards, which is what the researcher tried to show. He presented it to determine the tax impact of not applying the standard.

REFLECTIONS OF TFRS 16 LEASES STANDARD ON FINANCIAL STATEMENTS APPLICATIONS ON AIRLINE COMPANIES

This study aims to identify reflections of Turkish Financial Report 16 Leases Standard (TFRS 16) on financial statements of two airlines companies. In other words, it was tried to identify changes resulting from TFRS 16 in the study. In the study, quantitative and qualitative analysis methods were used. While quantitative method is ratio analysis, qualitative method is document analysis. To perform the ratio analysis, various assumptions were used. For example, it was assumed floating interest rate was out of the question for lease payments. To perform the analyses, information was obtained from company reports. Prior to performing the ratio analysis, the balance sheets and comprehensive income statements of two prominent airlines in Turkey for the year 2017. Specifically, it focused on converting off-balance sheet liabilities associated with operational leases into capitalised amounts. Based on results of the analyses, it was determined that due to TFRS 16. Based on the TFRS 16, the revised balance sheets show no change in current assets. Non-current assets, current liabilities, and non-current liabilities have all experienced a growth, but equity has decreased. There has been a decline in the cost of sales. This condition has resulted in a rise in gross profit.

Analisis Penggunaan Model Zmijewski (X-Score) dan Altman (Z-Score) untuk Memprediksi Potensi Kebangkrutan pada PT Waskita Karya Persero Tbk

This study aims to predict the potential bankruptcy of PT Waskita Karya Persero Tbk. Quantitative descriptive research type. The population used is the financial statements of PT Waskita Karya Persero Tbk with a sample of financial position reports and income statements from 2018-2023. Research data collection was carried out using documentation and literature studies. The analysis technique is the Zmijewski model (X-Score) with the three ratios, namely return on assets, debt ratio, current ratio and Altman model (Z-Score) with four ratios, namely the ratio of working capital to total assets, retained earnings to total assets, earning before interest and taxes to taotal assets, book value of equity to book value of debt. The research results of the Zmijewski model (X-Score) show that PT Waskita Karya Persero Tbk in 2018 is predicted to be a healthy company because the X-Score value is below the value of 0, in 2019-2023 it is predicted that the company has the potential fo bankruptcy because the X-Score value is above the value of 0. Meanwhile the Altman (X-Score) model shows that PT Waskita Karya Persero Tbk in 2018 is in gray zone because the Z-Score value is between 1.1 and 2.60, in 2019-2023 it is ini the danger zone because the Z-Score value is below the value of 1.1.

Accountability, Donor Funding and Non-Governmental Organisations in Kisumu County in Kenya

Accountability is an important aspect of all organisations today. Accountable NGOs have been found to receive large funding from donors and thus undertake development programs that alleviate human suffering. This study is set to establish the accountability of donor funding by non-governmental organisations in Kisumu County. The study adopted a descriptive survey design. The target population was the NGOs located in Kisumu County- Kenya. The population was made up of all the 187 NGOs in the region. The use of open-ended questions was justified because some of the information concerned sensitive matters of the NGOs, particularly those involving finances and governance. The study established that donor funding was dependent on the accountability mechanisms put in place by the implementing NGOs. The study revealed that NGOs were expected to keep a minimum set of financial statements, e.g. Statements of comprehensive income, statements of financial position and cash flow statements. The study revealed that community involvement in the oversight of NGOs was still not adequately practised and that satisfaction of the employees with their pay perks could not be established. Donors were keen on compliance with the laws of the country and involved the oversight bodies in checking the compliance and legitimacy of the NGOs before funding and partnering with them. It was established that donors expected performance measurements to be done and that NGOs prepared specific reports. The donors also demanded that the authenticity of the financial statements be verified by independent auditors. Therefore, this study recommends that NGOs develop proper and effective accountability mechanisms to measure performance and enhance legitimacy and accountability. This will include using proper performance measurement tools and compliance with donor and government regulations to secure sustained financing and ensure that the County's development agenda is achieved. The study further recommends that the NGOs procure the services of recognised audit firms that will offer value-adding audits, which, in effect, will boost donor confidence.

