Profit after tax

One of, if not the most important, measure of a company's activity is its profitability, which is shown by the taxable profit during a given business year.

Never a company out of passion we establish: in addition to self-realization or many other goals, we also want our business profit produce. A given business year the gain generated and taxed by the company is the taxable profit.

In order to assess the situation and development of a company, it is necessary to be able to determine its effectiveness from time to time. This indicator of course, it is of interest not only to the owners and managers of the company, but also to other partners related to the business. 

Partly, therefore, about the company's operation, property, financial and income situation after the end of the business year annual report must prepare. It is part of the report profit and loss account (the balance sheet and of that supplementary annex next to). The profit and loss account is the derivation of the company's profit after tax. 

The profit and loss account and loss statement for a given period includes the company's revenues, costs and expenses for the purpose of determining the profit after tax. The purpose of profit and loss account and loss statement is to provide information and orientation about the company's income situation and its changes.

The after-tax profit can be determined after summing up several profit categories. The the result of operational (business) activity and the the result of financial procedures together is given by earnings before taxes. The latter is reduced by the tax liability to obtain the after-tax result. 

In the report, the relationship between the balance sheet and the profit and loss account and loss statement is realized through the profit after tax. In the balance sheet - an equity as an element - the post-tax result shown must always be the same as the post-tax result in the profit and loss account. 

The owners of the business are theirs of dividends they decide when accepting the report for the given business year.