On The Definition Of Profit

Twenty-first Century witnessed the 2012 doomsday absurd, but also experienced extensive development and economic supremacy of human society bring disaster. "Sustainable development" concept proposed in the 70s of the 20th century and has been responses and supported by national society in the 21st century. On both the macro social economic and micro enterprise development, economic establish close contact with the word "sustainability". The definition of modern profits still clings to the traditional thinking. It just means the difference between the income and cost, which has been unable to meet the demands of modern enterprise accounting elements. Sustainability requires companies not only to focus on the economic benefits, but also to pay attention to the accumulation and effects of its ecological benefits and social benefits from a long-term strategic point of view. This means accounting is facing a chance that the definition of the accounting elements proposed changes in requirements. But the contradiction is the unity of opposites. Sustainable development not only challenges the current definition of the profit at the same time, but also provide an opportunity from the inside to profit definition for destruction. Through defining the elements of profit in the modified or re combination, making the definition of profit innovation and keeping pace with the times is more in line with the requirements of the modern enterprise accounting theory proposed. It also can make the modern accountant and the modern profit is defined for the social development and operation of enterprises to actively guide.Modify the definition of profit is imminent, and how to modify the definition of profits so that it can meet the three aspects of economic benefit, ecological benefit and social benefit is the requirement of modern accounting thinking. The core idea by introducing Joseph Alois Schumpeter’s theory of economic development put forward-creative destruction theory can satisfy the needs of enterprises in the three aspects of the demand. Innovation is the core of the destruction of innovation and research and development, innovation is the purpose, the destruction is the way. To destroy the original production function and to re combine elements of production, the new resource portfolio model, so as to produce new products. This theoretical basis can be introduced into the definition of profit, once the profit is based on innovation, to encourage enterprise innovation, then the three aspects of the comprehensive benefits of the enterprise can be met. First, new products are social and market recognition, can bring to the enterprise net income inflows; secondly, the new production function can promote enterprises to improve the efficiency of resource use, the enterprise from the previous extensive development towards the direction of technological innovation development guide and protect the ecological environment benefit. Finally, the innovation of production function in enterprise brought industry technology and institution innovation and Reform in the industry will slowly bring social technology and the institution change, from quantitative change to qualitative change, innovation will eventually promote social progress and become one of the motive force of the social development.Corporate governance as a modern enterprise internal resources important configuration theory, has become the enterprise financial management and control of the main accounting theory of creative destruction in the introduction and development of changed the traditional accounting profit definition and accounting is bound to corporate governance impact may be in the following several aspects to promote the development of corporate governance.First of all, the application of innovative damage in the definition of profit has improved the economic efficiency of enterprises. The purpose of innovative destruction is to produce new products or services for the community to accept, for the favor of the market. In the promotion of this purpose, the economic efficiency of enterprises will be improved, the value creation of enterprises will be feedback, the economic inflow of enterprises will be increased.Secondly, the application of innovative destruction in the definition of profit has improved the ecological benefits of enterprises. Creative destruction can use only limited resources, and want to use limited resources to create as large as possible profit enterprises need to improve the efficiency of resource utilization, minimize pollution emissions, to create profits through low cost and high output at the same time, enterprises taking into account the protection of the ecological benefits.In the end, the application of innovative destruction in the definition of profit increases the social benefits of enterprises. In 2014, Li Keqiang, the prime minister proposed the concept of innovation and public entrepreneurship peoples, it is because of this innovative ideas to promote social progress. From the beginning of the production function of an enterprise, enterprise technology innovation and system innovation, and to try to become the industry leader, industry of technological innovation and institutional revolution triggered by the enterprise, to guide the industry as a whole to a more positive direction. When every industry in the community has such an innovative move, it will lead the society to more efficient and more scientific direction, so that innovation has become the driving force of social benefits.Enterprise accounting in the process of change, pay attention to strengthen the input and output capacity of enterprises in innovation research and development. In the fierce market competition, due to business accounting to management authorities for the enterprise to provide timely and reliable and useful information about the value creation, if the accounting personnel of the enterprise cannot do for research and innovation value creation into and continue to create value the ability to achieve the objective and effective evaluation, will on the strategic management of the judgment and implications for the implementation, so enterprise financial and accounting personnel only through a strategic and overall perspective to provide and enterprise management decision-making related to financial information. To meet this requirement, one of the main measures is to strengthen the accounting personnel of the enterprise to the degree of attention and analysis and evaluation of innovative R & D capabilities, so as to better serve the managers and accounting users.In the process of change, now the profits of the accounting elements of the management object is mainly the economic aspects of digital positioning, at the same time, now involved in enterprise accounting have on innovation content and scope is relatively small. Modern accounting in the process of running mainly to economic benefit as the starting point, the use of cost accounting and revenue accounting for enterprises to carry out a full range of management, but under the background of sustainable development, in the enterprise the accounting operation mode, in the three aspects of economic benefit, ecological benefit and social benefit comprehensive index based were accounting, and the comprehensive index of the basic starting point is in the creative destruction theory under the new profit is defined.