Losses - what is this?

Losses - what is this? What are they? When do they arise? How can they be combated, minimized and eliminated?

general information

Let's start with the definition. Losses are losses expressed in monetary form, which entailed an increase in expenses and their excess over revenues (or a decrease in the profit of an enterprise with the same result). They arise during production and / or sale, when the level of costs exceeds the selling price of manufactured products, works, services, etc. due to various reasons.

As such, fines, penalties, penalties, cancellation of bad debts, uncompensated losses from natural disasters, loss of material values above the natural norm, when the perpetrators, arbitration fees, court costs and so on are not established. At the end of the year, the results are summed up and determined what is available on the dry balance - profits or losses. This allows us to draw conclusions about the correctness of the adopted work strategy and decide on further plans.

What is the loss in terms of legislation?

The loss of an enterprise is a well-written aspect of various laws and regulations. The greatest attention is given to him in the Civil Code of the Russian Federation. The most interesting in this case is article 15, 330 and 331 of the Civil Code of the Russian Federation. What is it said about? The most common and complete loss is considered in Article 15. There it is given its definition and various variations.

So, considering the legislation, it is possible to note both a conscious offense with incurrence of expenses, and non-receipt of incomes, and missed profit, and opportunities to demand compensation. Penalty is given to Article 330 of the Civil Code of the Russian Federation. And the loss of the deposit is already art. 331 of the Civil Code of the Russian Federation. It should be noted that this is not a complete list of articles where the mention of losses occurs. But all other cases - as a rule, when there are quite specific situations.

And what about compensation?

In the legislation for such cases, the phrase "compensation for damages" is used. This means that losses can be compensated in cases when this is stipulated by the Civil Code, normative documents and the contract (if it does not contradict the first two). Therefore, you can expect that at least something back and come back. But it is necessary to understand that this is only for certain cases.

Let's look at small examples. There is an entrepreneur. He made a certain amount of production, but if he can not realize it, then he will have significant losses. This, of course, is bad, but no one will compensate them. And let's say people bought insurance on the house from landslides. There was a natural disaster and the house was destroyed. Well, in that case, the insurance company guarantees damages. This will allow you to buy or build a new home and provide it with all the necessary equipment.

What is it called?

Let's continue to consider the two previous examples. When an entrepreneur can not sell his products, he has an uncovered loss. This does not provide for compensation due to the fact that he knew what was going on, and that he was taking risks that could lead to failure. Because of the impossibility to predict success, an enterprise can wait for failure, and the dependence of the end result on a large number of different factors leads to the fact that no compensation can be provided. After all, in this case, a wide field for abuse opens up.

Whereas in the case of real estate, you can assess the chances that it will suffer in the near future. So, for example, in a certain area for a decade, landslides destroy every twentieth house. In this case, you can take and offer insurance coverage worth 1/10 of the price of the house. Of course, this is a very rough example, but now it is clear how this mechanism works.

The economic aspect

When do losses occur? Prerequisites for them is a number of factors, describing which you can write more than one book. But since the size of the article is limited, we will consider the most frequent reasons for the occurrence.

Initially, it should be mentioned that many entrepreneurs produce products that are not in demand at the existing price-quality ratio. It may also be that it will not be requested at all. Therefore, before embarking on the implementation of a certain project, one should still take care to analyze the potential market and develop at least an approximate plan of activity.

After that, on the list of the most popular reasons are conscientious offenses of sabotage held by third parties. As such, employees of the enterprise (accidentally or intentionally), competitors or responsible persons (supervisors, civil servants and other people) can act. However, in this case, you can still expect a certain compensation. But its acquisition is associated with significant costs.

Conclusion

Profit, loss - these are regular moments of doing business. In order not to be mistaken with the assessment of the existing situation, it is necessary to keep a detailed accounting. Accurate knowledge of the situation at the enterprise will make it possible to make the necessary decisions. So, if too many products have accumulated in the warehouse, then it is possible to stop some of the capacities. In the event that orders do not have time to run, you should think about optimization and expansion.