Current assets are greater than non-current assets. What are non-current assets of an enterprise: examples. Common subsystems for enterprise asset management

current assets are assets that serve or mature within 12 months, or during the entity's normal operating cycle (if longer than 1 year). Many current assets are used simultaneously when they are released into production (for example, raw materials and supplies). Current assets are one of two groups of assets of the organization (the second is non-current assets). Accordingly, one of the two sections of the Asset of the balance sheet is called "Current Assets". Current assets are also called current assets.

Composition of current assets

In accordance with the form of the balance sheet, the following current assets are distinguished:

VAT on purchased assets;

accounts receivable;

financial investments (excluding cash equivalents);

cash and cash equivalents;

other assets that meet the characteristics of current assets.

Accounts receivable and financial investments are classified as current assets only if their maturity is less than 1 year, or the period exceeds 1 year, but the organization is confident in the high liquidity of these assets, the ability to quickly and without loss convert them into cash (i.e. e. to sell).

Current assets, in principle, have a higher degree of liquidity than non-current assets. And money, as part of current assets, has absolute liquidity.

Analysis of current assets

A sufficient amount of current assets is necessary for the smooth operation of the enterprise, whether it be materials used in the production process, or cash for settlements with suppliers. Therefore, the analysis of the liquidity of assets is central to the financial analysis of enterprises. In the course of the analysis, they study the sufficiency of liquid assets for timely settlements with suppliers and contractors for current debt. To do this, current assets in general and their groups according to the degree of liquidity are compared with the total value of the organization's short-term liabilities on the same date (liquidity ratios are calculated, including automatically using special programs).

A high proportion of current assets is typical for material-intensive industries and trade organizations. The higher the share of current assets (and, accordingly, the lower the share of non-current assets), the more the organization can attract short-term financing (short-term loans, deferred payments to suppliers, etc.) without compromising its financial stability.

Fixed assets- these are assets, the term of use (repayment) of which is more than one year. The total amount of the company's assets consists of non-current and current assets. Accordingly, non-current assets are one of the two sections of the Assets of the balance sheet.

Composition of non-current assets

Non-current assets include:

intangible assets;

research and development results;

fixed assets;

profitable investments in material values;

financial investments, the return of which is expected not earlier than in a year;

Deferred tax assets;

other assets with signs of non-current assets.

In fact, non-current assets include labor instruments (machines and equipment) that are consumed in the process of use not at once (as materials), but over a long period, and liabilities receivable no earlier than 12 months later.

By the ratio of the share of current and non-current assets, one can judge the nature of production. So, capital-intensive enterprises (for example, telecommunications) are characterized by a large share of non-current assets, and material-intensive (or commodity-intensive, like trade) - a small one.

Analysis of non-current assets

Non-current assets require long-term investments, so the sources of their acquisition should be mainly the organization's own capital, and partly long-term borrowed funds. Therefore, the more capital-intensive production, the greater should be the share of equity in the sources of financing of the enterprise.

Non-current assets have less liquidity than current assets, i.e., they are more difficult to sell by converting them into cash. In general, liquidity, as one of the indicators of financial stability, depends on the structure of the enterprise's assets and the sources from which their purchase was financed (see all liquidity ratios in the Financial Analyst's Handbook).

It should be noted that the maturity of an asset is not always a sign for classifying an asset as a current or non-current asset. The liquidity of the asset also plays a role. For example, accounts receivable due in 2 years would normally be treated as a non-current asset. However, the organization's confidence in the ability to sell it without loss at any time before this date may be the reason for attributing receivables to current assets.

Information about non-current assets is one of the most important components of the balance sheet. In the article we will tell you what non-current assets of an enterprise are, what is their structure, what is the procedure for reflecting information about assets in the balance sheet and accounting, and also answer frequently asked questions on the topic.

The concept of non-current assets

The fundamental principle of the company's balance sheet structure is its division into assets and liabilities. Entrepreneurs, accountants, as well as those who are at least slightly connected with commercial activities, know that the sum of a firm's assets is always equal to its liabilities. But at the same time, not everyone knows that the amount of assets consists of current and non-current funds, which, in turn, also have their own structure and classification.

What are non-current assets and how do they differ from current assets. Each of the assets belongs to the company and is at its disposal. At the same time, the company has the right to use (pay for goods at the expense of cash, produce products on equipment, etc.) or not use the asset (materials in stock, building on conservation). And in each of these cases, the fact of using an asset is not a criterion for classifying it as current or non-current.

The fundamental difference between each of these concepts lies in its essence, namely, in the indicator of liquidity, or turnover. The closer an asset is to the highest liquidity indicator, the more obvious it is to classify it as a current asset. If the asset is not liquid, then it is considered non-current.

