Numerical example of the entrepreneur's contribution Accounting profit
$57,000 Foregone interest 1,000 Foregone rent 5,000 Foregone wages 22,000 Foregone entrepreneurial income 5,000 Total implicit costs $33,000 Economic profit $24,000
As this does not require changes to the accounting profit
with respect to IFRS 16, the taxable income/loss should be the same as the accounting profit
Now the condition of distributing 40% of after-tax profits is being reduced to 20% and the applicable tax rate on accounting profit
in case of failure to distribute such dividend is being reduced from 7.5% to 5%.
The objective of the adjustments is to minimize the impact of earnings management, and converting the accounting profit
into economic profit.
This may be explained by the way in which accounting profit
is derived by merely deducting interest charges in contrast to economic profit which subtracts the cost of all capital employed (Ooi & Liow, 2002).
In year N, the interest expense was not deductible, it was gathered in accounting profit
to determine taxable income and the entity paid more with 16 m.u in taxes.
The decrease was due to an extraordinary accounting profit
of THB 450 million in 2014 from a change in status of investments in subsidiaries, to jointly controlled entities, offsetting a loss on impairment for solar thermal of THB 250 million.
Angelov, as cited by the Bulgarian National Radio, made clear that the accounting profit
of the Kozloduy NPP for the first six months of stood at BGN 116 000 000.
"Not only did it deliver an accounting profit
for the half year, but improved loss ratio projections show that the operation was profitable in 2012 on a written basis.
To study accounting profit
in most of the researches done in accounting, it is categorized as cash and accrual, and the effect of each on the qualitative characteristics of profit, stock return, and ...
By doing so, it can attain short term accounting profit
at the expense of medium to long term economic loss.
Despite the drop of accounting profit
, considering correction of 2011 profit by the results of selling a share in Yamal LNG project, the corrected profit, related to stockholders of NOVATEK, grew 22.6% in 2012.
Easton, Harris, and Ohlson (1992) investigated the relationship between accounting profit
and stock return.
The bank lost HUF33.6bn from the scheme, of which HUF31.6bn was included in its 2011 accounting profit