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Definition And Variance Analysis Of Gains And Losses

2010/11/20 13:59:00 41

1. definition of gains and losses

Profit refers to the inflow of economic interests, which is caused by the non daily activities of an enterprise, which will lead to the increase of owner's equity and has nothing to do with the capital invested by the owner.

Loss refers to the outflow of economic interests that are not related to owners' rights and interests, and are not related to the distribution of profits to owners.

We can see that profits are very similar to the definition of income, loss and cost.

Income refers to the total inflow of economic interests which are formed in the daily activities of an enterprise, which will lead to the increase of owner's equity and nothing to do with the capital invested by the owner.

Cost refers to the total outflow of economic interests that are not related to the distribution of profits to owners in the course of daily activities.

2. conceptual difference analysis

(1) gains and losses

Emphasize

It is "non".

daily

Activities, and income and expenses are generated from daily activities.

(2) gains and losses are emphasized as the concept of "net inflow" and "net outflow". Income and expense emphasize the concept of "total" inflow "total" outflow.

In addition, the daily activities of enterprises and the non routine activities of enterprises.

activity

Due to the difference in the nature of the industry, the daily activities of different enterprises are different.

In general, the daily activities of industrial enterprises are mostly procurement, production and sales. In addition, investment is also a daily activity of enterprises.

For the non routine activities of enterprises, the disposal of fixed assets, donation payments and debt restructuring are typical.