Instruction
If you know the amount of the company's gross profit (BB), the amount of material costs for production (M) and the amount of depreciation (A), calculate the value added (VA) using the formula DS = BB - (M + A).
Material production costs (M) include raw materials, materials, fuel, electricity and general production costs for the repair and maintenance of equipment.
The volume of the company's gross revenue (BB) is equal to the sum of the cost of production and the company's profit before tax (SB + P). Therefore, if you have this data, you can calculate the value added using the formula DS = (SB + P) - (M + A).
Expand the formula indicated in the second paragraph: DS \u003d (M + ZP + A + PR +% + P) - (M + A), that is, DS \u003d (ZP + P + PR + %). Thus, you can determine the value added by simply adding the accrued wages, the company's profit before tax and paid interest on the loan. If the organization bears the cost of renting the premises, do not forget to include them in the value added.
The company's profit before tax (P) is equal to the difference between the company's gross revenue and the cost of production, P = (BB - SB).
VAT is an indirect tax paid on consumer goods or services. It is levied on almost all types of goods and "falls on the shoulders" of the final consumer. At the same time, the amount of VAT that is intended to be paid to the budget is determined in the form of the difference in the amount of tax calculated with the amount of payment for the products sold by the taxpayer and the tax that was paid to suppliers for the purchased materials.
Instruction
In order to receive VAT, certain conditions must be met:
- goods must be purchased for the implementation of any production activity or, as well as other operations that are subject to VAT;
- was actually paid customs authorities for goods, the customs territory;
- the goods have been registered;
- the invoice must be correctly drawn up.
In order to receive a VAT deduction when acquiring intangible assets and fixed assets, it is necessary to accept objects for accounting.
To receive VAT deductions withheld from foreign persons, you must first pay it to the budget and comply with the condition on the use of purchased goods for production activities.
The deduction of VAT calculated from the advance payment on account of the forthcoming export of goods sold outside the territory of the Russian Federation is made only after the date of sale of these goods.
All VAT deductions that relate to goods used in production activities and the sale of these exported goods can only be made upon submission of documents confirming the export to the tax authorities.
To understand why there is no VAT, you need to figure out what this abbreviation means. Value added tax is one of the indirect taxes that is formed at different stages of production and further sale of goods and is payable to the budget. To date, there are 3 VAT rates: the standard rate of 18%, the reduced rate of 10% (on essential goods) and the rate of 0%.
Instruction
There are two types of VAT - import and domestic. Import VAT is paid at customs when goods are imported from Russia. The exception is when the product falls under the 0% rate. This happens if the goods are exported according to the procedure established by law or fall under the free customs zone regime on the territory of the participating countries. Customs Union.
The second type of tax - internal VAT - is paid when selling goods, as well as works or services on the territory of our country. However, not all legal entities must know the intricacies of calculating this tax. In order to reduce small businesses, those firms that apply the single tax on imputed income or the simplified taxation system as a taxation regime are exempt from VAT. On the one hand, this is convenient for them, but if such organizations work with companies on a general taxation regime, and VAT is allocated in a separate line in the invoice, they, unfortunately, cannot return this money from the budget. And, on the contrary, it is unprofitable for organizations working on the DOS to work with those who apply the simplified tax system, since the cost of goods is indicated without VAT, while in a similar company with a general taxation regime, the cost may be the same, but with VAT included in it. , which can be returned from the budget.
It turns out that if you do not see the VAT line on the check, then perhaps the company from which you are buying the goods is just one of the taxpayers who do not apply the general taxation regime. Otherwise, no VAT in cash receipt may serve as a basis for bringing the company to liability by the tax inspectorate.
Often, for consumers of goods, the presence or absence of allocated VAT in an invoice or receipt is not fundamental. In any case, only legal entities can return the amount of input VAT from the budget, that is, the tax is ultimately paid out of the pockets of individuals.
Proposed by the consulting company Stern-Stewart, EVA (economic value added) is an estimate of the economic profit of an organization. In essence, this is the profit received by the organization, reduced by the cost of capital.
The key question this metric helps answer is how well are we delivering value to our shareholders?
EVA - Economic Value Added
This indicator is used as a mechanism internal management operations and investment decisions of the company to meet or exceed investor expectations.
EVA is a measure of economic returns that exceed investor expectations and, barring accounting anomalies, serve to directly compare companies with the same risk profile. Examples of anomalies are spending on R&D and training; according to theory, these are investments that should be considered in this capacity.
The ability to accurately compare performance is based on the cost of capital. According to the EVA approach, organizations make a profit only when they include the cost of capital in the calculation. financial efficiency. Capital is not free. There is an opportunity cost of capital, i.e. investors can invest in different instruments(government bonds, banks, etc.). To get the actual profitability of the enterprise, it is important to subtract the cost of capital from the profit. Equity is accounted for both as a debit and as a credit. Capital is the measure of all Money invested and the company for the entire time of its existence, regardless of their source.
EVA is also actively used to set the size of incentive bonuses for managers. In our post-crisis world, it is especially interesting that the bonus structure encourages careful balancing between short-term and long-term financial results (which protects the interests of shareholders who have made long-term investments in the enterprise). Moreover, the approach to accrual of bonuses is being improved in such a way that managers share the “sorrow and joy” of investors. As said CEO one organization that has adopted an EVA-based bonus approach, “we want to make sure that the people who work (in this company) have the same goals as the people who invest in this company.”
The incentive payout model is based on the bonus pot. The bonus bank works like this: each year the bonus is determined by the EVA compared to its target value, and then this bonus is placed in the bonus bank. Typically, a third of this bonus is paid out for the current year, with the remainder being held as a premium for the risk of EVA falling in subsequent years.
