DOI: https://doi.org/10.36719/2663-4619/124/135-141
Tamara Safarova
Baku Business University
Master’s student
https://orcid.org/0009-0007-8994-951X
tamarasafar9@gmail.com
Accounting of Financial Results: Legal Framework and
Implementation Mechanisms
Abstract
The article examines the accounting of financial results in enterprises from a multifaceted approach, analyzing in detail the essence, functions, regulatory requirements, and application mechanisms of this process. The research shows that accurate and transparent accounting of financial results is of fundamental importance for assessing the financial stability of enterprises, making management decisions, and ensuring accountability to the state. The Law “On Accounting”, the Tax Code, National Accounting Standards, and International Financial Reporting Standards provide the legal basis for recognizing financial results and reflecting them in reports. At the same time, inconsistencies in legislation, the ambiguity of certain provisions, the use of outdated accounting systems in enterprises, and the shortage of specialists are identified as the main problems negatively affecting the quality of accounting. The article also explains in detail the mechanisms for applying financial results, recognition of income and expenses, preparation of profit and loss statements, alignment with tax accounting, auditing, and the implementation of digital technologies. In conclusion, it emphasizes that for an accounting system to meet modern requirements, it is necessary to improve the regulatory framework, promote digitalization, train professional personnel, and integrate with international standards.
Keywords: financial results, income and expenses, legal framework, accounting, profit and loss