Asset turnover criteria

There are several criteria for determining the turnover of an asset, on the basis of which an object can be classified as a group of non-current assets. So, an asset is recognized as non-current on the basis of the following requirements:

• The company plans to use the facility for more than 12 months.

Example 1 Status JSC purchased a copier with a useful life of 5 years.

• The object is used for a period of more than 1 operating cycle.

Example 2 Plant "Znamya" purchased equipment for the manufacture of products. Full production cycle - 14 months.

• The firm has accounts receivable with a maturity of more than 12 months.

Example 3 JSC "Monolith" paid the contractor an advance for construction work, the deadline for which will come after 18 months from the date of transfer of the prepayment.

• Loans and credits provided by the company in favor of other persons/organizations. The loan repayment period is more than 12 months.

Example 4 Credit company "Drug" provided a loan with a repayment period of 1.5 years.

If the object does not meet the above criteria, then it can be classified as current assets.

Non-current assets: composition and structure

Non-current assets are divided into 4 main groups, each of which has its own structure. Generalized information about the types and structure of non-current objects will be presented in the form of a table.

We reflect assets in the balance sheet and accounting

The basis for reflecting information about assets in the balance sheet is accounting data. Below we will talk about the basic rules for the reflection of non-current assets in accounting and balance.

Asset accounting entries

Objects of non-current assets entering the company's accounting are recognized as investments and are reflected in Dt account 08. See also the article: → "". Depending on the type of the received object, the following synthetic accounts can be used in the form:

• when buying land, the accounting should reflect the posting according to Dt 08.1;
• received objects of forestry, water management, subsoil are taken into account according to Dt 08.2;
• during the construction of the OS (both on its own and with the involvement of contractors), an entry is reflected in the accounting according to Dt 08.3;
• the cost of assets acquired for a fee is reflected under Dt 08.4 (OS) and Dt 08.5 (IA);
• agricultural organizations use accounts 08.6 and 08.7 to account for investments;
• the cost of scientific developments and research is taken into account according to Dt 08.8.

In general, the value of investments in assets is formed by posting:

• Dt 08 Ct 02, 70, 69…

If we are talking about writing off an asset (for example, reflecting the costs of exploration assets in connection with their unpromising production), then the following entry should be made in the accounting:

• Dt 91.2 Kt 08.

When an asset is put into operation, the following entries are reflected in the accounting:

• For buildings, equipment, machinery, transport:

Dt 01 Ct 08.

• For software, licenses, patents:

Dt 04 Ct 08.

• For property purchased for rent for paid use:

Dt 03 Ct 08.

• The provision of a loan corresponds to the entry:

Dt 50 (51, 52,) Kt 58.

How to reflect non-current assets in the balance sheet

Based on accounting data, information on non-current assets is reflected in the company's balance sheet. The data should be indicated in the relevant section (Section I) by types of assets:

• pp. 11-10 - NMA;
• pp. 11-20 - research and development;
• pp. 11-30 - OS;
• pp. 11-40 - investments in material values;
• pp. 11-50 - financial investments;
• lines 11-60 – deferred tax assets;
• pp. 11-70 - other non-current assets.

The indicators for inclusion in the balance sheet are the sums of the balances of assets reflected in the corresponding synthetic accounts. The total for the section is reflected in line 11-00.

Analysis and management of non-current assets of the enterprise

Analysis of the cost, composition and structure of non-current assets is carried out on the basis of accounting and reporting data. In particular, information on synthetic accounting records reflects:

• value indicators of assets (final balance of accounts);
• structure of assets (balance on sub-accounts);
• the volume of operations with objects (turnovers on accounts).

Based on section 1 of the balance sheet, you can analyze the structural and cost indicators of assets at the reporting date. Analytical information is the basis for actions to control and manage assets:

• An overestimated indicator of the cost of fixed assets (line 11-30 in the balance sheet) with a low level of production gives rise to an inventory. After a detailed analysis of the composition of fixed assets, management may decide to sell fixed assets, as well as liquidate obsolete objects.
• Data on account 08.8, as well as information in line 11-20, allows you to analyze the costs of developing assets.

If the cost figures are significantly higher than the estimated income, then it is advisable for the organization to stop development and write off the amount of costs as an expense.

• A situation is possible when a company does not provide property for rent, but at the same time has a significant amount of investment in asset value (line 11-40). In this case, the company should analyze the reasons for the termination of the rental activity, carry out work to restore it. Also, at the decision of management, the assets can be sold.

