Enterprise assets represent economic resources controlled by the enterprise. The assets of an enterprise are the totality of property and funds belonging to the enterprise, firm, company, in which the funds of the owners and owners are invested.

Assets are formed from the capital invested in them; characterized by deterministic cost, productivity and ability to generate income. The constant turnover of assets in the process of their use is associated with the factor of time, risk and liquidity.

The assets of the enterprise include:

Property of a legal entity (enterprise) that has monetary value;

Property of a legal entity and funds raised;

Securities;

Inventory assets;

Fixed assets;

Financial investments made in enterprises of other entities;

Own patents;

Inventions;

- “know-how”;

Rights to use land and natural resources;

Any other property of an economic entity (enterprise, firm, company, etc.) that can be used to carry out business activities.

Distinguish tangible assets, assets intangible, and financial assets(Fig. 4.1).

Material assets- this is the property of legal entities or individuals, having a material form and monetary value. This:

Owned land;

Buildings and structures for industrial and non-industrial purposes;

Administrative buildings;

Non-industrial facilities that are on the balance sheet of the enterprise (residential buildings, educational, children's, medical, health, sports and other institutions, premises that are on the balance sheet of the enterprise);

Installed and uninstalled production equipment;

Movable property for non-production purposes;

Stocks of raw materials, fuel, semi-finished products (in warehouses, workshops and in transit), finished products;

Property, fixed assets, leased land plots that belong to the enterprise; branches; subsidiaries, if they do not have the status of a legal entity and their balance sheets are not separated from the balance sheet of the parent company.

Tangible assets are divided into reproducible(inventories, fixed assets, material and artistic assets) and irreproducible (earth, subsoil).

In addition to the material resources of the enterprise, which include fixed assets and working capital, the effectiveness of its activities depends on the availability and degree of use of intangible resources.

TO intangible resources These are those resources that do not have a material basis, but are capable of bringing profit or benefit to the enterprise (firm) for quite a long time. The main feature of such resources is the inability to determine the overall amount of benefit they bring.

Intangible assets- the conditional value of objects of industrial and intellectual property, other similar property rights recognized as the object of property rights of a specific individual or legal entity, which generate income for him.

Intangible assets- these are assets that do not have a material structure, a new category in the composition of the enterprise’s property.

Main characteristics of intangible assets:

Lack of material-material (physical) structure;

Long-term use;

The ability to benefit the enterprise;

There is a high degree of uncertainty regarding the size of possible future profits from their use.

All intangible resources are divided into objects of industrial and intellectual property.

TO objects of industrial property relate:

Inventions;

Industrial designs;

Rationalization proposals;

Know-how;

Trademarks and Trademarks;

Goodwill.

Invention is a fundamentally new technical solution to an existing production problem that has a positive effect on the national economy.

Industrial design is a model of a product developed by an author or a team of authors that will be produced at a given enterprise. An industrial design can be three-dimensional, flat (drawing) or combined and is intended for demonstrating products at presentations and exhibitions. A sample is considered new if the set of properties of the new product is not known in any of the countries to fix its priority.

Rationalization proposal - This is a useful recommendation regarding technology and technology used in a single enterprise. Unlike inventions, it may already be known at other enterprises or in areas of the national economy, but at this enterprise it is used for the first time: this is an improvement in the equipment used, manufactured products, methods of control, observation and research; improving safety practices; increasing labor productivity, efficiency in the use of energy, materials, etc.

Know-how (“know how to do”) is certain knowledge and experience of an enterprise in any field of its activity: scientific, technical, production, managerial, commercial, financial, for which the enterprise has spent significant funds. The know-how is not protected by security documents, but is not disclosed.

Trademarks and trademarks - These are original symbols that distinguish the product of a given company from the products of competitors.

Goodwill this is the formed image of the company, the components of which are experience, business connections, the prestige of trademarks, regular clientele, goodwill and favor of consumers, etc.

To objects of intellectual property relate:

Information activities related to the receipt of information materials, their processing, storage, use and distribution;

Software - characterized by a set of software, organizational and technical tools intended for the centralized accumulation and use of information;

Database;

Knowledge base, as well as works of literature and art.

Rights to use industrial and intellectual property objects are called intangible assets enterprises. Certain elements of intangible assets have legal protection in the form of patents and copyrights.

Patent - This is a document issued by the state (state body) to a person or enterprise granting them the exclusive right to use the invention or innovation proposal specified in the patent. The patent owner creates a monopoly on the industrial or other commercial use of intangible resources and, if necessary, can prevent anyone from using them without specific permission.

Ownership rights to intangible resources can be exercised either by the owner himself, or by an authorized representative, or by an enterprise.

