The financial condition of the company is assessed, among other things, by the amount of net assets. Since this is the value of all property minus creditor obligations. The article contains a formula for calculating net assets in 2018 based on the 2017 balance sheet with examples.

Net assets in 2018: general provisions

Every day the company uses objects in its ownership for circulation. For example, buildings, offices, land, money, etc. These are the assets of the organization. But this is only a small part of the financial component, because companies often have obligations: credits, borrowings, debts to partners. Therefore, it is important to know what the company’s NAV value is.

Net assets (NA) – these are the company’s own funds that will remain with the company after settlements with all creditors. Therefore, this indicator is often used to fully assess the financial well-being of an organization. Also, the value of net assets may be needed in other cases.

Scheme. When is it necessary to calculate a company's net assets?

Formula and procedure for calculating net assets in 2018

The value of the company's NAV is determined based on the balance sheet indicators. This procedure was officially approved by Order of the Ministry of Finance dated August 28, 2014 No. 84n, according to which the following must be included in the calculation of net assets in 2018:
– non-current assets: fixed assets, intangible assets, work in progress, etc.;
– current assets: inventories, VAT on acquired assets, money;
– short-term obligations on loans and borrowings;
– long-term obligations on loans and borrowings;
- accounts payable;
– other assets from sections IV and V of the balance sheet form.

The calculation of the NAV for LLC and JSC is the same; use the formula for this:

NA = KR – DZ + DBP,
where NA is net assets,
KR – Capital and reserves (line 1300 of the balance sheet),
DZ – receivables from participants for deposits and authorized capital (on page 1230 of the balance sheet only the amount of debt of participants (founders) to the authorized capital is the debit balance of account 75 “Settlements with founders”, subaccount “Settlements for contributions to the authorized capital”),
DBP – deferred income (line 1530 – credit balance of account 98 “Deferred income”).

An example of calculating net assets on a balance sheet
The chief accountant of Alliance LLC uses balance sheet indicators to calculate net assets. At the end of 2017, the balance sheet total assets are equal to:
– long-term liabilities – 35 million rubles;
– short-term liabilities – 15 million rubles;
– future income – 500 thousand rubles.
The value of the LLC's net assets will be 15,500,000 rubles (35,000,000 – 15,000,000 – 5,000,000 + 500,000).

Valuation and ways to increase net assets

The financial well-being of a company directly depends on investments, as well as the correct expenditure of assets to pay off liabilities. Therefore, it is necessary to assess its solvency. To do this, compare the NA indicators with the volume of status capital. Then, based on the final data, analyze the identified changes.

The main thing in the assessment is to understand how much is the difference between the solvency and creditworthiness of the organization. Moreover, the second indicator is the company’s ability to meet all its obligations. For example, pay taxes and fees, loans, as well as amounts of debt for the supply of goods.

Tax inspectors also assess the company's NA. They can put it on the “black list” if the net assets are less than the main material assets. Since the meager amount of net assets is a consequence of large financial losses. This means that tax authorities will be interested in what the losses are associated with and may call the director to a commission for explanatory measures. Their goal is for the company to increase its net assets, otherwise it will go bankrupt or be liquidated. The results of the assessment may be as follows.

Net assets are equal to the authorized capital. The company is at risk if the assessment results turn out to be so. After all, if a participant leaves the organization, then all debt to him will be written off by reducing the authorized capital. This means that the share of remaining participants will not increase.

Net assets are less than authorized capital. If the assessment shows such a result, then urgently take measures to increase the NAV or reduce the authorized capital. There are different methods, you can find them below in the article.

Let's look at an example when the NAV is less than the authorized capital. Our set value is 600 thousand rubles, this is the value of the NAV at the end of 2017. Therefore, measures should be taken to reduce the authorized capital. Previously it was 800 thousand rubles, now lower the bar to 600 thousand rubles. For this:
– make changes to the charter of the enterprise. In this case, the share of each of the resigning participants will decrease. Therefore, amendments to the charter will protect against claims.
– reduce the amount of the authorized capital by the amount of payment of the withdrawing participant, having previously carried out the calculation. For example, there are 6 participants, the payment per exit is 120 thousand rubles. As a result, the capital will be equal to 680,000 rubles (800,000 - 120,000).

