Český finanční a účetní časopis 2018(3):27-40 | DOI: 10.18267/j.cfuc.515

Theoretical approaches to the presentation of expenses in the income statement

Miloslav Janhuba¹, Jaroslava Janhubová²

Vysoká škola ekonomická v Praze, Fakulta financí a účetnictví, katedra finančního účetnictví a auditingu, nám. W. Churchilla 4, 130 67 Praha 3 .

Vysoká škola ekonomická v Praze, Fakulta financí a účetnictví, katedra finančního účetnictví a auditingu, nám. W. Churchilla 4, 130 67 Praha 3 .

This paper highlights the essence of ensuring revenue and expenses comparability in the income statement, with an emphasis on their factual dimension. The problem relates mainly to the presentation of costs type composition when they are necessarily adjusted for changes in the inventory of own production. The image of the cost type composition in the existence of an aggregate item "change in inventory" is somewhat deviating from the actual range of cost types that are related to the outputs sold. Correction would be possible using input-output structural model approaches centered on the valuation problem. Appropriate application requires close synergy between financial and managerial accounting, and the detection of some of the nonaccounting variables.

Keywords: Income; Costs; Expenses; Revenue; Cost type; Structural cost model

JEL classification: M41

Published: October 1, 2018  Show citation