In accounting, there are special concepts “assets” and “liabilities”. Both are an important component of the balance sheet and represent the most convenient way to summarize information about the activities and financial position of an organization.

Everything that an enterprise has is divided into assets that generate profit and liabilities that participate in the formation of the former. It is important to learn to distinguish between them, to understand what this or that enterprise object is.

Asset and liability balance

The concepts under consideration are the main components of the main report, which is drawn up in the process. Balance accounting depicted in the form of a table in which assets are located on the left side and liabilities on the right. The sum of all positions on the left side is equal to the sum of all positions on the right side. That is, the left side of the balance is always equal to its right side.

Equality of assets and liabilities on the balance sheet is an important rule that must be followed at any time.

If equality is not met when drawing up the balance sheet, it means that there is an error in the accounting that needs to be found.

In order to correctly compose balance sheet, you need to understand what belongs to assets and what to liabilities.

Assets as an element of accounting

These are the organization's resources that it uses in the process. economic activity, the use of which in the future implies profit.

Assets always display the value of all tangible, intangible and monetary assets of the company, as well as property powers, their content, placement and investment.

Examples of business assets:

• Fixed assets;
• Securities;
• Raw materials, materials, semi-finished products;
• Goods;
• Finished products.

All this is property that the enterprise will use in the course of its operation in order to generate economic profit.

Asset classification

According to the form of the functional composition, they are divided into material, intangible and financial.

• Material refers to objects that are in material form (they can be touched and felt). These include company buildings and structures, technical equipment and materials.
• By intangible we usually mean that part of the production of an enterprise that does not have a material embodiment. This can be a trademark or a patent, which also take part in the organization’s office work.
• Financial - imply various financial instruments of the company, be it cash accounts in any currency, accounts receivable or other economic investments with different terms.

According to the nature of participation in the production activities of the enterprise, assets are divided into current (current) and non-current.

• Current assets are used to carry out the company’s operational processes and are completely consumed in one full production cycle (no more than 1 year)
• Non-negotiable — take part in office work repeatedly, and are used exactly until the moment when all resources are transferred into the form of products.

According to the type of capital used, assets are:

• Gross, that is, formed on the basis of own and borrowed capital.
• Net, which implies the formation of assets only from the company’s own capital.

According to the right of ownership of assets, they are divided into leased and owned.

They are also classified by liquidity, that is, the speed of their transformation into a financial equivalent. In accordance with such a system, the following resources are distinguished:

• Assets with absolute liquidity;
• With high liquidity;
• Medium liquid;
• Low liquidity;
• Illiquid;

Long-term assets include land, various types of transport, technical equipment, household and industrial equipment, and other company accessories. Assets of this type are reflected at their cost of acquisition less accrued depreciation, or, in the case of land and buildings, at a price determined by a professional expert.

Liabilities of the enterprise and their participation in production activities

Under The liabilities of an enterprise mean the obligations that the company has undertaken and its sources of financing (including equity and borrowed capital, as well as funds attracted to the organization for some reason).

The equity capital of an enterprise with any form of ownership, except for state ownership, contains in its structure the authorized capital, shares, shares in various business companies and partnerships, proceeds from the sale of company shares (primary and additional), accumulated reserves, public finances in the organization.

For state-owned enterprises, the structure includes state financial resources and deferred revenue deductions.

Borrowed capital

The structure of funds borrowed consists of capital for which this or that property is pledged, regardless of whether the mortgage is issued or not, loans received from banking institutions, bills of various types.

Summarize.

What refers to the assets of the enterprise:

• Fixed and production assets;
• Movable and immovable property;
• Cash;
• Inventory assets;
• Securities;
• Accounts receivable

What refers to the company's liabilities:

• Authorized capital;
• Credits and borrowings from other individuals and legal entities;
• Retained earnings;
• Reserves;
• Taxes;
• Accounts payable.

Difference between liability and asset

The difference is their different functions; Each of these elements of the balance sheet illuminates its own aspect of office work. However, they are closely related between themselves.

