Why does the definition of loss say "nothing to do with the owner's distribution of profits"?

Why does the definition of loss say "nothing to do with the owner's distribution of profits"? There are two kinds of losses: one is the loss directly included in the owner's equity; One is the loss directly included in the current profit. In other words, the loss will be reflected in the balance sheet (or statement of changes in owner's equity) and the income statement respectively.

This loss will specifically involve many businesses:

The losses included in the current profits include: inventory loss, extraordinary loss, public welfare donation expenditure, disposal of non-current assets, exchange of non-monetary assets, debt restructuring, etc. The losses generally included in the current profits are accounted for by the "non-operating expenses" account.

Losses included in owners' equity are generally accounted for by the subject of "capital reserve-other capital reserve". Common businesses include changes in the fair value of available-for-sale financial assets included in the owner's equity, and capital reserves increased or decreased by investors according to their shares when other rights and interests of the investee except the net profit and loss change.

Therefore, the loss directly included in the current profits is related to the distribution of profits to the owners. "The loss directly included in the owners' equity, that is, the loss that should not be included in the current profits and losses, will lead to the decrease of the owners' equity and has nothing to do with the distribution of profits to the owners".

Gains and losses directly included in owners' equity or profits have nothing to do with the distribution of profits to owners. Why? Gains and losses directly included in owners' equity or profits refer to capital reserve, and owners' distributed profits refer to the distribution of undistributed profits. Enterprises cannot directly withdraw capital reserve.

Junior accountant! In the definition of income, it has nothing to do with the capital invested by the owner, and in the definition of expense, it has nothing to do with the distribution of profits to the owner. No matter what income, it can't be the capital invested by the owner. If it is the capital invested by the owner, it can also be regarded as income. Doesn't the company make money by absorbing capital? The expenses cannot be allocated to the owner. The profits distributed by the owner are after tax, and the expenses are deducted before tax. Understand?

Expenses and losses affect net profit, so how to understand the definition of "expenses and losses have nothing to do with the owner's distribution of profits"? It is understood that the expenses have been incurred, and the profit distributed to the owners is the existing profit available for distribution. In other words, the distribution of profits to owners will also lead to the reduction of enterprise capital, but it is not expenses, and other expenses that lead to the reduction of enterprise capital are expenses.

Expenses emphasize the outflow of economic benefits in daily activities, while distributing profits to owners is not a daily activity. No enterprise sends money to its boss every day when it is all right. Therefore, in the definition of expenses, it is emphasized that it must be the outflow of daily activities to be characterized as expenses.

As a deduction of the company's operating results, expenses will reduce the profits of enterprises. However, the profits distributed to shareholders are not directly related to expenses. Have you ever seen a company lose money and pay dividends? Think about it. Sometimes an enterprise will distribute profits and losses unrelated to profits to beneficiaries: the profits and losses directly included in the current profits refer to the inevitable property losses or accidental gains of the operating company. Such as natural and man-made disasters or non-operating income. Will affect the increase or decrease of owner's equity. These losses or gains have nothing to do with the capital invested by the owners who participate in the profit distribution of the company, so these are gains and losses that have nothing to do with the distribution of profits to the owners. The form of expenses incurred by enterprises is the decrease of owners' equity due to the outflow of assets, loss of assets or increase of liabilities. However, there are exceptions, such as the enterprise owner withdrawing investment or the enterprise distributing profits to the owner. Although it will cause asset decrease or debt increase and owner's equity decrease, it does not belong to the economic business where the enterprise incurred expenses. Similar questions are aimed at accounting or accounting treatment. If we divide the accounting treatment in the production process into three links: production and operation, income collection and distribution, expenses and cost, and profit distribution, then the expenses belong to the second link and the profit distribution belongs to the third link, so it doesn't matter if we do similar problems. Of course, this classification only involves the accounting treatment related to your problem. I classify it this way so that you can understand the position and motivation of the questioner. For the simplest example, your company has no income, and you increased your capital by 6,543,800+0,000, resulting in changes in your rights and interests. Can you say that you earned 6.5438+0 million? Another example is that your company distributed RMB 6,543,800+to shareholders, which caused changes in equity. Can you say that you lost 6,543,800 yuan?

Losses lead to the outflow of economic benefits. Why the loss has nothing to do with the owner's distribution of profits? The distribution of profits by owners is also an outflow of economic benefits, but it is not a loss.

Why are the gains and losses directly included in the current profits irrelevant to the owner's investment in capital or distribution of profits to the owner? Income is non-operating income, which will increase the owner's equity, but it has nothing to do with the owner's invested capital: loss is non-operating expenditure, which will reduce the owner's equity, but it is not the outflow of economic benefits caused by profit distribution. That's what it means.

What is "profit and loss directly included in current profits"? Why this project has nothing to do with distributing profits to the owners? I understand it this way. The biggest two rights and interests are undistributed profits and subjects related to investors' capital investment.

The change of equity, 1, may be due to the increase of investors' investment, which leads to the increase of paid-in capital, thus changing equity. 2. Distribute profits and changes in equity to investors. 3. Changes in profit itself.

Now this book will explain what profit is.

The profit of an enterprise is the income obtained by the enterprise itself in the course of operation, and it should not be directly related to the investment of investors. Therefore, it is necessary to exclude the change of rights and interests unrelated to the business activities of enterprises, but only fund-raising activities. That is what I call 1 and 2.

For the simplest example, your company has no income, and you increased your capital by 6,543,800+0,000, resulting in changes in your rights and interests. Can you say that you earned 6.5438+0 million? Another example is that your company distributed RMB 6,543,800+to shareholders, which caused changes in equity. Can you say that you lost 6,543,800 yuan?

B mentioned in the book refers to those businesses except A obtained by the enterprise in its business activities, such as income tax and non-operating income and expenditure.

May I ask why the profit and loss should be included in the income statement, and why it has nothing to do with the owner's distribution of profits? "Profit distribution" belongs to the category of owners' equity, and the items at the bottom of the income statement are total profit, income tax expenses, net profit, other comprehensive income, comprehensive income and earnings per share. The profit distribution with the owner is in the balance sheet after the surplus reserve is drawn. Income statement is a periodic report that records the impact of transactions or events on net profit.

I would like to ask why the change of accounting expenses has nothing to do with the distribution of profits to owners. When enterprises incur expenses and distribute profits to owners, the owners' rights and interests will be reduced. However, the expenses incurred by the enterprise do not mean to distribute profits to the owners, nor does it belong to expenses to distribute profits to investors. There is no necessary connection between the two.

Distributing profits to owners means that owners distribute profits to enterprises, not the expenses incurred in enterprise management. How much profit is distributed to the owners will not increase or decrease the expenses.

Profit distribution refers to the distribution of the net profit realized by enterprises between enterprises and investors in accordance with the distribution form and order stipulated by the national financial system.

What are the gains and losses related to the owner's distribution of profits? Gains and losses related to the distribution of profits by owners: non-operating income and non-operating expenses.