It must be emphasized that employees should be rewarded for the results of the previous year, this will contribute to improvements in subsequent years. It is also important to note that bonuses are not necessarily paid when EVA is positive, as the trend may be downward. Conversely, if a division started the year with a significantly negative EVA, but showed a significant positive trend during the year, then bonuses may be paid even if the resulting EVA remains negative.
How to take measurements
Information collection method
The data is taken directly from the profit and loss account, taking into account the payment for the cost of capital.
Formula
Economic Value Added = Net Operating Profit After Tax - (Cost of Capital × Capital Employed).
EVA \u003d NOP AT - (C × K),
where NOPAT - net operating profit after taxes;
C - weighted average cost of capital (WACC), which is the average rate at which the company expects to raise funds from shareholders to finance its assets; K - used economic capital.
The cost of capital in organizations is measured using the CAPM (Capital Asset Pricing Model) method. financial assets). The nominal value of the company's capital is calculated as the sum of the basic risk-free rate of return and the β-coefficient of the asset's sensitivity to changes in market returns. Thus, the equity rate is the expected rate of return for investors who buy shares in a company. It is expressed as follows: Investors' expected return (future) = Risk-free rate of return (future) + company's β (relative measure of volatility) × Equity risk premium (history).
The equity risk premium is a return that exceeds the risk-free rate of return that investors expect from investing in risky assets. So, if the risk-free rate of return is 7%, β is 1.1, and the implied risk premium is 4%, then the company's cost of capital would be: 7% + (1.1 × 4%) = 11.4%.
Acquisition cost borrowed money is the rate of return at which the lender lends money. To determine this rate, you need to calculate the profit. This is usually done through discounted analysis. cash flow. The cost of borrowing should be calculated after taxes as follows: Cost of borrowing after taxes = Cost of borrowing before taxes x (100 - Marginal tax rate).Measurement frequency
Economic value added is calculated on a monthly basis. The weighted average cost of capital is determined on an annual basis.
The source of information is the balance sheet data.
Collecting data for calculating economic value added requires somewhat more effort than for other financial indicators. The more available the required data, the cheaper and faster the EVA calculation will be. If the data is available, then you just need to create a new formula in the system accounting. However, if important data is lost, restoring it can be very costly.
Target values
Performance in terms of economic value added can be assessed by comparison with the performance of organizations with a similar risk profile.
Example. Consider the example of a company that designs, manufactures and markets furniture for the home (example taken from James Creelman in Building and Communicated Shareholder Value, London: Business Intelligence, 2000). All figures are in thousands of US dollars.
EVA is used as a way to value an organization's investment. Consider, as an example, a packaging line that no longer meets customer requirements. The new line will help the organization generate additional revenue as well as reduce packaging costs. The net effect is estimated as an increase in after-tax profit (net income) of £2m. However, additional operating capital of £7.5m is required. Assuming a cost of capital of 11%, we get the following results:
- Increasing net income (NOPAT) - £2 million.
- The cost of additional operating capital (11% of £7.5m) is £0.8m.
- Economic value added = 2 - 0.8 = £1.2 million.
Remarks
The introduction of EVA is more about changes in corporate culture than finances. Organizations must be confident that they have created a culture in which economic efficiency much more important than just profit and loss.
Abryutina M.S.,
Ph.D.
It is known - and this is quite consistent with the social structure of the state with market economy : in the spotlight financial management the company is profit, and the focus of government authorities is the gross domestic product (GDP). GDP is understood as the sum of all produced by enterprises added value. At the same time, it seems to go without saying that the state creates conditions for the production at enterprises, if not of the maximum, then of the optimal mass arrived, and enterprises receive even more arrived the more they produce added value. Thus, it is assumed that different interests on micro- and macro leveleconomy are in harmony.
That's the theory. But let's get down to practice. It turns out that in the system of national accounting, which has been used in Russia since the beginning of the 90s, at the macro level (in the State Statistics Committee of the Russian Federation) there is no indicator " total profit enterprises", and among the indicators of accounting ( financial) reporting and forms of federal state statistical observation filled in at enterprises, there is no indicator “ added value". This is surprising, but for some reason we are not surprised - we are used to the indifference of the "tops" to the "bottoms" and the "bottoms" to the "tops".
The point is not that the interests and goals of the state coincide directly with the aspirations of financial management at the enterprise. It is necessary and sufficient that the relationship between interests micro- and macro level identified, monitored, analyzed, regulated. To perform a "pairing" micro- and macro level at least necessary end-to-end indicators of financial accounting. As such, indicators of the system of national accounts (SNA) can be used: added value, net income of the economy, disposable income. Accounting data contains all these indicators, but in an implicit, encrypted form. The task is only to extract them from the reporting of enterprises, to bring them together and generalize at the regional and federal levels.
The need for end-to-end links between the micro- and macrolevels of the economy is sometimes remembered, but the methods that are proposed for their implementation do not stand up to scrutiny. We will name three of them and offer a practically acceptable fourth method.
Method one. It consists in raising accounting to the macro level. Since 1995, all enterprises have submitted balance sheets and other forms of financial statements to the State Statistics Committee of the Russian Federation. At the same time, it became fashionable to call the national accounting system macro-level accounting. The reason for this was the formal similarity of terminology: in the SNA there are accounts production, income generation, capital formation, etc. and in accounting there is Chart of accounts. But the accounts are different. Economic and financial accounts function in the SNA, built on the equality of resources and their total use, and in accounting, with the help of accounts, the principle of double entry of each business transaction is implemented: on the debit of one account and simultaneously on the credit of another (in the same amount).