Permission to use intangible resources is called license. It provides that the user (licensee) will use objects of industrial or intellectual property for the period specified in the license and will pay a fee to the owner (licensor).

Such remuneration may be paid in the form of established specific rates to the volume of net sales, production costs, or to the cost of a unit of licensed products (royalty) or as a one-time use for the entire period of use (lump sum payment). In fact, the lump sum payment is a license fee.

Financial assets- these are funds of individuals or legal entities in objects from which profit is expected in the future:

Cash in hand;

Bank deposits;

Contributions;

Checks;

Insurance policies;

Investments in securities;

Consumer loan;

Shares of other enterprises that give the right of control;

Specific assets (monetary gold and special drawing rights).

It is one of the fundamental ones in the field of economics and accounting. In order to correctly determine what belongs to this category, you need to clearly understand which tangible and intangible concepts relate to assets and which to liabilities.

So what is included in the assets of the enterprise? The fundamental document that reflects the list of assets is. Ideally, the sum of all the company's assets should be equal to the total value of the liabilities - in the jargon of specialists this is called “the balance has converged”. At its core, this form is very simple, it has only two columns into which all tangible and intangible items owned by the enterprise are distributed.

Net assets

Net assets are the difference between the sum of all assets and the total volume of its debt obligations to creditors, executors, public utilities, etc. The procedure for determining this value is the same for LLCs, state unitary companies, municipal enterprises, cooperatives and business associations.

The sum of all assets in the calculation process includes any property that can be used to generate profit from the activity. However, the following are not included here:

1. Receivable obligations to founders and shareholders.
2. Debts on contributions.
3. Enterprise transfers.

An important point: this category includes only income items that the company currently has - assets that can bring profit in the future are not taken into account in the formula. That is, this does not include government assistance to an enterprise (cooperative, farm), as well as gratuitous receipt of property - their procedure for inclusion in accounting reports is of a general nature.

If you have in your hands a financial report of an enterprise for a certain period (most often a quarter), then the procedure for calculating the assets of the enterprise looks like this:

1. We take data from line 1600 of the accounting report.
2. We subtract from it the debt of the founders for contributions to the authorized capital.
3. We get a certain number.
4. From it we subtract the sum of data from lines 1400 and 1500.
5. We add to the resulting value the future periods described in the paragraph above (state assistance and gratuitous receipt of property).

At the same time, in the professional environment, document flow and theory, the concepts of “net assets” and “equity capital” for an enterprise are equivalent values. This is also enshrined in the federal law regulating authorized capital.

Financial asset

A financial asset is the totality of all property of an individual entrepreneur, enterprise or other type of legal entity. These include:

• cash reserves
• before the company
• available funds

There is also a division of this category into two subtypes: current and non-current assets. They are indicated separately in all forms of accounting documentation.

There are several key characteristics that distinguish property and funds on the balance sheet from others:

• an asset gives an enterprise or entrepreneur a future opportunity from its use
• the company or individual entrepreneur has the legal right to receive this profit
• an agreement or procedure for the transfer of an asset to the use of an enterprise has already occurred and is a fait accompli

Intangible or intangible assets

In addition to tangible assets, an enterprise may also have other, intangible forms. Their key feature is the lack of measurability and tangibility. However, such assets still provide the opportunity to make a profit from business activities in the future, which still classifies them in this category and requires them to be accounted for. These include:

1. Intangible resources in the field of management and organization.
2. Unrealized technologies owned by the enterprise.
3. Reputation of the entrepreneur or joint stock company.
4. Capitalized rights.
5. Privileges (for example, to carry out work on orders, etc.).
6. Advantages of the enterprise over competitors.
7. Tools for control over the sale of goods and services.
8. Insurance guarantees.
9. Intellectual property of any kind (patents, ).
10. Rights to use property.

Non-current production assets

It is well known that the activity of a company is possible only if it has financial resources or property that can be exploited for business or other economic activities. That is, any used object that is related to the activities of the organization is classified as the company’s property. The primary array of non-current assets is created through a mandatory contribution procedure, the purpose of which is to create the authorized capital.

The Civil Code classifies the following objects as division of property:

• land plots
• subsoil areas
• buildings of any type
• forested areas
• transport (sea, river, air, land)

The remaining values ​​are classified as movable property by law. This should include securities, money, financial obligations. It is the sum of fixed assets and intangible objects that are non-current assets of production. In fact, they fit into a triad that ensures the start of a company’s activities (labor resources, objects and, in fact, labor itself).

