Subjectivity in the interpretations of financial performance


  • Natalya V. Tkachuk


Palabras clave:

financial performance, profit, dividends, dynamic profit, static profit, capital, inflation element,


The article provides an analysis of dynamic profit (income from operations) and examines the methods of its generation. The distribution of expenses by periods and corporate accounting policies have been identified as subjective factors affecting this indicator. The static interpretation of the financial performance of an organization (return on investment) has been analyzed. The concepts of capital maintenance  recommended by IFRS have been reviewed in the context of their application in Russia, taking into account the effect of inflation. It has been concluded that in Russia neither static nor dynamic profit is formed in its pure form. The study is based on the analysis of fundamental accounting assumptions (the theories of static and dynamic balance-sheet), research papers on accounting, and the legislation of the Russian Federation governing the business activities of legal entities. The study has justified the use of both dynamic and static profits in the creation of financial statements and proposed a way to represent these data in a single reporting format.


Anderson S B., Brown J L., Hodder L, Hopkins P E. (2015). The effect of alternative accounting measurement bases on investors’ assessments of managers’ stewardship. Accounting, Organizations and Society, Volume 46, October 2015, Pages 100-114;

Barker R, Schulte S. (2017) Representing the market perspective: Fair value measurement for non-financial assets. Accounting, Organizations and Society, Volume 56, January 2017, P 55-67

Fearnley S., Sunder S. (2007). Bring back Prudence // Accountancy, October. – Р. 76-77

Hendriksen, E S, van Breda, M.F (2000). Accounting Theory: Per. from English / Ed. prof. I.V. Sokolov. – M.: Finansi i statistika, P 205.– (Accounting and Audit Series);

Hicks, J. R. (1946), Value and Capital: An Inquiry into Some Fundamental Principles of Economic Theory. Oxford: Clarendon Press.

Hitz J-M. (2007). The Decision Usefulness of Fair Value Accounting – A Theoretical Perspective.-European Accounting Review. Vol.16. № 2. - P 326.

Hoogervorst H. Historical cost versus fair value measurement: les extremes se rejoignent. URL:;

Karzaeva N.N. Problems of valuation of accounting items (2005). - Saint Petersburg .: Publishing house of St. Petersburg State University of Economics and Finance, P. 9;

Kovalev, V.V., Kovalev, Vit.V. (2012), Corporate finance and accounting: concepts, algorithms, indicators: a training manual. - 2nd ed., improved and updated. - Moscow .: Prospect, P 496;

Larionov A.D., Nechitaylo A.I. (2004), Accounting and taxation of financial results: a training manual. - M .: TK "Velbi", Publishing House "Prospect", P 3;

Nobes, C. (2001), Asset Measurement Bases in UK and IASC Standards. London: Certified Accountants Educational Trust, 2001, P 50;

Novodvorskiy V.D., Marin V.V. (2004) Accounting for equity. - Moscow: Economist, P 117;

Odintsova T.M. (2013) The role of accounting in generating the information environment of a balanced sustainable development // International Accounting, № 15, P.9-19;

Procházka D. (2011).The Role of Fair Value Measurement in the Recent Financial Crunch. Prague Economic Papers, Vol. 20, No. 1, pp. 71-88, 2011.

Pyatov M.L. (2010) The limits of balance sheet. Economic restructuring: resources and mechanisms: Proceedings of the international scientific-practical conference. St. Petersburg: Publishing House of St. Petersburg State University of Economics and Finance, P. 219-220.

Rokotyanskaya V.V. (2017) On the question of managing sustainable development of industrial enterprises in a Russian region. Environmental Quality Management. 2017. Т. 27. № 2. P. 5-14;

Ryan P. McDonough, Catherine M. Shakespeare (2015). Fair value measurement capabilities, disclosure, and the perceived reliability of fair value estimates: A discussion of Bhat and Ryan (2015). Accounting, Organizations and Society, Volume 46, October, P P 96-99

Sokolov Ya.Y. (2011). Capitalization of non-current assets in accounting. M.oscow. :Accounting, № 2, P. 91-95.

Sokolov Ya.V. (2000). Fundamentals of Accounting Theory. – Moscow: Physical Education and Sport, P. 441.

Sokolov Ya.V. (2010) Accounting as the summation of economic activities: textbook. - Moscow: Master; INFRA-M, P 134;

Tkachuk N.V. (2018) The role of the report on the finansial position in the provision of the property rights of participants of limited liability companies Amazonia Investiga. Т. 7. № 16. P. 391-401;

Tkachuk N.V (2016). The relevance of reporting information, Moscow: Accounting in agriculture, № 7, P.41-44.

Safdari, M., & Asadi, Z. (2013). Privatization to serve economic development. UCT Journal of Social Sciences and Humanities Research, 1(4).

Yeliseyeva I.I. (2010) Economic Restructuring: Resources and Mechanisms // Economic Restructuring: Resources and Mechanisms: Proceedings of the International Scientific and Practical Conference (St. Petersburg, January 25–27, 2010). St Petersburg, P.47;

Whittington, G. (2015), ‘Measurement in Financial Reporting: Half a Century of Research and Practice, Abacus, Vol. 51, No. 4, Р. 549-571

Zuga E.I. The role of scientific paradigms in the development of accounting (2010). Bulletin of St. Petersburg University. Economics, № 1. P. 143-14.




Cómo citar

V. Tkachuk, N. (2019). Subjectivity in the interpretations of financial performance. Revista San Gregorio, 1(30).