Debit and credit are not just "income" and "expenditure", as can often be heard and even read in the economic literature. The concepts of "debit" and "credit" exist only in a single system with the concepts of "assets" and "liabilities" of the balance sheet. For some accounting accounts, a debit is an income, and a credit is an expense; for others, on the contrary, a debit is an expense, and a credit is an income. Double entry causes four types of accounting entries.
In the system of national accounts, as in any economic balance (for example, the fuel and energy balance, in the state budget), the records are of the same type and transparent: income generates resources, and expenditure shows the direction of their use. The double entry method is not used. What non-specialists take for a double entry in national accounts is nothing more than the observance of the principle of conservation of matter according to Lomonosov: what is taken away in one place is added in another place.
In accounting, this principle is also observed, but it can receive double double expression: and you have to subtract twice, and add - twice. If in national accounting, to reflect the operation of paying interest to the bank by the enterprise on the loan received, it is enough to write: (-), (+) - minus for the enterprise, plus for the bank, then in accounting you should write: (-), (-), ( +), (+) - two minuses for the enterprise and two pluses for the bank.
In addition, plus and minus signs are not put down in accounting: pluses and minuses are expressed through debits and credits of active and passive accounts. When paying interest to the bank, the accountant of the enterprise makes an entry on the debit of account 66 “Settlements on short-term loans and loans” and, in the same amount, on the credit of account 51 “Settlement account” (both entries mean a decrease - minus), and the accountant the lender bank receives interest received on the debit of its current account and on the credit of its liabilities (both entries mean an increase for the bank - plus resources).
Reading accounting documents by a financial manager involves at least a mental transition from accounting turnovers and account balances to single-digit values of property and income. The manager is interested in answers to simple questions: “Has property increased or decreased?”, “Was income received and in what amount?”, “How was it spent?”.
Our professional accountants, as a rule, are not interested in the requests of managers (“the less they understand, the better ...”), and specialists in the field of economic statistics and macroeconomic analysis, with rare exceptions, do not know the basics of accounting and deny with both hands "debit" and "credit". Therefore, the balance sheets and other forms of accounting reports received and stored since 1995 by statistical agencies remain unused for their intended purpose. The maximum that the Goskomstat of the Russian Federation managed to do was to obtain some summary data from the forms of financial statements. But to compare them with macro-level data, which are calculated according to indirect indicators, to enter them into a single system of national accounting, to evaluate the activities of enterprises - these tasks were not fulfilled. First, it is necessary to shift the financial statements into a simpler and generally accessible economic language. Raising accounting to the macro level is nothing more than a utopia.
Method two. For the interconnection of the micro- and macroeconomic levels, it is proposed (most often in dissertations) to introduce indicators of national accounting into the Plan of Accounts at the enterprise, primarily value added. (After this step, you will also need to enter the value added value in accordance with the accounting method, but there is no value added in national accounting ...)
The introduction of SNA indicators into the Chart of Accounts, if it were carried out, would destroy accounting, and macroeconomic analysis would still be left without information.
Accounting is necessary in the enterprise. It is a unique mechanism for monitoring the correctness of records. There is no such control in the SNA - but it is not needed at the macro level.
Material values and money should be kept under lock and key and recorded using double entry where they are, i.e. in enterprises, in banks. At the macro level, they deal with material and cost abstract streams. Internal control in the SNA is that GDP is considered by both production method and distribution method, as well as by final use. And all three calculations must be adequate to each other.
Method three. End-to-end indicators are proposed to be formed on the basis of tax accounting. Tax accounting has already invaded enterprises and deforms accounting, crowding out financial analysis. Thus, there is a risk of losing the basis for the analysis of financial economic activity generally.
No matter how important the state budget and its revenue part, formed on the basis of tax revenues, this is only a part of financial flows in the national economy. By neglecting financial and economic accounting and analysis in general, the state may lose a living spring of financial revenues to the federal level.
Fourth way establishing the relationship between the micro and macro levels, proposed by the author, consists in creating at enterprises - on the basis of statistical observation - an economic accounting system that includes a financial subsystem that will solve two problems at once:
- provide input data for macroeconomic accounting and analysis,
those. national accounting; - serve as a tool for in-depth analysis of the financial and economic activities of enterprises.
Just as verbal texts are translated from one language to another using bilingual dictionaries, a translator is needed to translate from an accounting language into a financial and economic one.
To go from balance National economy to the SNA in the 90s in the State Statistics Committee of the Russian Federation, with the help of statisticians, the so-called "transitional keys" were developed. Similarly, for the transition from accounting to economics, a transitional tool is needed, a kind of bridge.
Value added is the indicator on which the national accounting system is based and which is implicitly hidden in the accounts. It is high time to make it the object of federal state statistical observation at enterprises. After all, enterprises pay value added tax - and how to calculate the added value, the Ministry of Finance of the Russian Federation “forgot” to inform enterprises. The VAT rate is tied to sales revenue, not value added.
Output is defined in the SNA as the sum of sold (sold) products and the increase in work in progress, as well as stocks of finished products and shipped products. (This is the first "transitional key".) Shipped, but not yet paid for products, from an economic point of view, are the same stocks of finished products. Sold products are determined by revenue, which is presented in the financial statements of enterprises unambiguously (Form No. 2 "Profit and Loss Statement"). The increase in work in progress and other elements of output is also contained in the financial statements and forms of the federal state statistical observation (the latter - form 5-z).