Net assets are greater than the authorized capital. In this case, the company has nothing to fear. The only thing is that when a participant leaves, he needs to be given a payment based on the difference between the cost of the private equity and the authorized capital.

Let's look at an example. The LLC has 5 participants, authorized capital – 500 thousand rubles, net assets – 650 thousand rubles. Let's determine the size of the share of each exiting participant: 130,000 rubles. (650,000 / 5 people). Then we calculate the difference between the NAV and the authorized capital: 150,000 rubles. (650,000 - 500,000). The share of each participant is 130 thousand rubles, which is less than the difference in assets – 150 thousand rubles. Then, if one of the participants leaves, the share of the remaining participants will increase from 100 thousand rubles to 125 thousand rubles (500,000 /5 people and 500,000 /4 people).

Ways to increase net assets in 2018

Companies themselves choose how to increase the value of their NA. But the list of legal methods includes the following:
– revaluation of fixed assets;
– free receipt of property from founders or shareholders;
– contributions to property from shareholders;
– capitalization of surpluses based on inventory results in accounting.

How to create and check a balance sheet

Let us tell you the algorithm of actions using the example of BukhSoft Online.

1. We generate transactions for all operations: Operations log, “Fill” button. We fill out the transaction log for the entire period of work.

2. Then you need to close the accounts sequentially for each month (determine the financial result). Next, year-end closing transactions are generated. Click “Fill” in the Operation Log. After this, you need to check the correctness of the reflection of data in the accounting register: Journal of Operations/Reports/By Analytics - The debit and credit balances should be the same, accounts 90, 91, 99 should not have a balance at the end of the year. If one of the points is not fulfilled, you need to check the correctness of record keeping.

3. In the “Reporting Preparation” module, select the desired year. Then, in the “Balance” section, select reporting.

Select the desired period and click "Fill". The program will fill out reports based on Accounting data. The file itself can be viewed, saved or printed in the Ready reports tab.

The ultimate goal of any domestic commercial organization or entrepreneur is to generate income. In this case, the indicator of economic efficiency of the activity of the corresponding entity is determined by the amount of net profit, the calculation formula for which is given in this article.

Business performance indicator

Each Russian business entity develops and approves its own criteria used to assess the effectiveness of business. Such indicators could be:

• cash flow;
• economic performance;
• increase in assets.

In this case, the most significant is the calculation of net profit, which makes it possible to reliably determine the amount of funds remaining in the ownership of the domestic entity of business legal relations.

It should be noted that the value of net profit is used not only to analyze the activities of commercial enterprises, but also allows one to evaluate the effectiveness of state and budgetary institutions.

As follows from the direct instructions of the legislation in the field of regulation of the activities of limited liability companies and joint-stock companies, net profit can be directed to:

• payment of dividends to shareholders or distribution among participants;
• replenishment of working capital and development of the enterprise;
• other needs.

Net profit formula

The requirements of domestic legislative acts do not put into circulation the official methodology for calculating the described indicator.

However, given that net income is the amount of money remaining with a business entity after making all mandatory payments and deductions, to answer the question of how to calculate net profit, you can use the formula:

CP = VP + PD - S - PR - N, where:

• PE - net profit;
• VP - gross profit;
• PD - other income;
• C - cost;
• PR - other expense;
• N - taxes and other contributions to the budget.

It should be especially noted that the cost price refers to the entire range of expenses of a business entity, aimed both at the production of a product or service, and at sales.

You must also remember that net profit, the calculation formula for which is given above, is the final result of the company’s activities for the reporting period and is not subject to any taxes.

At the same time, the described indicator not only serves for internal assessment of the efficiency of doing business by an enterprise, but is also subject to mandatory reflection in the financial statements of a commercial entity.

Formula for calculating net profit on balance sheet

The Ministry of Finance of the Russian Federation, by Order No. 66n dated 07/02/2010, introduced a financial results report form into circulation.

This form contains line 2400, intended to record net income for the reporting period or to reflect a loss.

It is important to note that one way to find net profit is to calculate using company reporting data.

