Net income

When net profit is called a profit variable, which is reported in the balance sheet of corporations. If it is a negative amount, then one speaks of a net loss. It is the amount that can be paid a maximum of public companies as dividends or in the GmbH to the shareholders.

In accordance with § 268 HGB and § 231 UGB can before the balance sheet, after partial or complete distribution of profits be placed. Here, under Appropriation ( = additions to reserves) and net income is distinguished ( = resolution of the shareholders' meeting or the appropriation of retained earnings ).

The net profit arises only when the balance sheet was prepared after partial use of results. If the annual financial statements declaratory institutions on the Appropriation of net income have decided the balance sheet profit remains as the size of the can decide the shareholders.

The net gain or loss is calculated as follows:

Challenges to the approved annual surplus and the appropriation of retained earnings within the meaning of § 254, § 257 German Stock Corporation Act shall remain unaffected. If the decision on the use of the outcome change, remains under § 278 HGB an adjustment to the original financial statements.

If the balance sheet prepared in accordance with complete results, which account for a post of retained earnings; the undistributed part of the retained earnings are reported under reserves. For public companies, the establishment of the balance sheet after partial result use and thus the identification of retained earnings of the rule.

As can be seen from the above scheme, the retained earnings can be easily affected by changes in reserves and is therefore unsuitable as an indicator of the company's success.

Notional net profit

In affiliation relationships with profit transfer agreements of the 3 set recorded in accordance with § 277 section 2 HGB as an expense and payable to the dominant society amount of the dependent company must be added back to the net income, if necessary. In the case spoken by a fictional accounts profit is just that the amount of the payable to the controlling company profit. However, this estimate is only explanatory nature and is not part of the financial statements ..