Intermediate consumption is the part of the total cost, including production costs, administrative and selling costs, which are presented by cost elements. This includes such elements as the cost of raw materials, materials, fuel, energy, components, as well as the cost of paying for production services, i.e. all current costs associated with the release of products (works, services) at this enterprise and are the subject of output of other enterprises. What is spent, but not received from outside, is not intermediate consumption.
The methodology for calculating value added is described in detail in the Methodological Regulations of the Goskomstat of the Russian Federation and in multi-volume works published jointly by: Eurostat, the International Monetary Fund, the Organization for Economic Cooperation and Development in Europe, the United Nations and the World Bank (1993 version). There is no need to rehash this entire methodology in a journal article. It is important that it is developed, internationally recognized and translated into Russian.
These publications are addressed not to employees of enterprises, but to macro level statisticians. Meanwhile, every leader, every Financial Manager at the micro level would like to calculate the added value produced by his enterprise. And it's possible. The author of the article was convinced of this by repeatedly calculating the added value and its use on the materials of specific enterprises1.
The calculation of value added would be quite simple, if not for four complex methodological points:
- costs at enterprises are determined and grouped by cost elements relative to products sold, and not relative to the entire output;
- depreciation at enterprises is taken into account as part of costs, and in the SNA - as part of value added, i.e. as part of income;
- VAT in the reporting of the enterprise is artificially separated from revenue and costs and, as it were, does not participate in the economic turnover (this is the installation given from above by the Ministry of Finance of the Russian Federation and the State Statistics Committee of the Russian Federation). In value added calculations, VAT must be brought back into circulation;
- a change in work in progress does not have an internal structure in the reporting. This indecomposable indicator cannot be included in the calculation of value added without making some degree of error. It is also impossible to discount this indicator.
Consider a number of examples of value added calculation.
Example 1 (numbers are conditional).
The company sold products for a month for 160 thousand rubles. (accounting for sales at the time of shipment). As part of revenue, VAT was charged at a rate of 20% to the value of products without VAT, or 16.67% as part of revenue:
160 x 16.67 / 100 = 26.67 thousand rubles
The cost of production without VAT: 160 - 26.67 \u003d 133.33 thousand rubles.
Raw materials, materials and other acquired valuables were consumed for the manufacture of sold products (intermediate consumption) in the amount of 96 thousand rubles, at market prices, which, excluding VAT, is
96 - 96 x 16.67 / 100 = 96 - 16 = 80 thousand rubles.
Calculation of value added according to formula (1) can be made both with VAT and without VAT. When presenting the result of the calculation, it is necessary to make a reservation regarding the inclusion of VAT.
In this example, we assume that the increase in work in progress and other elements of output is zero. Therefore, output equals sales revenue.
Value added (VA) with VAT can be calculated in two ways: 1) directly and 2) in stages.
Method 1. DS \u003d 160 - 96 \u003d 64 thousand rubles.
Method 2. a) DS without VAT = 133.33 - 80 = 53.33 thousand rubles;
b) VAT payable, according to the tax return, including VAT on acquired and used material assets:
26.67 - 16 = 10.67 thousand rubles;
c) value added, including VAT:
53.33 + 10.67 = 64 thousand rubles;
d) share of VAT in DS:
10.67 / 64 x 100 = 16.67%.
Thus, the calculation of value added, including VAT, is the same for the first and second methods of calculation. A practical conclusion is important: when calculating value added, it is necessary to observe the principle of equal valuation of both output and intermediate consumption.
The following conclusion: the share of VAT (payable to the budget) in the value added coincides with the share of the initially assessed tax in the cost of production due to the fact that the tax contained in the value of the acquired values is deducted. It follows that in the absence of an increase in work in progress and other elements of output, except for sales proceeds, the amount of value added produced can be established using a VAT tax return:
10.67 / 16.67 x 100 = 64 thousand rubles
If output includes other elements than sold products, then the calculation of value added becomes more complicated.
Example 2 (numbers are conditional).
The enterprise produced products worth 205 thousand rubles, including: sales revenue amounted to 180 thousand rubles at market prices, and the increase in work in progress (WIP), estimated at costs, was 25 thousand rubles.
Intermediate consumption for the entire output is set at 66 thousand rubles, at market prices, including 60 thousand rubles for sold products. and for the increase in work in progress - 6 thousand rubles.
Step by step calculation of added value:
1.) Production output without VAT, including the increase in WIP:
(180 - 180 x 16.67 / 100) + 25 \u003d (180 - 30) + 25 \u003d 175 thousand rubles.
2.) Intermediate consumption without VAT:
66 - 66 x 16.67 / 100 \u003d 66 - 11 \u003d 55 thousand rubles.
3.) Value added without VAT:
175 - 55 \u003d 120 thousand rubles.
4.) VAT payable according to the tax return, including VAT on acquired valuables spent on products sold:
30 - 10 \u003d 20 thousand rubles.
5.) VAT for inclusion in GDP (for submission of information to the macro level):
30 - 10 - 1 \u003d 19 thousand rubles.
6.) Value added including VAT for GDP:
120 + 19 = 139 thousand rubles
7.) The share of VAT in DS in national accounting:
19 / 139 x 100 = 13.67%.
8.) The share of VAT in the sold volume of DS:
20 / 120 x 100 = 16.67%.
From example 2 it follows that in the presence of an increase (decrease) in work in progress, it is impossible to determine the amount of value added by accruing VAT payable.
It also seems to follow from Example 2 that VAT values at the micro and macro levels in the same situation differ from each other, and therefore the value and structure of GDP differ (may differ). Let's consider this question in more detail.
The difference in the amount of VAT payable to the budget according to the tax declaration in the reporting period and characterizing the created GDP (20 and 19 thousand rubles, respectively), is explained by the time lag between tax accounting and national accounting.