When an asset increases, the liability necessarily increases by the same amount, that is, the debt obligation of the enterprise increases. The same principle also applies to liabilities.

For example, if a new loan agreement is concluded with a bank, assets automatically increase, as new finances are received by the organization, and at the same time the enterprise has a liability - debt to the bank. At the moment when the organization repays this loan, there will be a decrease in assets, since the amount of funds in the enterprise’s account will decrease, and at the same time, liabilities will also decrease, since the debt to the bank will disappear.

It is from this principle that the equality of liabilities and assets of an enterprise follows. Any change in the former entails a change in the latter by the same amount and vice versa.

(left side), reflecting the composition and value of the organization’s property on a certain date. Set of property rights: material assets, funds, etc., belonging to a legal entity.

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Synonyms:

Antonyms:

• Utah
• Administrative divisions of the United States

See what “Asset” is in other dictionaries:

assets- a, m. actif m., lat. activus. 1. Cash. Dahl. Any property, as opposed to the debts (liabilities) lying on it. Pavlenkov 1911. Part of the balance sheet of a bank, enterprise, institution, etc., including all types of material assets and monetary... ... Historical Dictionary of Gallicisms of the Russian Language

ASSETS- (French). 1) in commerce, components of property (money, goods, securities), without regard to the liabilities lying on it. 2) in grammar: active voice. Dictionary of foreign words included in the Russian language. Chudinov A.N., 1910 ... Dictionary of foreign words of the Russian language

assets- Resources obtained or controlled by a specific economic entity, arising as a result of past transactions or events and being a source of expected economic benefits in the future.… … Technical Translator's Guide

ASSETS- (asset) Any item, tangible or intangible, that is of value to its owner. In most cases it is either cash or something that can be converted into cash; the exception is early... ... Financial Dictionary

ASSETS- ASSET, asset, husband. (from lat. activus valid, active) (political neol.). 1. The most advanced, politically seasoned and active part of the members of the party or other public organization. Party activist. Trade union activist... ... Ushakov's Explanatory Dictionary

assets- Cm … Synonym dictionary

Assets- (in relation to the balance sheet) one of the two parts of the balance sheet, which reflects non-current and current assets. The risk associated with their use is borne by the organization. The asset accumulates funds invested... ... Encyclopedic dictionary-reference book for enterprise managers

Assets- and passive. An asset in business language is the component parts of property, regardless of existing debts, that is, cash, bills, securities, goods, tools, machinery and equipment, or buildings and land, as well as those having... ... Encyclopedia of Brockhaus and Efron

Assets- (asset) Any object, tangible or intangible, that is valuable to its owner. In most cases it is either cash or something that can be converted into cash; The exception is early payments... Dictionary of business terms

ASSETS- assets (from Latin activus active) 1) the totality of property and funds belonging to an enterprise, firm, company (buildings, structures, machinery and equipment, inventories, bank deposits, investments in securities, patents,... ... Economic dictionary

Even a person who is not involved in business and does not know the basics of economics has heard the term “asset” more than once. This word is most often used when it is necessary to estimate the value of a business and is often considered a factor influencing the final price. In addition, people who own shares in joint stock companies. Everyone knows this too. In this article we will try to understand in more detail what a net asset is, what other types it comes in, and so on.

Definition of the concept

An asset is property that belongs to an organization engaged in economic activity or to an individual. The totality of assets can include those materials and resources that are needed to organize production (or any other business activity). The difference between assets and other resources is that they are acquired for the purpose of further profit. Thus, each asset potentially contains income that can be received in the future, after carrying out certain operations. It turns out that an asset is a tool that can bring profit.

To make it clearer, let's give an example. A business entity makes envelopes from paper and ribbons. In this situation, paper and tapes as materials will be assets that will transfer their value to the price of finished products (envelopes) and thus bring profit.