ANALISIS RETURN ON EQUITY (ROE) PADA PT. BANK TABUNGAN NEGARA, TBK

The objective of this research is to examine the Roe of PT Bank Tabungan Negara, Tbk. This study made use of quantitative descriptive research. Income statements, balance sheets, reports on net profit and equity, and other financial documents covering the years 2013–2022, were culled for this research using a purposeful selection methodology. Statistical analysis with SPSS version 27 and a one-sample t-test are the approaches used for analysis. Return on equity (Roe) for PT Bank Tabungan Negara, Tbk seems to be much lower than 12% for the industry, according to the data that is supplied. If the organization is having trouble meeting its profitability goals, then it has to pay more attention to its financial performance

Research on Financial Fraud Based on Changyuan Group's Acquisition of Changyuan and Eagle

In recent years, with the development of the China’s economy, in order to seek business growth points, the number of mergers and acquisitions of enterprises has increased rapidly. In the process of mergers and acquisitions, there are often some financial fraud behaviors, such as fictitious income and false statements, to push up the merger and acquisition premium, which will greatly damage the stability of the financial market and the legitimate rights and interests of investors. This paper adopts the financial fraud case of Changyuan Group's acquisition of Shanghai Heying Electromechanical Technology Co., LTD. in 2016 as an example, and combines the fraud triangle theory to analyze the motivation of financial fraud. According to the punishment announcement and other information, this paper analyzes the identification of financial fraud information with a three-dimensional model, analyzes and presents the consequences of financial fraud, and proposes the suggestions and enlightenment for subsequent M&A cases.

Web-Based Accounting Information System Design for Income Statements: a Case Study at Toko Amanah Kepanjen

The aim of this research is to offer an efficient business process modeling solution to address issues in preparing the income statement for Toko Amanah Kepanjen. This study is a Research and Development (R&D) project that employs the ADDIE method, which consists of Analysis, Design, Development, Implementation, and Evaluation stages. This method aids in designing a system that can identify and solve problems with a structured and systematic approach. The results indicate that the implementation of a web-based system is crucial to replace the existing manual system. The current manual system faces various issues, including difficulties in tracking revenue, inefficient data management, and the risk of human error in recording transactions. By implementing a web-based system, these issues can be effectively addressed through automation and data integration, thereby enhancing accuracy, efficiency, and transparency in the processes of booking and ready stock sales. The system also facilitates faster and more accurate reporting, and supports strategic decision-making based on reliable information.

ANALISIS RASIO PROFITABILITAS UNTUK MENGUKUR KINERJA KEUANGAN PADA CV PANEN JAYA

Thisl study aimsl to determinel the financial performance ofl CV Panen Jaya during the l2017 – 2021 periodl using the financial ratio lmethod, namely the profitability ratio. Thel variables ofl this study arel the financial statements for 2017 – 2021 as a variable (Xl) which isl referred tol as thel independent lvariable, and financial performance as a variable (Yl) which isl referred tol as thel dependent lvariable. The populationl of this study is the financial statements of CV Panen Jaya, while the sample uses financial reports consisting of income statements and balance sheets at CV Panen Jaya for the period 2017 - 2021. Datal collection isl carried outl using thel documentation lmethod. Datal analysis wasl performed with descriptivel analysis. Thel results ofl this studyl indicate thatl the profitability ratios in the 2017 – 2021 period canl be saidl to bel good becausel the companyl has a liquid financial condition. Basedl on thel results ofl calculating profitability ratios (Net Profitl Margin, Return On Assets) inl the period 2017 - 2021 the financial performance of CV Panen Jaya is considered good where each ratio value isl above thel average industry standard profitabilityl ratio value. Meanwhile, Returnl On Equity is considered unfavorable where each ratio value isl below thel industry averagel profitability ratio

Impact of the COVID-19 pandemic on the financial performance of hospitals according to hospital characteristics in Korea: An observational study.