To obtain the desired indicator, you can use the following formula: 2110 - 2120 - 2210 - 2220 + 2340 - 2350 - 2410, where:

• 2110 - gross revenue;
• 2120 - cost;
• 2210, 2220 - production and administrative expenses;
• 2340 - other income, the same expense is reflected on line 2350;
• 2410 - income tax.

The company can also apply a simpler algorithm for calculating the described value by subtracting the data in column 2410 (income tax) from indicator 2300 (profit before tax).

The desired value can be obtained by using the turnover on account 99 in correspondence with account 84.

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Information about net assets

Information on net assets is provided by all joint stock companies (closed and open) and limited liability companies. Moreover, the latter are obliged to report this information only in cases provided for by the Law on LLCs (Federal Law dated 02/08/1998 N 14-FZ “On Limited Liability Companies”) (paragraph “l”, paragraph

The procedure for calculating net assets on the balance sheet - formula 2017-2018

7 tbsp. 7.1 of the Federal Law of 08.08.2001 N 129-FZ “On State Registration of Legal Entities and Individual Entrepreneurs”).

Before considering these cases, let us recall: to assess the value of the net assets of a JSC (in addition to JSCs engaged in insurance and banking activities), they are guided by the Procedure approved by Order of the Ministry of Finance of Russia N 10n, FCSM of Russia N 03-6/pz dated 01/29/2003. The possibility of using this document to assess the value of the net assets of an LLC is stated in Letters of the Ministry of Finance of Russia dated May 13, 2010 N 03-03-06/1/329, dated December 7, 2009 N 03-03-06/1/791.
Now let’s analyze in what cases an LLC is obliged to place information on the value of its net assets in the EFRSFYUL. Let’s make a reservation right away: there is no direct answer to this in the LLC Law. It is possible that legislators will subsequently make clarifications, but for now we will try to sort out this issue on our own.
Obviously, the basis for placing information in the register should be considered those situations where the company, in accordance with the requirements of the LLC Law, is obliged to publicly disclose information about its activities. There is only one such situation in this Law - a public placement of bonds or other issue-grade securities by a company. In this case, as stated in paragraph 2 of Art. 49 of the Law on LLC, society required to disclose information annually in the form of publication of annual reports and balance sheets, as well as other information required by law. Moreover, in paragraph 3 of Art. 30 of the LLC Law establishes: the annual report must contain a section on the state of the company’s net assets. The LLC Law does not provide any other grounds for companies to publish information about their activities.
Thus, information on the value of net assets is submitted to the EFRSFYUL by all closed joint-stock companies and open joint-stock companies, as well as those LLCs that have publicly placed bonds and other issue-grade securities.

How often do I need to submit information?

We will consider this issue separately for joint-stock companies and separately for limited liability companies, since the requirements for them in Art. 7.1 of the Law on State Registration establishes different rules. Let's start with LLC.

Limited Liability Companies

In relation to an LLC, to answer this question, we believe that you need to start from the content of paragraphs. "l" clause 7 art. 7.1 of the Law on State Registration. It says: information is provided in cases provided for by the LLC Law. As we found out, there is only one such case, and it is associated with the company’s obligation to publish an annual report if it has placed bonds and other equity securities.

Thus, LLCs must submit information on the value of net assets to the EFRSFYUL after summing up the results of the previous calendar year.

This conclusion is confirmed by the provisions of regulatory acts on accounting. In particular, paragraph 49 of PBU 4/99 “Accounting statements of an organization” defines: interim accounting statements consist of a balance sheet and a profit and loss statement (in today’s terminology, a statement of financial results). Whereas information on net assets is reflected in the form “Report on changes in capital”, which is part of the reporting, which is compiled based on the results of the company’s work for the year.

Having found out how many times an LLC must post information about the value of its net assets in the EFRSFYUL, we will determine exactly when the company must fulfill this obligation. But here again surprises await taxpayers: what is meant by the date of occurrence of information on the value of net assets, the provisions of Art. 7.1 of the Law on State Registration is not specified. There are no official clarifications on this yet either.