National Accounting is already taking to offset the VAT, which is contained in the intermediate consumption, which ensured the growth of work in progress. Tax accounting is abstracted from work in progress.
Creditable VAT for GDP has not yet been paid. It is still on account 19, economically identical accounts receivable(state - enterprise). What is the value added used in example 2 for inclusion in GDP? Let's track separately the realized and unrealized parts of the release.
The realized part of the issue amounted to 180 thousand rubles. From the proceeds, all intermediate consumption should be paid, i.e. spend 66 thousand rubles, as well as pay the VAT accrued by the tax office - 20 thousand rubles, a total of 86 thousand rubles. Thus, 94 thousand rubles remain from the proceeds. This is the monetary value added. The total value added - after VAT settlements with the budget - should remain at the enterprise (point 3) 120 thousand rubles. This means that the difference (120 - 94 = 26) must be non-monetary and must be available. So it is: the enterprise has an increase in work in progress (25 thousand rubles) and on account 19 there is an uncredited amount (potential money) in the amount of 1 thousand rubles.
Thus, the elementary simple formula (1), according to which the added value is the difference between two values, in practice becomes overgrown with rather puzzling specifics.
In order not to make mistakes in the calculations, it is necessary to remember fundamental principle national accounting: all monetary indicators in it are determined not by cash execution(or actual transfers), but according to accrual of income payable.
In methodological terms, it is important to take into account that the initial information at the enterprise covers both accruals and cash execution. From the micro level, the state budget takes only cash execution to the macro level, and national accounting - only accruals.
Methodology financial authorities It is clear: there should be real money in the budget. But why does the SNA need an increase in work in progress? This, as we saw in the calculations in example 2, is the non-mobile part of the added value, one might say, burdening financial position and enterprises and sectors (or industries) of the economy.
Here it is necessary to take the position of macroeconomic analysis: there must be a balance between output and costs in the national economy. The intersectoral balance (V. Leontiev's model) is called “input-output”. What is taken into account in the output must then find its place either in costs or in final use (personal consumption, capital formation). Work in progress costs are real, they take into account only what was produced at other enterprises. And if it was released, then it should be used.
This is the fundamental principle of economic balances. On the other hand, if something is paid for and used, then it should have been released. Here we can draw an analogy with the method of zemstvo statisticians, which they used in collecting information about peasant farms. When asked about their income, the peasants answered that they had no income. But they were happy to list their expenses. Zemstvo statisticians calculated the incomes of the peasants fairly accurately.
With the help of national accounting categories, each enterprise can and should be considered as a micronational economy, i.e. as an institutional unit, not just as a taxpayer. The enterprise deserves to have a full-fledged economic, and not just a balance sheet. (Among the zemstvo statisticians, each peasant farm had an economic and financial balance sheet.) On the way to economic accounting and analysis, it is reasonable to learn how to calculate value added directly at the enterprise.
We continue to consider methodological issues. Now the next step is to overcome the difficulties arising from the discrepancy between the data available on the accounting accounts and presented in the forms of financial statements. The latter are tailored to the interests of taxation rather than financial analysis. (But tax service is still dissatisfied and continues to attack the reporting of enterprises.) So far, all the necessary information for financial and economic analysis and national accounting is available in the general ledger. But in general, since there are two arrays of initial information - accounts and reporting forms, - there should be two methods for calculating value added: according to accounting accounts and according to reporting forms.
Example 3 (numbers are conditional).
We present the initial data in tabular form (Tables 1 and 3).
Table 1 shows the input and output data recorded in the accounts. In the turnover on the debit of account 20 "Main production" for the reporting period, all costs are collected: both for sold products and for the increase in work in progress. Write-off of all or part of the costs from account 20 to accounts: 43 " Finished products”, 45 “Goods shipped”, 90 “Sales” allows you to determine the change in work in progress, which is equal to the change in balances on this account. Thus, in terms of the increase in work in progress, both costs and output are numerically equal. We will not dwell on the accounting of costs and the formation of other elements of output on accounts 29 “Service industries and farms”, 44 “Sales costs” and others, since methodologically this accounting is similar to entries on account 20. Table 1 contains the costs and output from all accounts.
Table 1
Initial data for calculating value added for the reporting period
(example 3, numbers are conditional)
Intermediate consumption, extracted from table 1, includes material costs and service charges contained in the cost price. (A number of services are paid for by profits, and their cost is not included in the cost.) Thus, intermediate consumption in example 3 is
12,000 + 400 = 12,400 thousand rubles
Let's define the value added by the classical production method (Table 2).
table 2
Calculation of value added for the reporting period
(example 3, numbers are conditional)
Let's approach the definition of value added in example 3 from the distribution side. Row costs in accounting, enterprises become in national accounting elements of the produced income- added value. These are: wages, deductions for social needs, taxes included in the cost, interest on a loan, depreciation.
Together with the profit of the enterprise, the generated income (value added) will be (excluding VAT)
3000 + 1140 + 460 + 500 + 2500 = 7600 thousand rubles.
It is this value that was obtained by the classical production method (Table 2).
The initial information presented in the reporting forms for the same enterprise and for the same reporting period will have a different form (Table 3).
