Treatment of profit from the perspective of balance sheet accounting concepts

The article considers the treatment of profit from the perspective of basic balance sheet accounting concepts. We have discussed the features and limitations of the methodology for financial results formation within the static conception, which formed the basis for IFRS theoretical constructions, as well as the influence of the dynamic accounting conception on the current procedure for establishment of the financial results of economic operators. The article analyzes the main differences between the concepts of expenses and costs, the basic accounting techniques that regulate the financial results formation in terms of the principles of identification, accruals, and matching of income and expenditure. It is emphasized the conventionality and ambiguity of the profit margin due to the subjective assessment of depreciation, accrual of provision for unused vacations, classification of indirect expenditures, procedure for calculation of consumed and sold materials, goods and final products