On the one hand, based on the systemic analysis of Art. 7.1 of the Law on State Registration and the Law on LLC on such date can be recognized the date of public disclosure by the company of information about its activities, that is, the date of publication of annual reports. Meanwhile, there are also no legislative norms specifying exactly when an LLC placing bonds and issuing securities must disclose information about the results of its activities. Moreover, there is no separate document regulating the procedure for publishing LLC financial statements.

However, the latter can be corrected: an LLC that publishes its statements has the right to be guided by the Procedure provided for joint-stock companies (Procedure for publishing financial statements by open joint-stock companies, approved by Order of the Ministry of Finance of Russia dated November 28, 1996 N 101) (hereinafter referred to as the Procedure). According to clause 1.2 of the Procedure, publication is the announcement by the company of financial statements in the media for public information. At the same time, as stated in clause 1.3 of the Procedure, the publication of financial statements is carried out after they are approved by the meeting of shareholders (in our case, participants) and confirmed by an independent auditor. Since an LLC is subject to mandatory audit only if its revenue for the year preceding the reporting year exceeds 400 million rubles. or the amount of assets on the balance sheet as of the end of the year preceding the reporting year exceeds 60 million rubles. (Clause 4, Clause 1, Article 5 of the Audit Law), the last condition applies only to individual LLCs.

For your information. According to paragraph 10 of Art. 13 of the Law on Accounting, in the event of publication of accounting (financial) statements that are subject to mandatory audit, such accounting statements must be published together with the auditor’s report (Information of the Ministry of Finance of Russia N PZ-10/2012).

In other words, the LLC’s annual financial statements must be published only after they have been approved by the company’s participants.
Article 34 of the LLC Law establishes that the general meeting of company participants, at which the annual results of the company’s activities are approved, must be held no earlier than two months and no later than four months after the end of the financial year. That is, the company’s annual reporting must be approved no later than April 30 of the year following the reporting year. At the same time, the procedure and terms of mandatory publications accounting statements of organizations are not defined by current legislation.

Note. Although there are exceptions - for example, Art. 7 of the Federal Law of July 27, 2010 N 208-FZ “On Consolidated Financial Statements”.

Previously, the Procedure, with reference to the previous Accounting Law, stated that financial statements must be published no later than July 1 of the year following the reporting year. However, the current Law on Accounting does not contain such a clarification for joint-stock companies (and, accordingly, for LLCs governed by the Procedure). Consequently, the deadline within which business entities must meet when publishing annual financial statements is currently not defined.

Despite the fact that this circumstance indicates that society has complete freedom of action in this regard, it obviously should not delay the publication of reports in the media. And in the absence of anything else, when deciding on the deadline for publishing reports, it obviously makes sense for now to focus on July 1, that is, the date established by the previous regulatory act regulating the field of accounting.

On the other hand, the appearance of net asset value in financial statements does not depend on whether it is published in the media or not. The fact is that this fact of activity of a legal entity arises on the date of signing the annual financial statements by the head of the company. According to the general rule (clause 2 of Article 18 of the Accounting Law), the financial statements compiled (respectively, signed by the head of the company) are submitted no later than three months after the end of the reporting period (that is, no later than March 31). It is then that information about the value of assets becomes significant not only from the point of view of accounting and tax legislation, but also from the point of view of civil law.

Therefore, when determining the moment of submission by the LLC of information on the value of net assets to the EFRSFYUL as the starting point of three working days, during which the said information must be submitted to the operator, the company can accept the date of signing of the financial statements by the head of the organization.

Let's summarize what has been said. Taking into account the information gap in the current legislation, we believe that official clarifications on this matter will soon be issued. The author admits that the official version of the issue under consideration may differ from the opinion expressed in this material. It all depends on what officials will consider as the starting point for the emergence of such a fact of activity of a legal entity as the value of net assets.

Joint stock companies

It must be admitted that no less mysterious formulation is given in paragraphs. "k" clause 7 art. 7.1 of the Law on State Registration regarding the obligation of joint stock companies to provide information on the value of net assets.