In the profit and loss statement (Form No. 2 of financial statements) in three lines: “cost”, “management” and “commercial” expenses - in total - the costs written off on the loan from account 20 (and other accounts that take into account costs) will be shown , which are less than the accrued costs for the calendar year on the debit of these accounts by the amount of costs that ensured the increase in work in progress:
17,500 - 2000 = 15,500 thousand rubles
If you use the official data of form No. 2 and the breakdown of costs in form No. 5, as well as the breakdown of other costs in the form of 5-z federal statistical observation (see Table 3), then the value added will be
Table 3
Indicators of output, costs and income for the reporting period, extracted from reporting forms (example 3, conditional figures)
| The name of indicators | Value of indicators, thousand rubles |
| I. Product output (excluding VAT) including Sales revenue Growth in Work in Progress and Other Elements of Output II. Costs of sold (sold) products III. Incremental costs of work in progress IV. Revenue from sales | 20 000 28 |
Comparing this value with the value added calculated according to the accrued costs for the entire output (Table 2), we see that the value added is now overestimated (9020 > 7600). The amount of overstatement (1,420 thousand rubles) corresponds to the share of intermediate consumption in the growth of work in progress (71%).
Based on the data in Table 3, we determine the value added by the distribution method:
2659 + 1010 + 408 + 443 + 2500 = 7020 thousand rubles.
Compared to the correct calculation (according to Table 2), the value added is now underestimated by 580 thousand rubles. . The amount of underestimation corresponds to the share of value added in the growth of work in progress and other elements of output (29%).
Since we have two rows of initial data “at hand”, we can judge the magnitude of the error. But if only data from reporting forms and statistical observation are available, then the magnitude of the error remains unknown.
The main thing is that the adequacy of the calculation of value added by production and distribution methods has disappeared (9020 No. 7020).
A choice has to be made: to attribute the entire increase in work in progress to intermediate consumption (together with the elements of value added contained in this increase) or to attribute the entire increase to value added (together with elements of intermediate consumption contained in the same increase). In both cases, the adequacy of the calculation of value added by production and distribution methods will be achieved. Indeed, by increasing intermediate consumption by 2,000 thousand rubles, we obtain the same underestimated value added by the production method:
20,000 - (10,980 + 2000) = 7020 thousand rubles.
And adding 2000 thousand rubles to the elements of added value, we get
7020 + 2000 = 9020 thousand rubles
But now the same value is obtained by the production method:
20,000 - 10,980 = 9020 thousand rubles
It is preferable to include the entire increase in work in progress (and other elements of output, except sales proceeds) in value added as an independent element, leaving intermediate consumption at the level as it is presented in the reporting forms. (In example 3, the value added is assumed to be 9,020 thousand rubles, and intermediate consumption is 10,980 thousand rubles.) Information sources are forced to make such a choice. If the calculation is made according to the data of the reporting forms, then, as a rule, the distribution method is selected. In addition, in terms of material composition, the increase in work in progress, through internal exchange transactions, will always enter entirely and completely into the composition of income, tying it up, depriving it of mobility (as was shown in example 2). It is better to take into account this unfavorable moment "with enumeration" than to overlook it at all.
It is noteworthy that the profit of the enterprise from sales in any calculation options of example 3 remains stable (2500 thousand rubles), since it is determined regardless of VAT and changes in work in progress, and also does not include depreciation. But for macroeconomic analysis, another profit is needed - the net profit of the economy.
In order to calculate the net profit of the economy created by the enterprise, it is necessary first to calculate the value added by both the production and distribution methods, and in addition, to have data on the use of the profit of the enterprise of the reporting year, which differs from the profit from sales. The meaning of the indicator net profit economy - determination of the potential for capital formation and payment of dividends on shares. In this case, the created added value is divided into three parts: the share of employees, the share of the state and the share of the enterprise-economic entity. To carry out such a distribution is interesting for every manager in the enterprise. This is the answer to the question - for whom does the company work.
In the further distribution, the structure of this net profit may change, but the initial positions determine a lot. Our example 3 is conditional. But each financial director can make calculations on the real data of his enterprise.
First of all, a distinction must be made between labor costs in accounting and labor costs in the system of national accounts. This last indicator includes direct wages, social contributions, and social payments included in other costs as part of the cost, and cash payments and incentives from profits not related to the performance of work (from section 7 of form No. 5 of financial statements ). Dividends and other income of employees on contributions to the property of the organization are not included in the wages of employees. In our example 3, according to the reporting data (see Table 3), the payment for hired labor, respectively, amounted to: 2659 + 1010 + 28 + 33 = 3730 thousand rubles. The share of the state at the stage of primary distribution of all added value is determined in the amount of taxes accrued on production. The main one is value added tax. The remaining taxes on production are included in the cost price, in other costs. These are taxes on land, for water intake, for the use of subsoil, for the use highways etc.
The remainder, after subtracting wages, taxes on production and depreciation from the value added, is the net profit of the economy. Let us show how the net profit of the economy was formed in example 3 (Table 4).
Table 4
Formation of the net profit of the economy for the reporting period
(example 3, numbers are conditional)
The net profit of the economy, as well as the added value, can and should be determined by the distribution method. It will include the following elements: 1) profit from sales, minus payments and incentives not related to the performance of work; 2) elements of net profit included in the cost (mandatory insurance payments property insurance; rent payable; contributions to off-budget funds, except for social ones; 3) increase (decrease) in work in progress.
In example 3, the sum of the three listed elements will be (see data in Table 3)
(2500 - 33) + (408 - 28 - 90) + 2000 = 4757 thousand rubles.
Summing up the consideration of methods for calculating the value added and net profit of the economy, we can quite reasonably make next recommendation: before proceeding with the calculations, it is necessary to fully disclose the cost structure of output, present it in elements that do not intersect with each other, and then regroup these elements, avoiding repeated counting and without losing elements. The probability of repeated billing is due to the fact that the same areas of costs are carried out both at the expense of cost and at the expense of profit - for example, payment of interest on loans, property insurance, payment for services of healthcare institutions and a number of other costs. Each type of such costs should be divided, clearly indicating which part is financed from which source.