Rubric "Question - answer"

Question number 1. On the balance sheet of JSC "Kontur" there are receivables in the amount of 12.380 rubles. - the debt of JSC "Kvant" for payment for the goods. According to the contract, the payment term for the goods comes in 8 months after shipment. At the same time, the counterparty (JSC Kvant) has no signs of reliability and solvency. Is the amount of accounts receivable from Kvant a current asset?

When determining the liquidity of an asset, one should take into account not only the return criteria provided for by the contract (in this case, 8 months), but also other objective factors. If, according to Kontur, the debtor does not repay the debt within 12 months, then the asset can be transferred to non-current assets. The basis for the transfer is the protocol of the decision of the board of "Kontur".

Question number 2. The Progress Research Bureau conducts development on its own in order to create a useful model of equipment. As a result of the research, Progress received a patent for the model. Development costs amounted to 704.880 rubles. How should transactions with a non-current asset be reflected in Progress accounting?

The development costs of Progress must be accumulated on account 23 (Dt 23 Kt 70, 69, 10, 02 ...). Read also the article: → "". Upon completion of the work, the amount of expenses should be transferred to the investment account (Dt 08.8 Kt 23). After obtaining a patent and state registration, the rights to the model are reflected in the intangible assets (Dt 04 Kt 08.8).

Question number 3. JSC "Kurs" is the owner of an investment asset - an object of work in progress. Can the object be classified as non-current assets?

"Rate" may consider the object as a non-current asset if the following conditions are met:

• the completion of the production of the object is carried out no earlier than in 12 months;
• at the end of production, the object will have all the signs of a non-current asset.

At the end of the analyzed period, the property structure is characterized by a relatively high share of non-current assets, which practically did not change, amounting to 66.24% at the beginning and 69.75% at the end of the analyzed period.

Non-current assets of the Enterprise for the analyzed period increased from 95,461 to 104,578 thousand rubles.

The increase in non-current assets occurred due to an increase in the following components:

Intangible assets for 1,414 thousand rubles. (from 2,165 to 3,579 thousand rubles) or by 65.31%, which indirectly characterizes the chosen strategy of the Enterprise as innovative;

Fixed assets for 5,943 thousand rubles. (from 65,356 to 71,299 thousand rubles) or 9.09%;

Long-term financial investments for 2,124 thousand rubles. (from 8,381 to 10,505 thousand rubles) or 25.34%. This indicates the investment orientation of the Company's investments and the diversion of funds from core activities, which, in some cases, may adversely affect the results of the Company's financial and economic activities (it is necessary to additionally analyze the feasibility and effectiveness of financial investments) while reducing:

Other non-current assets for 364 thousand rubles. (from 19,559 to 19,195 thousand rubles) or 1.86%.

The structure of non-current assets for the analyzed period remained quite stable. At the same time, in the analyzed period, the main part of non-current assets (Fig. 4) invariably accounted for fixed assets (68.18%).

Figure 4 - Dynamics of the structure of non-current assets

During the analyzed period, in the structure of non-current assets, the share of intangible assets tended to increase (from 2.27% to 3.42%), the share of fixed assets tended to decrease (from 68.46% to 68.18%), the share of long-term financial investments tended to increase (from 8.78% to 10.05%), the share of other non-current assets tended to decrease (from 20.49% to 18.35%). In the analyzed period, the Company did not use investments in non-current assets in its financial and economic activities.

The cost of non-current assets increased by 9117.00 thousand rubles. or 9.55%. The share of non-current assets in the value of the company's property for the analyzed period increased by 3.51% (from 66.24% to 69.75%).

current assets.

At the end of the analyzed period, the property structure is characterized by a relatively low share of current assets, which practically did not change, amounting to 33.76% at the beginning and 30.25% at the end of the analyzed period.

Current assets of the Enterprise for the analyzed period decreased from 48,660 to 45,364 thousand rubles. The decrease in current assets was due to a decrease in the following components:

accounts receivable;

short-term financial investments;

cash with a simultaneous increase in inventories;

other current assets.

The structure of current assets (Figure 5) has changed significantly over the analyzed period.

Figure 5 - Dynamics of the structure of current assets

Current assets decreased over the analyzed period by 3296.00 thousand rubles. or by 6.77%. The share of current assets in the value of the company's assets decreased by 3.51% (from 33.76% to 30.25%).

At the same time, in the analyzed period, the bulk of current assets invariably accounted for stocks (54.77%). The share of reserves in current assets increased from 41.10% to 54.77%. The cost of inventories for the analyzed period increased by 4,849 thousand rubles. (from 19,997 to 24,846), which is a negative change, as the duration of inventory turnover increased.