However, here the legislator mercifully pointed out the main thing, namely, what is meant by the date of occurrence of information about the value of net assets - this is the reporting date. That is, the date of occurrence of such information is the date of signing by the head of the joint-stock company of the financial statements, where data on the value of assets becomes legally significant. And the company itself is given three working days to report such information to the EFRSFYUL.

So, When provide information, we have decided, all that remains is to find out how often. This question, if we take into account the fee for submitting information to the register, is by no means an idle one. (As follows from the rules of interaction between the operator and users of the EFRSFYUL (http://fedresurs.ru/help), for posting each message the user is charged by the temporary operator (ZAO Interfax) a fee of 640 rubles, including VAT 18% — 97.63 rub.)

For the answer, let us turn to the provisions of the Accounting Law, since the concept of “reporting date” is disclosed in Art. 15 of this Law. In accordance with paragraph 6 of this article, the reporting date means the last day of the reporting period. It is on this date that annual and interim accounting (financial) statements are prepared. By virtue of paragraph 1 of Art. 15 of the Accounting Law, the reporting period for annual reporting is the calendar year, that is, the period from January 1 to December 31 inclusive. For interim financial statements, the reporting period is the period from January 1 to the reporting date of the period for which such statements are prepared (clause 4 of Article 15).

In this case, interim accounting statements are prepared by an economic entity in cases established by the legislation of the Russian Federation or regulatory legal acts of state accounting regulatory bodies, that is, the Ministry of Finance (clause 4 of article 13 of the Accounting Law).

According to clause 48 of PBU 4/99, the organization must prepare interim financial statements for the month, quarter on an accrual basis from the beginning of the reporting year, unless otherwise established by the legislation of the Russian Federation. The Accounting Law does not provide otherwise; therefore, the reporting date for interim reporting is the last day of each month.

However, when considering the issue of the frequency of presentation by joint-stock companies of information on the value of net assets, one should not forget about another paragraph of the said accounting standard, namely paragraph 49, which determines the composition of interim reporting - this is the balance sheet itself and the income statement . Information on the value of net assets, as stated earlier, is reflected in the form “Statement of Changes in Capital”, that is, a form that is included only in the annual financial statements.

Taking into account the above, we believe that it is unlikely that the requirement of the regulatory authorities that joint-stock companies, in order to fulfill the obligation established by Art. 7.1 of the Law on State Registration, within the framework of interim accounting reports based on the results of a month or quarter, an annual form “Report on Changes in Capital” would also be legal.

Note! In Information of the Ministry of Finance of Russia N PZ-10/2012, two cases are noted when legal norms require the preparation of interim financial statements:
1) in accordance with the Law of the Russian Federation dated November 27, 1992 N 4015-1 “On the organization of insurance business in the Russian Federation,” quarterly financial statements are submitted by the subject of the insurance business to the insurance supervisory authority;
2) the quarterly financial statements of the issuer of securities are subject to disclosure in situations determined by Federal Law No. 39-FZ of April 22, 1996 “On the Securities Market”.
However, in both cases, interim financial statements are subject to disclosure, which do not contain information about the value of net assets. In particular, the form “Report on changes in the capital of the insurer” (form 3-insurer) is included only in the annual reporting (clause 4 of the Instructions on the procedure for drawing up and submitting accounting (financial) statements of insurers).

Thus, an analysis of the norms of the current legislation governing legal relations arising on the issue under consideration shows that a JSC (as well as an LLC) must fulfill the obligation provided for in Art. 7.1 of the Law on State Registration, only once a year.

June 2013

Definition

Net assets- this is a value determined by subtracting the amount of its liabilities from the amount of the organization’s assets. Net assets are the amount that will remain to the founders (shareholders) of an organization after the sale of all its assets and the repayment of all debts.

The net asset indicator is one of the few financial indicators, the calculation of which is clearly defined by the legislation of the Russian Federation. The procedure for calculating net assets was approved by Order of the Ministry of Finance of Russia dated August 28, 2014 N 84n “On approval of the Procedure for determining the value of net assets.” This procedure is used by joint-stock companies, limited liability companies, state unitary enterprises, municipal unitary enterprises, production cooperatives, housing savings cooperatives, and economic partnerships.