The role of value added and net income of the economy in financial analysis would not have been fully elucidated had it not been for the journey from these indicators to the generation of disposable income and equity growth. This whole path must fit into the system, "invest" in the indicators of the balance sheet, which also needs to be structured, like output. Calculations of this kind are justified, since income is associated with the movement of property, acts as a source of changes in property. In Russian financial statements, income and property are presented as existing separately from each other, although objectively they are inseparably linked.
The movement of income and property is complicated by the fact that each enterprise receives (can receive) income not only from production - in the form of value added and net profit of the economy, but also from providing its economic assets to other economic entities, receiving a part of the added value for this created by these other entities. The concept arises income received. The national accounting system dispenses with this concept, as it prefers to show net income. At the level of microeconomics, it is important to cover the entire turnover of income, since it is here that the initial information is formed. Balancing is the next step in the calculations. Without full turnover, you can not get a balance. Having received it, but without showing the turnover, no analysis can be made: the same balance of primary distribution of income or from property transactions can be obtained both with large receipts and payments, and with the almost complete absence of both.
In addition to income-expenses associated with the provision of economic assets to other economic entities and with the similar use of other people's assets, the generated income is subject to redistribution under the influence of current transfers: the company pays, after taxes on production, a larger number of taxes called taxes on property and income, and also pays and receives fines, penalties, exchange rate differences. As a result, it forms disposable income of the enterprise.
The amount of disposable income can be determined directly from the balance sheet, structured in accordance with the principles of national accounting. All capital at the disposal of the enterprise must be divided without a trace into only two positions: equity capital and borrowed capital. The change in equity (net of the result of the revaluation of property, but with the addition of depreciation for the reporting period) indicates the amount of disposable income. If all the vicissitudes of the movement of income were reflected in the analytical calculations correctly, then the following equality should take place.
This equation is in full accordance with the relationship of accounts in national accounting (production accounts, accounts of primary distribution of income, accounts of secondary distribution and accounts of capital formation), but is presented in a form that is convenient for perception, comprehension economic processes, causing a change in the value of equity capital.
Let us introduce some additional data into the calculations according to example 3, allowing us to connect the analysis of income with the analysis of own property (Table 5).
Table 5
Initial data for calculating disposable income for the reporting period (example 3, conditional figures)
Let us determine the amount of accrued income payable for all reasons (thousand rubles) - according to tables 3 and 5:
Labor costs - 2659
Deductions for social needs - 1010
Accrued taxes, interest on a loan and others as part of other costs - 408
Accrued to payments for property (dividends on shares, etc.) - 1600
Accrued dividends to its employees - 300
Accrued taxes, etc. on secondary distribution - 1000
Accrued VAT to be included in the budget - 1120
Accrued payments and incentives not related to the performance of work - 33
Total accrued for payments for all reasons - 8130
Let's calculate the increase in equity in accordance with equation (2).
Capital gain = 9697 + 1500 + 80 + 450 - 8130 = 3597 thousand rubles.
The result obtained in this way must be reconciled with the increase in equity capital according to the structured balance sheet. (This operation is omitted here, since the balance sheet is not given. But the match is assumed to be complete.)
We define disposable income in two ways: 1) from the increase in equity on the balance sheet, minus the result of indexation and with the addition of depreciation; 2) from the profit of the enterprise, more precisely from the balance of the profit of the reporting period.
Disposable income according to the first method: 3597 - 450 + 443 = 3590 thousand rubles.
We will calculate the disposable income according to the second method (thousand rubles) in stages - using the data from tables 3, 4, 5:
Balance of profit for the reporting year = 2500 + (1500 - 1600) - 300 + (80 - 1000) - 33 = 1147
Depreciation - 443
Increase in work in progress - 2000
Total disposable income under the second method - 3590
The coincidence of the amount of disposable income calculated in two ways: first, based on the embodiment of this income in property, and then - based on the entire chain of education and income distribution - confirms the correctness of the methodological recommendations.
Disposable income is an important analytical indicator. It must be a positive value. But it can also turn out to be a negative value, which will mean eating up equity capital. To avoid this phenomenon, income should be managed from the moment of their formation. In order for the enterprise to have a profit, it is necessary to produce the added value, of which it is a part. But in order for the profit to have a balance for increasing equity, it is necessary to maintain a balance of accruals of income for payments and their sources at the stages of primary and secondary distribution.
The text of the document with amendments and additions as of November 2013On the basis of subparagraph 6.1 of paragraph 6 of the Regulations on the Ministry of Economy of the Republic of Belarus, approved by the Resolution of the Council of Ministers of the Republic of Belarus dated July 29, 2006 N 967 "Certain Issues of the Ministry of Economy of the Republic of Belarus", subparagraph 7.1 of paragraph 7 of the Regulations on the Ministry of Labor and social protection Republic of Belarus, approved by the Resolution of the Council of Ministers of the Republic of Belarus dated October 31, 2001 N 1589 "Issues of the Ministry of Labor and Social Protection", the Ministry of Economy of the Republic of Belarus and the Ministry of Labor and Social Protection of the Republic of Belarus DECIDE:
2. This resolution comes into force after its signing.
Minister of Economy of the Republic of Belarus N.G. Snopkov
Minister of Labor and Social Protection
Republic of Belarus M.A. Shchetkina
APPROVED Decree of the Ministry of Economy of the Republic of Belarus and the Ministry of Labor and Social Protection of the Republic of Belarus on May 31, 2012 N 48/71
CHAPTER 1 GENERAL PROVISIONS
1. Guidelines for calculating value added and value added per person average employee(labor productivity in value added) at the organization level (hereinafter referred to as the Guidelines) are intended to guide the work of the republican bodies government controlled and other government organizations subordinate to the Government of the Republic of Belarus, regional executive committees and the Minsk City Executive Committee.