Types of assets

IN economic theory There are several types of assets. The classification is carried out taking into account various criteria: nature, degree of participation in turnover, period of existence and return.

For example, depending on the nature of the asset, it is bank deposit, real estate (commercial use), securities, shares in a company, property that participates in economic activity and etc.

If we distinguish between assets by their repayment period, we can distinguish between short-term and long-term assets.

Speaking about participation in turnover, we can distinguish between current and non-current assets. The last classification, by the way, is one of the most popular, so we will focus on it.

Current and non-current assets

So, any asset can be classified according to this criterion. It's quite simple if you know what the essence of entrepreneurial activity is. In the example described above, where the business produces envelopes, the paper and tape are current assets because they are cut and included in the turnover of goods in the form of envelopes. Non-negotiable funds can be called those funds that do not become a commodity, that is, do not go into circulation. For example, this is a machine that wraps paper.

The characteristics of asset turnover make it possible to determine how they will be used in the future: they will be immediately converted into finished products or used in such a way that these resources will not be changed, so their resale will be possible in the future. This primarily determines the risk that business owners will be exposed to.

Who can hold assets?

Who can own a business asset? This question is quite simple - the enterprise itself. After all, its balance sheet includes such property as furniture, equipment, buildings and other objects.

If we talk about other types of assets, such as deposits or securities, then anyone can own them. For example, are you like individual You have the opportunity at any time to purchase shares of a particular enterprise in order to later participate in its management and receive dividends. The same applies to other types: deposits, property, and so on.

Why are assets needed?

The main purpose of the assets is participation in the organization production process. Since each asset of an enterprise is some kind of equipment, office space, or even licenses and certificates, their function is to work on the process in general, embodied in goods and services produced by the enterprise. The secondary function of an asset, which determines its importance, is generating income. With proper management and business planning, assets will begin to turn into products that should cost more than their original cost.

Intangible assets

In addition to the types of assets discussed above, there is one more category that should be mentioned. We are talking about such a concept as an intangible asset. This is a slightly different resource with an individual character. Thus, it is noteworthy that it does not have the structure of material things, exists together with some formalized documentation and, therefore, cannot be transferred (or simply is not re-issued due to inexpediency) to other entities.

In the current conditions, we can safely say that every organization or self employed, like any company, have such a resource as an intangible asset. This is explained by the fact that this category includes a whole list of abstract values: reputation, licenses, documentation with permits to conduct activities, databases, intellectual property.

Such assets cannot be felt with your hands, seen with your own eyes, and sometimes even fully appreciated. This is a kind of abstraction, which can be quite valuable. The clearest example is the reputation of a business entity in the business market. It is impossible to determine its value, but every entrepreneur will agree that a lot depends on its quality, including future profits.

Any organization has property - buildings, cash, equipment, product inventories. All this constitutes the assets of the enterprise, the assessment of which allows one to judge the financial condition, conduct business activities, formulate budget policy and redistribute resources to increase profitability.

Definition

To give a simple definition, assets are the property and property rights owned by a company, its cash reserves and intellectual property that generates profit. From an economic point of view, assets are funds obtained externally or as a result of the operation of an enterprise and used to generate profit. In other words, these are resources - everything that the company has at its disposal.

According to the order of the Ministry of Finance, a unified form of accounting for assets and liabilities has been developed in Russia - the balance sheet of an enterprise. All assets are included in one of two sections of the document.

Structure and types

The resources of enterprises are structured by form, speed of turnover, use in activities, sources of funds, ownership, and sales opportunities. There are different approaches to classifying assets, which allow us to understand their significance for the organization from different points of view.

In accounting

There are non-current and current assets, which is how they are divided in accounting. They differ in terms of use (negotiable ones are used for a year, non-current ones - more than 12 months).

Non-current assets are divided into intangible (not having physical expression) and tangible (for example, fixed assets). Current assets are highly liquid resources: they include cash, inventories, short-term investments, etc. The item-by-item structure of resources is reflected in the balance sheet assets.