Calculation (formula)

The calculation comes down to determining the difference between assets and liabilities (liabilities), which are determined as follows.

The assets accepted for calculation include all assets of the organization, with the exception of receivables of the founders (participants, shareholders, owners, members) for contributions (contributions) to the authorized capital (authorized fund, mutual fund, share capital), for payment of shares.

The liabilities accepted for settlement include all liabilities except deferred income. But not all future income, but those that recognized as an organization in connection with the receipt of state assistance, as well as in connection with the gratuitous receipt of property. These incomes are actually the organization's own capital, therefore, for the purposes of calculating the value of net assets, they are excluded from the short-term liabilities section of the balance sheet (line 1530).

Those. The formula for calculating net assets on the Balance Sheet of an enterprise is as follows:

Net assets = (line 1600 - ZU) - (line 1400 + line 1500 - DBP)

where ZU is the debt of the founders for contributions to the authorized capital (it is not separately allocated in the Balance Sheet and is reflected as part of short-term receivables);

DBP – deferred income recognized by the organization in connection with the receipt of government assistance, as well as in connection with the gratuitous receipt of property.

An alternative way to calculate the net asset value, giving exactly the same result as the formula above would be:

Net assets = line 1300 - ZU + DBP

Normal value

The net asset indicator, known in Western practice as net assets or net worth, is a key indicator of the activity of any commercial organization. The organization's net assets must be at least positive. Negative net assets are a sign of the insolvency of an organization, indicating that the company is completely dependent on creditors and does not have its own funds.

Net assets must not only be positive, but also exceed the authorized capital of the organization. This means that in the course of its activities, the organization not only did not waste the funds initially contributed by the owner, but also ensured their growth. Net assets less than the authorized capital are permissible only in the first year of operation of newly created enterprises.

Net assets on balance sheet

In subsequent years, if net assets become less than the authorized capital, the civil code and legislation on joint stock companies require that the authorized capital be reduced to the amount of net assets. If the organization's authorized capital is already at a minimum level, the question of its further existence is raised.

Net asset method

In valuation activities, the net asset method is used as one of the methods for assessing the value of a business. With this method, the appraiser uses data on the organization's net assets according to the financial statements, previously adjusted based on its own estimated values ​​of the market value of property and liabilities.

Net assets

The concept of private equity is regulated by the Civil Code of the Russian Federation, defining them as a liquidity criterion for an organization, regardless of its organizational and legal form. Net assets are the difference reflected in the balance sheet between the value of all types of property of the institution (fixed and cash assets, land property, etc.) and the amount of established liabilities (accounts payable of the organization). NA is the own capital funds of any enterprise, in other words, the capital property that will remain at the disposal of the institution after the repayment of all debts incurred to creditors and the sale of property assets.

The calculation of the value of net assets on the balance sheet must be carried out annually during the preparation and preparation of annual financial statements. The calculated NAV value demonstrates the real financial position of the enterprise as of the current date. The amount of net assets in the balance sheet is line 3600 in section 3 of the Statement of Changes in Capital.

How to calculate: formula for calculating net assets

The calculation of net assets is regulated by the Ministry of Finance of the Russian Federation through Order No. 84n dated August 28, 2014, which defines the concept of net assets - the formula.

Net assets on balance sheet (line)

Its enforcement applies to the following types of organizational and legal forms of enterprises:

• public and non-public joint stock companies;
• LLC - limited liability company;
• SUE and MUP;
• production and housing savings cooperatives;
• business partnerships.

NA = (VAO + OJSC - ZU - ZVA) - (DO + KO - DBP).

Let's decipher the main terms of this formula:

• VAO - non-current (JSC);
• OJSC - current JSC;
• ZU - debts of the founders to the institution for filling shares in the management company;
• ZBA - debt from the repurchase of own securities (shares);
• DO - long-term liabilities;
• KO - short-term liabilities;
• DBP is the profitability expected in future periods.

The formula for net assets on the balance sheet is as follows:

The value of net assets in the balance sheet, line 3600, is entered after its calculation in the “Report on Changes in Capital”, form according to OKUD 0710003.