2. The Guidelines apply to organizations that are subordinate (run) to the republican government bodies and other state organizations subordinate to the Government of the Republic of Belarus, regional executive committees and the Minsk City Executive Committee, as well as to business companies whose shares (stakes in authorized funds) are state-owned.
CHAPTER 2 CALCULATION OF VALUE ADDED AT THE ORGANIZATION LEVEL
3. Value added at the level of an organization is that part of the value of products (works, services) that is created in a given organization. Added value is the source economic growth and the formation of income for the owners of the organization, employees, the state.
4. Economical effect maximization of the added value of the organization is expressed in the realization of the interests of:
owners - in providing the opportunity to solve managerial problems of the organization's development, including the supply, sale of manufactured products (works, services) and the receipt of dividends, interest, income;
investors - in the payback of invested capital and its profitability over time;
workers - in the opportunity to receive decent wages;
of the state - in the fulfillment by organizations of obligations to pay taxes to the republican and local budgets, which allows the latter to solve the social and environmental problems of society.
The added value, in contrast to the profit indicator, coordinates the interests of not only corporate, but also of a state nature, since it takes into account the requirements of the legislation to ensure social and environmental guarantees.
5. The value added by the organization is calculated for all types of economic activity carried out as follows:
the volume of production of products (works, services) in selling prices, net of accrued taxes and fees from the proceeds minus material costs (excluding payment for Natural resources) and other costs, consisting of rent, hospitality and services of other organizations.
DS \u003d V - MZ - PrZ,
where DS is the value added by the organization;
V - the volume of production (works, services) in selling prices, net of accrued taxes and fees from the proceeds;
MZ - material costs minus payments for natural resources;
RZ - other costs, consisting of rent, entertainment expenses and services of other organizations.
6. The formation of indicators of the volume of production of products (works, services) and the costs of their production is carried out on the basis of synthetic and analytical accounting data in accordance with regulatory legal acts on accounting.
CHAPTER 3 CALCULATION AND ANALYSIS OF LABOR PRODUCTIVITY AT THE ORGANIZATION LEVEL
7. Labor productivity at the level of the organization is calculated in actual prices as the ratio of value added calculated in accordance with paragraph 5 of these methodological recommendations for the reporting period, average headcount employees of the organization during the same period.
8. The growth rate of labor productivity at the organization level is calculated in actual prices as the ratio of labor productivity at the organization level in actual prices for the reporting period to labor productivity at the organization level in actual prices for the corresponding period of the previous year.
9. The ratio of the dynamics of labor productivity at the level of the organization and the wages of employees of the organization is calculated as the ratio of the growth rates of labor productivity at the level of the organization in actual prices and the nominal accrued average monthly wage.
If the ratio of the growth rate of labor productivity at the level of the organization in actual prices and the nominal accrued average monthly wage is greater than one, consider that there is a faster growth in labor productivity.
10. The calculation of labor productivity and its analysis with the linkage of the wages of workers to agricultural organizations, taking into account the specifics of agricultural production, it is advisable to carry out at the end of the year.
In corporate finance economic value added (English Economic Value Added, EVA) is one of the financial indicators that reflects the value created over a certain period, in excess of the required rate of return of investors who provided capital, both equity and borrowed. If the value of this indicator is positive, it means that the managers have increased the value of the corporation. In turn, a negative value indicates that the value of capital received from investors exceeded the profit received for the period, leading to a decrease in the value of the corporation.
It should be noted that the concept of economic value added is similar to the concept of net present value ( English Net Present Value, NPV). Therefore, both of these indicators can be used to evaluate the effectiveness of projects.
Formula
AT general view The formula for calculating the economic value added can be represented as follows.
EVA = NOPAT - OC*WACC = EBIT*(1-T) - OC*WACC
NOPAT - net operating profit after tax;
OC is the amount of operating capital;
WACC is the weighted average cost of capital ( English Weighted Average Cost of Capital);
EBIT is earnings before interest and tax ( English Earnings Before Interest & Tax);
T is the income tax rate.
From the point of view of return on invested capital, the formula for calculating economic value added can be written as:
EVA = OC * (ROIC - WACC)
ROIC - return on invested capital.
Calculation example
The main financial performance indicators of the BFG Corporation in the reporting period are as follows:
- profit before interest and taxes 5450 thousand USD;
- own capital 18450 thousand c.u. at a cost of 15.9%;
- borrowed capital 7320 thousand c.u. at a pre-tax value of 11.75%;
- income tax rate of 30%.
The amount of net operating profit after tax in the reporting period amounted to 3815 thousand USD.
NOPAT \u003d EBIT * (1-T) \u003d 5450 * (1-0.3) \u003d 3815 thousand USD
The amount of operating capital used by the corporation in the reporting period amounted to 25,770 thousand USD. (18450+7320).
WACC = k e *y e + k d *(1-T)*y d
k e is the cost of equity;
y e – equity share;
k d - before the tax cost of borrowed capital;
y d is the share of borrowed capital.
The BFG Corporation's share of equity is 0.72 (18450/25770), and the share of borrowed capital is 0.28 (7320/25770).
Thus, the weighted average cost of capital of the corporation is 13.168%.
WACC = 15.09*0.72+11.75*(1-0.3)*0.28 = 13.168%
EVA \u003d 3815-25770 * 0.13168 \u003d 421.6 thousand c.u.
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