Forms of accounting profit used in practice

Last updated: 02.03.2016

Above in other articles were mentioned forms of profit that are somehow clearly defined. Nevertheless, the economic world is fond of other indicators and some of them can be usually found in the reporting system of nearly any company. They are often not based on any GAAP (not mentioned even in IFRS) and often do not even appear directly in the financial statements because they are used for analytical purposes.

These are the indicators of:

 

Their biggest handicap is the fact that some of them are more or less defined solely on the basis of unwritten rules and do not have any binding and direct regulation (I´m at least so far convinced about it). Therefore, universally valid methodology that determines what items shall be included is missing and it causes problems with comparability.



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