The coronavirus disease-19 (COVID-19) pandemic had a profound effect on society and various industries. Moreover, hospitals experienced huge financial losses owing to COVID-19 prevention efforts. This study aims not only to comprehensively inspect the financial impact of the pandemic on Korean hospitals but also to consider financial performance by hospital characteristics. Data were collected from 255 general hospitals that uploaded their income statements on the website, and 1530 data points were collected from 2016 to 2021. We used the paired t-test, linear mixed-effects (LME) model in R software (Ver. 4.3.2). We then selected operating margin ratio (OMR) and total margin ratio (TMR) to measure financial performance and used location, type of hospital, and ownership as hospital characteristics. We found that OMR and TMR worsened after COVID-19 breakout, and the labor and management cost ratios increased. According to the LME model with hospital characteristics, the OMR of hospitals located in the capital area worsened more than that of hospitals in noncapital areas (β5 = -6.3, P < .01). Regarding type of hospitals, tertiary general hospitals maintained a surplus and recorded a better OMR than general hospitals during the pandemic (β6 = 9.5, P < .01). The OMR of public hospitals worsened more than that of private hospitals during the pandemic (β7 = -25.4, P < .01), but the TMR of public hospitals increased compared to that of private hospitals (β7 = 3.9, P < .01). We confirmed that the COVID-19 pandemic had a negative impact on the financial status of hospitals. Considering hospital characteristics, the impact of the pandemic on hospital financial performance differed based on location, type of hospital, and ownership. As the contributions of this study, the government could establish support policies such as government subsidies based on hospital characteristics and hospital administrators could set a contingency plan to mitigate national disasters.

Compatibility between the Auditor and the Institutional Investor and its Impact in Evaluating Requirements with International Accounting Disclosure Standards

The study examined the requirements of accounting disclosure standards from the perspectives of institutional investors and external auditors, highlighting the distinctions between their respective perspectives. due to the importance of the data generated in the financial statements that the institutional investor needs to make investment decisions, and the difference in viewpoints regarding the amount of data disclosure between the two parties. It focusses on outlining what needs to be reported in joint-stock firms' financial statements in a way that promotes objectivity in the financial statements and is transparent, appropriate, and adequate. The study had three main components: the literature and theoretical foundations of accounting disclosure and external auditors comprised the second axis, and the overall methodological framework of the study addressed the first.The idea of disclosure and transparency in the financial statement presentation was covered in the first topic, and the auditor's role and responsibilities in disclosure and transparency in financial reports were covered in the second. As for the third axis, it focused on the practical framework of the research, where an analysis of the sample members’ responses to questionnaire forms distributed to (100) external auditors and (100) institutional investors was presented. The questionnaire questions included three axes, the second axis, which dealt with the income statement's duties under accounting disclosure rules, and the first. It is focused on the balance sheet requirements of accounting disclosure rules. The requirements for accounting disclosure rules for contingent liabilities and events that occur after the budget were covered under the third axis. The research came to several findings after analysing the data for the questions using the SPSS statistical tool. The most important of which were :- The external auditor and the institutional investor have largely agreed upon the requirements of accounting disclosure standards for the income statement. The auditor is particularly interested in the paragraphs that discuss granting credit facilities and avoiding reliance on secondary sources of income, while the investor is more interested in the paragraphs that discuss income and expenses associated with the.fundamental income-generating activities When assessing the accounting disclosure requirements for the balance sheet, the institutional investor and the external auditor have a lot in common. The sections of the financial statements that highlight the uses of money and the requirement to disclose them to users, such as the institutional investor who was concentrating on these lines, are of particular importance to the auditor.due to the fact that they bear in It is fraught with dangers. The external auditor and the institutional investor have essentially reached consensus over their respective points of view when evaluating the accounting disclosure requirements for contingent liabilities and subsequent events . While the investor is primarily focused on the accounting disclosure, the auditor is especially interested in the criteria that revolve around the paragraphs referring to the total value of the provision for losses on loans and advances provided .requirements that place an abnormally high priority on risk In order to set disclosure standards and determine the quantity and quality of data that should be displayed in financial reports while maintaining the transparency necessary to achieve objectivity, the research advises considering the perspectives of the entities that stand to gain from the data generated in those reports as well as the regulatory authorities represented by the external auditor. These guidelines must be updated periodically since investor behaviour changes in response to political, social, and economic factors.

Impact of Accounting Recognition and Measurement on the Financial Reporting

In recent years, there has been an argument about whether or not the complicated figures could be reported in the balance sheets or in the income statements correctly. Intangible assets have become significantly vital in todays rapidly changing economy towards the achievement of business success across different industries. Their peculiar nature however poses significant challenges when it comes to valuation and accounting practices. This paper explores how intangible assets play a role in improving competitiveness, financial performance, as well as appraising and managing these assets effectively so as to optimize their value and support strategic decision-making. Moreover, the paper focuses on accounting treatment for research and development expenditures that illustrate the relationship between R&amp;D investments and creating intangible assets. Furthermore, it addresses new lease accounting standards influence financial reports and transparency. Based on examining best practices and prevailing trends, this article examines optimizing R&amp;D investments, managing intangible assets, and untangling issues of leasing accounting complexities such that will be useful for companies looking to improve their financial reporting processes as well as corporate decisions.