Current (operating) assets

Current assets, often called operating assets, include all tangible and intangible objects that have currently (or in the current reporting period) been used to generate profit. It is immediately worth noting that the inclusion of long-term financial liabilities here is erroneous - this inaccuracy can often be found in poorly prepared accounting reports. The following assets are also not included in the current assets:

• accounts receivable
• unfinished construction projects
• faulty equipment
• means of labor that have not yet been brought into working condition (for example, purchased machines that are not installed in the workshop)

In accounting, the operating assets ratio plays a significant role - this is the sum of all operating assets that are currently used to generate profit. In fact, the ratio of assets operated to total provides useful information about the enterprise. Based on it, government agencies assess the ability of production to operate uninterruptedly and generate profits.

Non-core assets

There is one more column in the accounting and financial statements, which is also required to be filled out and can provide certain information about the current activities of the enterprise - the volume of non-core assets. Essentially, this concept describes any property of a company or business association that is not currently used to generate income. These may even include facilities such as kindergartens and clinics - this is an echo of the first wave of privatization that occurred in the decade before last.

There is also a scenario in which non-core assets arose due to a change in the orientation of the enterprise: due to the closure of production lines, choice in favor of another market segment, re-profiling. As practice shows, the most appropriate is the transfer or sale of non-core assets, but the law does not oblige joint stock companies and companies to do this. The fact is that long-term maintenance of such objects increases the number of expense items.

As a result, the company's assets are those objects that are used to generate profit from business activities. Also included here is property that can be used for these purposes, but has not been exploited until now.

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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 the financial condition of the company.

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 have a physical form (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 operated 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 are 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 (amortization) of non-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, the following types of assets are distinguished:

• 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 (the ratio of 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.

To fully conduct the company's activities, the owner must be able to operate the balance sheet. When making calculations, he will definitely encounter such concepts as passive and active. An inexperienced person immediately asks the question: what are assets and liabilities and what are their differences? We suggest that you familiarize yourself with the answer to this and many other questions.

Liability/asset and accounting system

Both an asset and a liability represent a certain amount of finance, which is reflected in different parts of the balance sheet. In this case, calculations are carried out in accordance with specific principles. Accordingly, the resulting total value of all assets and liabilities is always identical.

The total amount of assets is the balance sheet currency. This term is not associated with the currency of any country. Its task is to determine the volume of economic activity of a certain company.

Asset Features

If you want to know what is an asset and what is a liability, you must first become familiar with the first concept. In itself, this is a resource managed by the organization under the influence of past events, the use of which will make it possible to make a profit in the future. This resource consists of intangible, material and monetary values. In addition, this includes rights to property in terms of location, composition, and/or investment.

The resource in question is also divided into several categories depending on the form in which it functions. He can be:

• material;
• intangible;
• financial.

The first category usually includes equipment, consumables, real estate, and so on. An intangible type cannot have a physical form; it is represented by a patent, trademark, and so on. However, it also has an impact on the functioning of the company. The last category includes financial debts, funds, investments.

Depending on how they participate in production processes, resources can be divided into non-current and negotiable.

Non-current can be used in several cycles of production activities at once. They can be used in practice until their price is transferred completely to the product being manufactured. Recyclable, in turn, is intended for full use within one production cycle. In other words, it cannot be used repeatedly. Practice shows that the revolving type can be used for a period not exceeding one year.

Features of a long-term asset

This resource includes building structures and/or the land on which they are located, equipment, machinery for the production of goods, vehicles, and so on. The scheme for reflecting them is implemented at the purchase price without taking into account accrued depreciation. There are also exceptions that are relevant for land and buildings, where resolving issues related to their price falls on the shoulders of a professional appraiser.

Features of a current asset

This type is determined from finished goods, available raw materials, volumes of unfinished production batches, as well as inventories of a material nature. This may also include accounts receivable (this is the amount that buyers and customers must pay). Current assets include short-term investments and deposits. Naturally, money is a current asset. The characteristics of all available assets include the following:

• the company receives financial benefits from their continued use;
• both the events and the transaction that lead to the benefit have already occurred;
• The definition of “net asset value” should be understood as a value equal to the difference between the total amount of assets and liabilities.

To understand how an asset differs from a liability, it is necessary to consider the second term and delve into its features.

Passive: characteristics and varieties

If an asset results in profit, a liability is the exact opposite. Its task is to reflect the obligations that the organization has assumed in the process of conducting its own activities.

Without a liability, it is impossible to form an asset, since it is used as a source of its creation. When preparing a balance sheet, liabilities are always reflected in the right column. They are divided into 3 basic sections:

• short-term liabilities;
• long-term liabilities;
• reserves and capital level. In each element or line of liability, you can see the company’s funds, the presence of which makes it possible to fully form the active part of the balance sheet. Reflecting the balance sheet, the assets and liabilities of the enterprise are precisely those parts that are always indicated and without exception.

