The Profit® formula is just one of the 8 scientific perfections Business economics

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Originally, the SVD did not exist for tax purposes, and the same applies to IFRS and US-GAAP until today. So from the start, SVD should be set to just equal zero immediately. Regarding tax accounts and accounts to be published, for example IFRS and US-GAAP (financial accounting, “de jure”), only NVD needs to be mastered at present.

Filling in the value of any asset at the start and end of the reporting period results in an NVD figure. The value at the start is the value at the end of the previous period. It suffices to enter only the new final values, that is to say the tax values ​​required respectively the IFRS or US-GAAP values ​​according to the closing balance sheet concerned.

For tax purposes and for IFRS and US-GAAP, certain cost elements are prescribed in the required reports. The tax profit figure as well as the profit figure to be published can be easily calculated by means of the Profit Formula®, which ignores costs. Subsequently, various cost items – because the required reports must of course be complete – can still be determined, in fact now more easily since the figure on the bottom line is already available.

First, all of the cost elements that are currently aggregated and second, the already known profit figure that is measured by the Profit Formula®, ending with an intermediate element, ie “remaining costs all together” which simply falls from the sky.

The same goes for the fiscal and published profit figures (fi IFRS or US-GAAP).

The charm of the Profit Formula® is its simplicity. Other profit determination systems use all kinds of detours to arrive at at most the same result, depending on the set of values ​​and norms that have been used. the Profit Formula® works at both any value and any standard.

Profit is an afterthought figure. When it comes to an entire year, we kind of look at annual sales with our backs turned to the future. While the business may well be heading for disaster. So considered, profit figures are of little use. Profit, however, is not only the consolidated annual profit of a group, but mainly consists of the detailed profits of a specific activity or business unit for short periods.

Knowledge of these benefits is essential in order to guide and be able to adapt. In the end, good management is about creating added value, it’s that simple. The total profit for a period is the sum of its parts. The profit on each product during this period is a part. Profit in addition to its composition, the contribution to the profit of each product (or part of the range), of each customer (or district or market segment), who would not want to be well informed on these subjects?

You can compare a company with a bunch of skaters in a tournament. Some choose longer distances and others shorter distances. Different products, activities, units, divisions. The total gang score in the tournament is the sum of the individual achievements. One ride all year round, 13 tours of 4 weeks each. Lap time. From turn to turn, how many fingers of the coach go up, down?

The acceleration and deceleration during a race can be calculated by measuring the lap times. Without knowing the lap times, it’s hard to say anything meaningful about the acceleration and deceleration during the race. Measuring lap times is for this reason that there is a great need for a user-friendly, above all fast and easy-to-use periodic profit measuring instrument.

It’s here: the Profit formula®

Integration of nominalism (NVD) and substantialism (SVD)

In the examples of institutes, business schools and universities, there are only a few transactions. In practice, thousands, if not tens of thousands of transactions and countless intermediate price changes will soon be involved. For the calculation of profit with any of the current profit determination systems, all transactions must be calculated exactly. What work. Ineffective. A real mess.

Not necessary when in use the Profit® formula. Count everything together: total sales minus total purchases is CASH. In addition, it only concerns a few initial and final values ​​(filling NVD and SVD) and it is ready. the Profit Formula® implicitly takes into account all intermediate price changes and all transactions. You don’t have to worry about it anymore. It saves a lot of work. Counting and calculation work has been reduced to a minimum. For this reason alone the Profit Formula® is second to none. the Profit Formula® works always and everywhere. Effective.

It takes a lot of effort to carry out exercises in the traditional way, sales minus costs, where durable means of production are treated differently from units of commercial goods. It causes a lot of headaches. the Profit Formula® is still not used by colleges and universities, business schools around the world. Don’t ignore the Profit® formula. Students, if they neglect, protest against your trainers! The scientific rationale for Ehe Profit Formula® is explained in ISBN 9781086333992 Scientific evidence as well as practical application.

In the past, until the late seventies of the twentieth century, accounting for inflation consisted of looking for the one and only real profit in the period. Economists and accountants could not solve the problem. “The accounting profession has proved incapable (or reluctant) to deal with the problem of accounting for inflation (Tweedie, Whittington, 1984, p. 346-348). “

CEO and CFO, at present, if you still don’t know what the actual profit is and therefore the actual return is also unknown, you can’t tell if you are doing the right things, and it’s your fault not to use Ee Profit Formula®.

CEO and CFO, at present, if you still don’t know what the actual profit is and therefore the actual return is also unknown, you can’t tell if you are doing the right things, and it’s your fault not to use Ee Profit formula®.

Ee Profit formula® is just one of the 8 scientific perfections described in Business Economics VI Groundbreaking ISBN 9781086355635 (Paperback) and Kindle e-book on www.amazon.com

Revolutionary Business Economics VI ISBN 9789464026405 (Hardcover) at www.boekengilde.nl/boekenshop and www.managementboek.nl

Many outdated Business Economics study books can be replaced with this issue’s study 1 from a triptych. Number 2 is a book with exercises; this is the ultimate test for everyone. Finally check everything. Compare your solutions with the complete elaborations of number 3 of the triptych. Business Economics VI Groundbreaking goes beyond the boundaries of established science and rewrites / improves large swathes of business economics as it is currently poorly taught around the world. Suitable for self-study, students, graduates, everyone even teachers can learn a lot, and every manager will improve their performance.

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