From an economic point of view

Resources of enterprises and companies can also be classified into pure, financial, illiquid/liquid, short-term/long-term, non-productive, information.

Net are the total assets owned by the organization and belonging only to it. Their value is determined as the sum of all resources available to the enterprise minus borrowed funds:

Net assets = Assets on balance sheet - Borrowed capital

Assets can be divided by liquidity — speed of converting them into money:

• absolutely liquid - funds in national and foreign currency, cash and on current accounts;
• highly liquid – those that can be converted into money within a period of no more than 30 days, without practically losing their value on the market (short-term investments and debts of debtors);
• medium-liquid - converted into money within a month to six months (not short-term and not hopeless receivables, products in warehouse);
• weakly liquid and illiquid – have a long sales period; This subgroup includes fixed assets, dismantled equipment, and bad receivables.

According to the turnover rate in economic activity, assets are divided into:

1. Short-term - these are funds necessary for the ongoing operation of the organization. They can be monetary and ensure the operation of the enterprise (for example, unfinished production, shipped products or goods), and have a quick turnover.
2. Long-term are the resources of an enterprise that are listed on the organization’s balance sheet for a long time. Their main characteristic is that the cost of these funds changes as they are used and determines the price of the products and profitability. Their composition is shown in the following figure.

According to the degree of participation in production, assets are divided into production and non-production. Production ones are directly used in the creation of finished products (equipment, materials, etc.). Non-production assets are listed on the balance sheet, but are not involved in the production of goods (for example, office buildings).

Financial assets are often included in a separate group of assets. They include cash and money in bank accounts, securities, shares of other enterprises, accounts, obligations of other organizations to pay for products received, and other financial instruments.

Information assets are intended to organize the production process. They also bring profit to the company. These include the rights to intellectual property, inventions, patents, a set of documented knowledge, production experience, trademark, trademarks, computer programs.

In international financial reporting

The criteria for reflecting assets in international practice are somewhat different from Russian ones. The key point is how the asset is recognized. IN Russian practice assets are what belongs to an organization by right of ownership. At the same time, not all resources that generate profit must necessarily be owned by the company. For example, if she leases equipment or a building, then such property is not shown as an asset on the balance sheet. In international practice of compiling financial statements The principle of qualitative assessment of an object applies: whether it is under the control of the organization, how it is used and how it affects its solvency.

In this regard, there are a number of specific concepts that are rarely used in Russian practice:

1. Monetary assets are those funds and rights to obligations that have a certain value that does not change as prices change. This is directly cash in hand and amounts in the current account, some bonds, accounts receivable.
2. Non-monetary resources are objects and rights, the real value of which is revalued over time and with changes in prices: fixed assets, inventories, finished products in warehouses, obligations expressed in the delivery of products in kind.
3. Long-term assets held for sale. In international accounting, a separate group is allocated to those resources that will not be used in commercial activities, but acquired for subsequent sale.

Valuation of assets on the balance sheet

Balance sheet is a document reflecting the presence and condition of the organization’s assets, their itemized and total value (the latter is entered in line 1600). By analyzing the value and structure of assets, one can draw a conclusion about the success of the enterprise, its ability to fulfill its obligations and make a profit.

Many indicators are used for analysis, some of which are discussed below.

Cost and average value of total assets

The cost of resources is an assessment, expressed in monetary terms, of the property of an enterprise that generates income or can generate it in the future. It consists of two positions: the amount of current and non-current assets (in the balance sheet these are lines 1100 and 1200, respectively). Thus, the value of total assets is determined as the sum of lines 1100 and 1200. In other words, this is the balance sheet currency: the total for the assets section, line 1600.

average value total resources(SSA) of the organization is found as the arithmetic average between the cost at the beginning of the year (A 1) and at the end of the year (A 2). This is written as a formula:

SSA = (A 1 + A 2)/2

To calculate the average annual cost, the same principle is applied: indicators are taken on a state-by-state basis. billing period, but from balance sheets of different years. The divisor will be equal to the number of years under study (if for two years - 2, if for three - 3, etc.). The average indicators for current and non-current resources are calculated similarly.