When asking the question “what is a liability?”, you can answer in just one short sentence. This is the company's capital. It is formed not only from own funds, but also borrowed funds, which are subject to long-term or short-term obligations. On the right side of the balance sheet, the accountant indicates each source, using which the organization generated assets. Summing them up, we get a liability, which, when converted to cash, indicates the exact value of the balance sheet currency. A liability can be called any type of capital of a company, which depends on the type of financial obligations (bill, loan, credit), and the form of organization (statutory or joint stock).

Liability structure

Each company liability can be classified into several categories.

1. Imaginary liability. It is reflected in tax or accounting records as of a specific date, with the help of which the exact value of the net asset is calculated. Moreover, it is already extinguished. If the accountant promptly determines the presence of an imaginary liability, he will be able to prevent double payment (current companies will be preserved and the value will not go down).
2. Hidden liability. In essence, this is a missing obligation, which is still reflected in the structure of the tax, credit or off-budget payment. It appears under the condition of untimely indication of previously listed debts.
3. Actual liability. It really exists and is always indicated on the balance sheet. The degree of urgency is determined depending on the repayment period specified in the drawn up agreement. Having fulfilled its obligations under this liability, the company will always lose a certain share of assets (working/fixed assets, finance, finished products, and so on).

conclusions

Having understood what an asset and a liability are in a balance sheet, you can fully prepare your accounting records. The result of the calculations is to obtain an accurate picture of the efficiency of the enterprise.

In essence, assets and liabilities are an effective means for making adjustments to the company’s current strategy, thereby increasing income and minimizing possible financial losses due to the wrong approach to solving certain problems.

15.08.2018

Enterprise assets - what are they, their types

Each enterprise has its own assets, they all his property is called, that is, property. Assets can be tangible, intangible, as well as monetary, the type depends on the state in which they are located. Let's look at what different types of assets may be.

Let's start with material ones, they call all the property of the organization, which has a material embodiment. These can be various plots of land, as well as buildings erected on them, equipment necessary for production, as well as raw materials from which products are made.

Intangible are called, for example, patents, registered trademarks, that is, everything that was obtained by mental labor. It is worth noting that this does not include human abilities that work for the organization, because they cannot be separated from a person, so they can only belong to him.

Monetary assets, as the name implies, can have their own embodiment in monetary terms, they can be various kinds of papers that carry value, as well as funds in cash stored in various currencies, as well as money reserves that every organization must have.

All assets that have some usefulness in production are also divided further into two types. The first of them are non-current assets, their main distinguishing feature is that they are long-term.

These can be various contributions of the organization, as well as any material assets related directly to production, but at the same time they do not dry out with each cycle and remain in their material state.

In addition, this includes almost all intangible assets, that is, various documents certifying authorship, brands, as well as databases, but only those to which the organization has an indefinite right of ownership.

The second type are those assets that accept direct participation in production and are constantly used, they are called negotiable. Current assets are consumed to the end during production; they can take part in as many production cycles as they last, but the maximum period of their use can be only one year.

In other words, such assets are used directly in production, and only until they run out. Based on these assets, an analysis of the organization is made that can decide its fate.

The fact is that for each type of organization the law establishes a minimum capital amount, which is called the authorized capital, and if the amount of net assets in monetary terms is less than the amount of the minimum possible authorized capital, then the organization must enter the liquidation stage.

It is quite logical that if an asset that must be used in production tends to run out, then the organization must somehow replenish it.

Replenishment of assets can occur two ways, The name of the assets also depends on these methods; they can be net or gross. Gross assets can be purchased with money borrowed from credit institutions, as well as with the money of the organization itself. Net assets are acquired exclusively from funds owned by the organization.

As a result, a net asset is the amount in monetary equivalent that will be obtained if completely sell all property which the enterprise has. The procedure for calculating the net asset of an organization is established by law; this is important for organizations, because they face such calculations every year, and thus the potential of each organization is determined.

In other words, the amount of such assets includes all property of any type that belongs to the organization, but only if this property is not encumbered with debt.

It is also worth saying about non-core assets, not every organization has them. This type of asset may be owned by an organization, but they are not directly related to its type of activity and do not directly benefit production.

An example of such assets could be an organization engaged, for example, in the production and sale of oil, which has its own holiday home. Such assets are always incur losses for the organization, so only giant companies can afford to have them.

Speaking about assets, one cannot help but talk about liquidity, that is, convertibility into money. The most liquid assets are those that can bring the organization the maximum amount of profit in the shortest possible time; the most liquid type is considered to be monetary assets.

Long-term, that is, non-current assets, never become the most liquid, because they are used in production an infinitely large number of times. The liquidity of any asset is calculated by comparison with other assets that the organization has.