The share of receivables (short-term and long-term) in current assets decreased from 39.53% to 35.08%. The structure of accounts receivable is shown in Figure 6.

Figure 6 - Dynamics of the structure of receivables

Accounts receivable for the analyzed period decreased by 3325.00 thousand rubles. (from 19,237 to 15,912), which is a positive change and may indicate an improvement in the situation with payment for the Company's products and the choice of an appropriate sales policy and provision of consumer credit to customers.

At the end of the analyzed period, accounts receivable included only debts of short-term (with a maturity within 12 months) debtors (Fig. 7).

Figure 7 - Dynamics of the structure of short-term receivables

Short-term accounts receivable for the analyzed period decreased by 3325.00 thousand rubles. or by 17.28%. The debt of buyers and customers has not changed.

A positive aspect is the reduction in the duration of the turnover of short-term receivables by 2 days. compared to the beginning of the period.

Comparison of the amounts of short-term receivables and payables shows that the Company had a passive balance of debt during the analyzed period, that is, accounts payable exceeded accounts receivable by 9,690 thousand rubles. at the beginning and by 6,758 thousand rubles. at the end of the analyzed period. Thus, the Enterprise financed the payment deferrals of its debtors at the expense of non-payments to creditors (that is, the budget, extra-budgetary funds, etc.).

The value of net working capital (that is, the difference between inventories, short-term receivables, cash, short-term financial investments and all short-term liabilities (accounts payable and financial debt) shows that at the beginning of the analyzed period the Company had its own working capital. At the end of the analyzed period, Enterprises did not have their own working capital.

The amount of cash in the analyzed period tended to decrease from 6,766 thousand rubles. up to 2,993 thousand rubles

At the end of the analyzed period, the Company spends the largest amounts of money on the following needs:

Cash used to pay for goods, services, raw materials and other valuables (71.07% of total outflows);

Cash allocated for wages (12.29% of total outflows);

Acquisition of fixed assets and intangible assets (7.71% of total outflows).

The Company finances its expenses at the end of the analyzed period from the following main sources:

Funds received from buyers, customers (86.45% of total inflows);

Proceeds from loans and credits provided by other organizations (10.49% of total inflows);

Proceeds from the sale of securities and other financial investments (1.06% of total inflows).

The enterprise for the analyzed period reduced the amount of short-term financial investments from 1,379 thousand rubles. to 69 thousand rubles, while their share in the structure of current assets decreased from 2.83% to 0.15%.

The structure of balance sheet liabilities is presented in table 3.

Table 3 - STRUCTURE OF LIABILITIES

Figure 8 shows the structure of balance sheet liabilities in dynamics.

Figure 8 - Dynamics of the structure of liabilities

The company's debt to the budget has not changed.

The main source of property formation (Fig. 9) Enterprises in the analyzed period are borrowed funds, the share of which in the balance increased from 77.29% to 82.66%.

Figure 9 - Dynamics of sources of property formation

During the analyzed period, the total value of the property of the enterprise increased by 5821.00 thousand rubles. or by 4.04%.

Own capital (actual, net of losses and debts of the founders) at the beginning of the analyzed period amounted to 32,733 thousand rubles, and at the end of the period it was equal to 26,009 thousand rubles. During the analyzed period, the value of own capital (actual) decreased by 6,724 thousand rubles. or by 20.54% while increasing the ratio of debt and equity capital by 1.36. Thus, the financial stability of the Company has decreased.

Own capital of the Enterprise for the analyzed period decreased. The decrease in equity capital was due to a decrease in additional capital by 766 thousand rubles. (from 44,308 to 43,542 thousand rubles) or 1.73% of reserves, funds and retained earnings (actual) by 6,133 thousand rubles. (from -23,022 to -29,155 thousand rubles) or 26.64% with a simultaneous increase in deferred income by 175 thousand rubles. (from 26 to 201 thousand rubles) or 673.08%.

The structure of equity capital is shown in Figure 10.

Figure 10 - Dynamics of the equity capital structure

In the analyzed period, the following indicators remained at the same level: authorized capital (11,421 thousand rubles).

In general, the negative value of reserves, funds and retained earnings (actual) at the end of the period indicates the presence of problems in the activities of the Enterprise (in the event that it did not use its own funds for financing). It is necessary to further analyze the direction of spending the Company's own funds.

During the analyzed period in the structure of equity capital, the share of additional capital tended to increase (from 135.36% to 167.41%), the share of reserves, funds and retained earnings tended to decrease (from -70.33% to -112.10 %).