All settlement procedures must be carried out in writing and certified by the accounting department, on a separate form developed by the enterprise independently and enshrined in the accounting policy.

How to calculate net assets on a balance sheet, example

Indicator analysis

NA must be calculated to record the current financial condition of the enterprise. By studying their value, the owners draw conclusions about the efficiency and productivity of the business and make decisions on further investment or withdrawal of their funds. Net assets in the balance sheet, line 3600, demonstrate to the owners how profitable their cash investments and the institution's equity capital are.

NA is extremely necessary for analyzing financial and economic activities. They are also taken into account when paying dividends. NA must be positive, and their indicator must exceed the size of the authorized capital. When their value grows, management can conclude that the organization’s profits are growing. Negative net assets can be observed in the first year of the enterprise’s activity - the most difficult period for operation, when the NAV can decrease and be significantly lower than the invested capital. In the case when an enterprise has been operating for a long period of time, and the NAV is negative, this indicates that the organization is operating ineffectively and investments are not profitable.

An increase in net assets is associated either with a change in their value (for example, revaluation of fixed assets) or with a change in the value of liabilities. Also, the increase in the NAV is made due to additional investments of the founders when additional capital is used.

Asset classification

The company's assets include the cost expression of the resources that support the production process of the enterprise.

Net assets: calculation, value, formula

Assets include:

• Non-current assets (structures, buildings, machinery and equipment, transport, etc.),
• Working capital (cash, accounts receivable, short-term investment, etc.).

Asset accounting is mandatory for most Russian enterprises. All assets are concentrated on the left side of the balance sheet and are divided according to their purpose:

• The first section of the balance sheet is represented by non-current assets (fixed assets and intangible assets), which are accounted for in accordance with their residual value less depreciation (line 1100 of the balance sheet);
• The second section of the balance sheet is represented by working capital, which is directly involved in the production process (line 1200 of the balance sheet).

Formula for the average annual value of assets on the balance sheet

To calculate the average amount of assets of an enterprise for a year, it is necessary to add up the amount of assets at the beginning and end of the year. This amount is then divided by 2 or multiplied by 0.5.

The formula for the average annual value of assets on the balance sheet uses financial reporting data.

In general, the formula for the average annual value of assets on the balance sheet is as follows:

SA avg = (SAnp + SAkp) / 2

Here CA av is the average annual value of assets,

SAnp – asset value at the beginning of the period,

SACP is the value of assets at the end of the period (year).

The formula for the average annual value of assets on the balance sheet allows you to make calculations both for the assets of the enterprise as a whole, and separately for current and non-current assets.

Calculation features

The total assets of the enterprise are recorded on line 1600 of the balance sheet, which is compiled by accountants at the end of each year. When applying this formula, they use balance sheet indicators for several years, while the indicator on line 1600 is taken from the balance sheet for each year, summed up and subsequently divided by 2.

In the case of calculations for current assets, the formula for the average annual value of assets on the balance sheet will require information from line 1200 of the balance sheet. If calculations for non-current assets are required, then the accountant uses the indicators on line 1100 of the balance sheet. The indicators must be used in a similar way by finding the average value of assets and comparing balance sheet data for the corresponding years.

The value of the average annual value of assets on the balance sheet

The average annual value of assets, which is calculated by analysts, is subsequently used when calculating coefficients that can characterize the state and efficiency of any enterprise:

• Return on assets
• Asset turnover ratio, etc.

The indicator is also used to find the reasons that led to changes in the operation of the enterprise and make decisions in the field of resource management.

The average annual value of assets indicator can give a more accurate understanding of the size and value of assets, while it neutralizes circumstances that can distort the real amount of assets.

If the asset turnover indicators of different enterprises for different years are compared, then it is necessary to check the uniformity of the assessment of the average annual amount of assets.

Examples of problem solving

DEFINITION

Net income represents the amount of income that remains at the disposal of companies after all tax payments included in the price of a product (service) have been paid.

Among such tax payments, the main ones are:

• VAT (value added tax),
• Excise taxes,
• Customs duties, etc.

The net income of an enterprise is often called all the assets that became the property of the enterprise during the previous reporting period minus all expenses.