Real assets ratio

Real assets include intangible assets, fixed assets, inventories (production) and costs in work in progress - everything that is involved in commercial activities. For analysis, a ratio is usually used - the ratio of the total value of real assets to their total value on the balance sheet. A successful manufacturing company should have a value above 0.5 (50%). Declining means falling production capacity or transfer of the enterprise to other, non-core activities.

Immobilization of assets means their withdrawal from circulation. That is, the share of assets that are not involved in turnover and do not generate income, or are used for other purposes than their intended purpose, is assessed. The immobilization coefficient shows how efficiently the enterprise's resources are used. The indicator reflecting the state of immobilized funds is calculated as the ratio between the permanent (non-current) and current (current) assets of the enterprise.

The lower this indicator, the more liquid resources the enterprise has and, accordingly, the higher its solvency.

Permanent asset index ratio

Constant assets are those recorded in the first part of the enterprise's balance sheet, i.e., funds that are not in circulation. The index of permanent assets shows what part of them the company maintains through equity or what part of own funds constitute assets the sale of which is difficult. Its value is determined by dividing all non-current assets (position 1100 in the balance sheet) by the company’s own resources (1300):

IPA = non-current assets/equity capital

The normal value of this coefficient is from zero to one. Its increase indicates a risk of deterioration financial situation enterprises.

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In an accounting system, assets are recorded on the balance sheet and are purchased or created to increase the value of a company or benefit from its activities. This is the part of the balance sheet opposite the liabilities (the sum of capital and liabilities). The difference between the book value of assets and liabilities is the value of equity, which is called “net assets.” The higher the net asset value, the stronger financial condition companies.

Types of assets

The assets of the organization, depending on their physical (type) form, useful life and reflection in accounting, are classified into types:

• Material and intangible. The first ones have physical fitness(equipment, land, buildings, vehicles). The cost of tangible assets used for more than one year (except land) is subject to depreciation, i.e., the costs associated with their depreciation are distributed over their entire service life. Intangible assets are resources such as securities, trademarks, copyrights, patents, software, and goodwill.
• Long-term and short-term (current). The service life of the former exceeds one year (or one operating cycle). Current assets are used for up to one year (or one operating cycle).
• Non-current and negotiable. All assets are divided into non-current and current. They are displayed in the first and second sections of the balance sheet (under similar names) at their original (book) value. Non-current assets are long-term resources that are involved in production and are not consumed in the course of daily business activities (fixed assets, intangible assets, capital investments). Current assets - short-term economic resources that are used in operating activities and include cash and cash equivalents (treasury bills, certificates of deposit, etc.), accounts receivable, and inventories.

For fixed assets, a minimum acquisition cost threshold is established at the legislative level; long-term assets with a lower value are taken into account as low-value non-current tangible assets. The legislation also regulates the accrual of depreciation (depreciation) outside current assets by introducing service life limits for their groups.

Asset liquidity

Assets are presented on the balance sheet in increasing order of their liquidity, i.e., ability to be converted into cash to repay short-term debt. Depending on the degree of liquidity, there are the following types assets:

• illiquid. Non-current assets (equipment, buildings, construction in progress) are considered illiquid, since the process of their sale (transforming property into money) requires a long period of time (more than one year);
• low liquid. Current assets converted into cash within one year (short-term accounts receivable, inventory);
• highly liquid. The greatest liquidity is characterized by cash and short-term financial investments, used to pay current obligations.

By dividing the value of certain types of current assets by current liabilities, absolute, quick and current liquidity ratios are calculated, with the help of which the level of solvency of the company is measured.

Return on assets

To determine the organization's ability to make a profit from the use of assets, their profitability is calculated (ratio net profit to the value of assets). This financial indicator, in percentage terms, evaluates the return on investment in assets and the efficiency of the enterprise.