The Effect of Return on Assets, Current Ratio, Total Asset Turnover, and Debt to Equity Ratio on Stock Prices

The purpose of this study is to investigate the impact that ROA, CR, TATO, and DER have on the stock prices of oil and gas companies that are listed on the IDX between the years 2015 and 2022. In 2022, the stock prices of eleven oil and gas businesses that were included on the IDX fell. Those who suffered the most were Akra and Apexindo Pratama Duta. In spite of the fact that AKRA's ROA increase from 4.83% to 9.12% in 2021–2022, the company's shares fell. Between the years 2015 and 2022, the prices of petroleum and natural gas stocks on the IDX were impacted by carbon reduction (CR), taxation (TATO), and demand-to-recovery (DTR strategies). Some researchers, including Kasmir and Sumarsan, discovered that ROA increases stock prices whereas DER decreases them. There is a comparison made between mining stock prices, ROA, ROE, NPM, and DER. The abstract of the Indonesian oil and gas stock price demonstrates how the success of a company's finances influences market prices. A non-random selection of six organizations was made for the study based on certain criteria. Balance sheets, income statements, equity statements, and cash flow statements that have been audited are evaluated using descriptive and verification statistical analysis. It would appear that the ROA T-statistic of X1 does not have any effect whatsoever on the values of stocks. When it comes to the most important T-statistic, the value 422 is lower than the confidence level of 95%. X2 represents the current ratio, X3 represents the total asset turnover, and X4 represents the debt to equity ratio. All three of these ratios are related to stock values. This is due to the fact that their T-statistics are increased in comparison to the primary T-statistic.

The presentation of income and other comprehensive income in the IAS Conceptual Framework

Introduction. The articulation of profit or loss and other comprehensive income increases the usefulness and faithfully represent information in financial statements. The IAS Conceptual Framework assigns primacy to the reflecting changes measurement assets and liabilities, expressed in terms of rights or requirements with respect to profit or loss. The result of this balance-sheet approach is that net income is determined as a by-product of the recognition and measurement of net assets in the balance sheet. At the same time recognized other comprehensive income. However, other comprehensive income, due to its lack of firm theoretical underpinnings, removes only the incoherencies related to capital- maintenance adjustments, is a debated question that remains unresolved what determines the relevance of the research and enables the formation of its purpose. The purpose of the article is to identify the advantages and disadvantages of applying the balance-sheet approach in determining net income or loss and to study their impact on the accounting practice of non-financial companies. Methods. The methodological basis of the study is the application of a systematic approach to improving the application of the balance-sheet model when determining net profit with the recognition of total income, comparative analysis, scientific generalization – for the study of the approaches proposed by scientists to the calculation of net profit and the use of the principle of matching between revenues and expenses, structural-logical and semantic analysis – to determine the shortcomings of the application of the balance-sheet model for non-financial companies, induction and deduction, abstract-logical – to improve the methodology of using the balance-sheet model taking into account the principles of accrual and compliance, tabular – to determine the list of transactions, as a result of which other aggregate income is recognized and establish the advantages of using the model balance. Results. The determined that the number of operations that require adjustment of assets and liabilities according to requirements IAS increases. As a consequence, profit conventional (realised) and other comprehensive income (unrealised) are recognized, which is not sufficiently represented by the Conceptual Framework. Taking the first step in the above, considered the merits of the concept of the balance-sheet approach: separate presentation of realized and unrealized income or losses (other comprehensive income), accounting for changes in the value of assets and liabilities in the longterm, control over adjustments of previously unrealized income and losses, separate presentation of revaluation results of assets and of articles that are to be reclassified, true presentation of the amount of net assets in the balance-sheet for each reporting date, separation of taxable and of nontaxable income, reduction of uncertainty. Conclusions and prospects. Installed, that the balance-sheet approach in the Framework is a good starting point for evaluating issues of recognition and measurement net assets, profit or loss. However, taking into the implications of а common practice, the of a pure balance-sheet approach cannot be used satisfactorily in non-financial companies without taking into account principles for accrual and matching in the part of the main operating activity. The informative income statement should convey a measure of profit from sales and that requires some form of matching. Mixed approach is more comprehensive, allowing for complementary roles for balance-sheet of an income statement. Common using in practice matching when determining income from operating activities and the balance-sheet method requires more detailed research in subsequent scientific work.