In practice, an indicator such as net present value is often used, which is the accumulation of the discounted effect over a certain period of time. The indicators of net income and net present value reflect the excess of the amount of cash receipts over the amount of costs for the implementation of a certain project (or for a certain period of time). In this case, the calculation can be carried out taking into account or without taking into account effects that relate to different periods of time.

Net present value is most commonly used to evaluate investments.

Net Income Formula

The net income formula is as follows:

BH = VD – N

Here BH is the amount of net income,

VA – the amount of gross income,

N – tax payments included in the cost of products.

For this formula, we can determine gross income using the following formula:

VD= C*Q

Here VD is gross income,

P – price of the product,

Q – quantity of goods.

Also, to the result obtained using the gross income formula, the amounts of other income received are added, which are taken into account when calculating gross turnover:

• dividends,
• charitable proceeds,
• the amount of funds from the sale of securities, etc.

Formula for net income based on gross receipts

Another option for calculating net income is the following formula:

BH = BB – (PostR+PerR) – N

Here ВВ is the amount of gross revenue,

PostR – fixed costs,

PerR – the sum of variable expenses,

N – amount of tax payments.

Gross revenue includes funds that an enterprise receives in cash in the process of carrying out commercial activities. These incomes include:

• Cash (cash and non-cash form),
• Material assets (for example, equipment, raw materials, supplies),
• Intangible assets (trademark, patent, technology, etc.)

Gross Income Value

The net income formula is most often used when estimating and adjusting sales profits by expenses. The amount of expenses takes into account the amount of tax payments, the amount of depreciation deductions, the interest rate, etc.

The net income indicator shows the profitability of enterprises over the corresponding period of time. If the calculation process results in a negative value, then we can say that the company received a net loss.

Using net income, many businesses calculate earnings per share, which reflects the amount of income contained in each share of the business.

As is known, by the end of March 2017, Rosstat and the tax authority must receive the enterprise’s annual statements, which must include a balance sheet. So it's time to take advantage formula for calculating net assets according to the 2016 balance sheet of the year. Moreover, it is established by law.

What are net assets called?

Successful conduct of economic and entrepreneurial activities is impossible without analyzing its key financial characteristics. One of the main quantities among them is the value net assets of the organization.

In general terms, the value of net assets is the difference between the value of all the assets of the company and the sum of all its debts and obligations.

Please note that net assets are calculated by:

• integrally annually and reflected in the annual report;
• if necessary, obtain data on the current economic state of the company, issue dividends or the value of a share in the business.

Place net assets of the enterprise on the balance sheet

To see, Where are the net assets on the balance sheet?, you need to look at Section 3 of the same name in the Statement of Changes in Equity. It looks like this:

As seen, net assets on the balance sheet are– a special separate indicator. According to the order of the Ministry of Finance dated July 2, 2010 No. 66n code net asset lines on the balance sheet – 3600.

How to calculate net assets on a balance sheet

It is suitable for organizations of most forms of ownership:

• CJSC and PJSC;
• State unitary enterprises and municipal unitary enterprises;
• Cooperatives;
• business partnerships.

NA = (AK – Z uch – Z vak) – (O – D b)

Wherein:

CHA– net assets;
AK– assets (current + non-current);
Zuch– the debt of the founders to the company to pay for their shares in the management company;
Zvac– debt obligations to repurchase their shares;
ABOUT– existing obligations (with long and short terms of fulfillment);
D b– income that is planned to be received (aid from the state, free receipt of property).

How to make a payment

It should be taken into account the fact that one calculation net assets according to the formula not enough. This fact needs to be documented. Meanwhile, there is currently no legally approved document form for these purposes. Therefore, firms are required to develop their own form and adopt it as an addition to their accounting policies.

However, previously there was an order of the Ministry of Finance No. 10n and the Federal Commission for the Securities Market of the Russian Federation No. 03-6/pz dated January 29, 2003 with a similar form for joint-stock companies. Although it is no longer valid, any business can use it as a guide when developing their own uniform.

How to calculate net assets on a balance sheet

To obtain the necessary information, you can use not only the net assets formula, but also calculate them line by line when the balance sheet has already been compiled.