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∘ Elguja Konjaria ∘
THE ITEM OF REVENUES AND EXPENSES,THEIR MEANING AND CLASSIFICATION

Summary

The item of revenues includes returns and incomes. Returns is the amount which comes into enterprises, which is benefit of working of enterprises and expresses increasing its own equity without extra investigation.

Returns arise in processing of ordinary enterprises and is known under different names: for example returns of realization of goods, returns from ready product sales, percent, dividends, royalties and rent of lease.

Revenues include also increasing income.

Selling of main assets also belongs to revenues.

Income items mean unrealized incomes, which may produce of revising of limited valuable papers or increasing of long term assets.

Returns will be considered as main benefit in the process of reporting period.

The assessing of returns must be according to received and acceptable remuneration.

Recognition of returns happen when it is expected to get economic benefit and it is possible to evaluate its reliable amount.

Recognition of incomes may happens when the risk of owner moves to seller.

According to standard expenses is decreasing of enterprises, which causes decreasing own equity but not insist owner’s contribution.

There is a direct connection between the expenditure and the revenue receipts for the expenses to recognize.

It implies recognition of the same expenditures and returns caused by the same economic operation or event.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Elguja Konjaria ∘ THE ITEM OF REVENUES AND EXPENSES,THEIR MEANING AND CLASSIFICATION Summary The item of revenues includes returns and incomes. Returns is the amount which comes into enterprises, which is benefit of working of enterprises and expresses increasing its own equity without extra investigation. Returns arise in processing of ordinary enterprises and is known under different names: for example returns of realization of goods, returns from ready product sales, percent, dividends, royalties and rent of lease. Revenues include also increasing income. Selling of main assets also belongs to revenues. Income items mean unrealized incomes, which may produce of revising of limited valuable papers or increasing of long term assets. Returns will be considered as main benefit in the process of reporting period. The assessing of returns must be according to received and acceptable remuneration. Recognition of returns happen when it is expected to get economic benefit and it is possible to evaluate its reliable amount. Recognition of incomes may happens when the risk of owner moves to seller. According to standard expenses is decreasing of enterprises, which causes decreasing own equity but not insist owner’s contribution. There is a direct connection between the expenditure and the revenue receipts for the expenses to recognize. It implies recognition of the same expenditures and returns caused by the same economic operation or event.