Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The Critical Analysis of Profit for its Allocation Decision-Making

The Critical Analysis of Profit for its Allocation Decision-Making AbstractThe decrease of the business property can cause a reduction in the production ability of the enterprise to the extent causing an involuntary closing of business activities. It is usually caused not only by the reported loss, but also by the greater distribution of profits, as is the amount of the real level of the enterprise's distributable profit. A thorough analysis of the reported accounting profit described in this paper should be the starting point for the allocation of profit. It is important to be able to identify and assign a portion of the accounting profit, corresponding to the non-realised profit and fictitious profit, where eventual release outside the enterprise threatens the future performance of the enterprise. These portions of the reported profit do not correspond to the actually made, realised and real production, which is a necessary condition to achieve a real profit to possible safety division to investors. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Scientific Annals of Economics and Business de Gruyter

The Critical Analysis of Profit for its Allocation Decision-Making

Loading next page...
 
/lp/de-gruyter/the-critical-analysis-of-profit-for-its-allocation-decision-making-0gpOkZ53tw
Publisher
de Gruyter
Copyright
© 2017 Renáta Pakšiová, published by De Gruyter Open
eISSN
2501-3165
DOI
10.1515/saeb-2017-0039
Publisher site
See Article on Publisher Site

Abstract

AbstractThe decrease of the business property can cause a reduction in the production ability of the enterprise to the extent causing an involuntary closing of business activities. It is usually caused not only by the reported loss, but also by the greater distribution of profits, as is the amount of the real level of the enterprise's distributable profit. A thorough analysis of the reported accounting profit described in this paper should be the starting point for the allocation of profit. It is important to be able to identify and assign a portion of the accounting profit, corresponding to the non-realised profit and fictitious profit, where eventual release outside the enterprise threatens the future performance of the enterprise. These portions of the reported profit do not correspond to the actually made, realised and real production, which is a necessary condition to achieve a real profit to possible safety division to investors.

Journal

Scientific Annals of Economics and Businessde Gruyter

Published: Dec 1, 2017

References