Accounting Profits

Accounting Profits

The revenue a company derives from its operations, less all explicit costs. For example, if a company's revenue is $1 million and its total overhead is $750,000, its accounting profit is $250,000. Unlike economic profits, accounting profits do not consider an activity's opportunity cost.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Under the best of circumstances, this should alarm investors; however, with a company that consistently books non-cash accounting profits, it is unforgivable.
ISLAMABAD -- A Senate panel on Thursday asked the National Electric Power Regulatory Authority (Nepra) to collect all the relevant data from the Independent Power Producers (IPPs), compare with its own record and conduct an analysis of the year-wise details of their accounting profits within 10 days and submit a report.
ISLAMABAD -- Senate Sub-Committee on Power Thursday sought year-wise accounting profits report of Independent Power Plants (IPPs) from National Electric Power Regulatory Authority (NEPRA) in ten days.
Sub-Committee on Power in its meeting on Thursday has asked NEPRA to conduct analysis of the year wise details of the accounting profits of Independent Power Plants (IPPs) in ten days' time and obtain the required information from the IPPs.
Skeptics might discount the apparent profitability of Amazon's North America segment because accounting profits depend on a litany of management estimates.
In addition to making conspicuous the pseudo profitability characteristics of accounting profits, EVA proves to be a lead indicator of the future prospects of the firms; the significant increase in proportion of firms eroding shareholders value despite no decline in proportion of profitable firms offers clear indication of imminent financial crisis.
EVA, accounting profits, and CEO turnover: Empirical examination, 1985-1994, Journal of Applied Corporate Finance, 10(2), 90-97.
"It is easy to generate accounting profits. If you are short-sighted, you can grow faster to generate higher accounting profits, but that's not a long-term strategy."
Accounting profits of e1/495 mln were recorded on the transaction c.
Research shows that accounting profits provide little information about value creation--several empirical studies have revealed low correlations between accounting profits and value changes in an annual measurement window.
These include application of accounting profits and Ricardian rents to antitrust enforcement, resource distribution in a double lawsuit, the economics of contract interpretation, foreign exchange regulations and pharmaceutical sector research and development in India, the use of transaction cost economics for choosing between environmental regulatory instruments, and economic analysis of allegations in cigarette litigations and the impact of Federal Trade Commission regulation.
Ball and Brown's research findings indicate correlation between accounting profits and stock market reaction (stock prices).

Full browser ?