By the end of the analyzed period, the enterprise accumulated losses (according to the balance sheet) in the amount of 29,726 thousand rubles. At the same time, the share of losses in the balance sheet increased from 16.30% to 19.82%. During the analyzed period, the enterprise continued to "eat up" its own assets. The structure of the Company's liabilities is shown in Figure 11.

Figure 11 - Commitment structure

The company's liabilities increased by 12545.00 thousand rubles. or by 11.26%.

In the structure of borrowed capital, long-term liabilities for the analyzed period remained practically unchanged, remaining at the level of 63.21% and amounted to 76,125 thousand rubles.

Long-term loans and borrowings (financial liabilities) for the analyzed period remained virtually unchanged and amounted to 65,627 thousand rubles. By the end of the analyzed period, long-term liabilities (Chart 12) were represented by 83.77% financial and 16.23% commercial liabilities.

Figure 12 - Dynamics of the structure of long-term liabilities

Long-term liabilities of the enterprise increased by 2217.00 thousand rubles. or 2.91%.

Short-term liabilities (Fig. 13) for the analyzed period increased by 10,328 thousand rubles. or by 29.29%. Their share in the structure of borrowed capital increased from 31.66% to 36.79%.

Figure 13 - Dynamics of the structure of short-term liabilities

By the end of the analyzed period, short-term liabilities were represented by 42.85% financial and 57.15% commercial liabilities. Short-term loans and borrowings (financial liabilities) for the analyzed period increased from 3,960 thousand rubles. up to 19,537 thousand rubles. or 393.36%. Accumulation of short-term financial debt is a negative moment in the activity of the Company.

Accounts payable (Fig. 14) for the analyzed period decreased by 6,257 thousand rubles. or by 21.63% (from 28,927 to 22,670 thousand rubles).

Figure 14 - Dynamics of the structure of accounts payable

At the same time, the debt to suppliers has not changed.

In the analyzed period, the Enterprise had no debt to the budget, to suppliers and contractors, to the personnel of the organization, to the state. off-budget funds, bills payable, to subsidiaries and affiliates, advances received, to other creditors. The share of debt to the budget in accounts payable is shown in Figure 15.

Figure 15 - The share of debt to the budget in accounts payable

The share of the enterprise's debt to the budget in short-term accounts payable did not change and amounted to 0.0%.

The performance of the Enterprise is shown in table 4.

Table 4 - PERFORMANCE PERFORMANCE

(averaged values)

It is necessary to pay attention to the fact that the Company has serious problems, because, unlike the beginning of the analyzed period, which ended with a profit of 211 thousand rubles, by the end of the analyzed period, the Company had losses that amounted to 6,899 thousand rubles. Accordingly, most of the profitability indicators at the end of the period were negative.

Return on equity (actual) of the Enterprise (which determines the effectiveness of investments of the owners' funds) changed from 0.640% to -23.490%.

Attention! The value of return on equity (actual) has a negative value at the end of the analyzed period.

A necessary clarification to the analysis of the ratio of net profit and equity is the assessment of the ratio of net profit and the total value of assets, that is, the return on assets. For the analyzed period, return on assets in terms of net profit, which reflects the ability of the Company to make a profit based on the property at its disposal, at the end of the period was negative and varied from 0.150% to -4.690%. The structure of return on capital of the Enterprise is shown in Figure 16.

Figure 16 - Dynamics of return on equity

The value of the return on assets in terms of net profit at the end of the analyzed period indicates a very low efficiency of the use of property. The level of return on assets in terms of net profit in the amount of -4.690% at the end of the analyzed period is ensured by the high turnover of assets (Fig. 17), which amounted to 1.240 turnover per year at the end of the period, with a low (-3.780%) profitability of all operations (in terms of net profit).

Figure 17 - Dynamics of asset turnover

In general, the dynamics of asset turnover, which shows the speed with which the full cycle of production and circulation is completed, and also reflects the level of business activity of the Enterprise, is negative (during the analyzed period, there is a decrease in the value of the indicator from 1,360 to 1,240 turnover per year).

The negative impact of falling asset turnover lies not only in the fact that the rate of return on assets is decreasing, but also in the fact that the Company needs to find additional financial resources to maintain assets that do not bring proper returns.

With a negative level of return on assets at the end of the analyzed period, their high turnover is a negative factor, as it accelerates the growth of losses.

Comparison of the dynamics of the profitability of all operations (Fig. 18) and asset turnover shows a decrease in these indicators over the analyzed period, which indicates negative changes in the financial condition of the Enterprise.

Figure 18 - Dynamics of profitability of all types of activities

Evaluation of the effectiveness of the management of the main activity of the Enterprise in terms of profit is given by the profitability indicator, calculated on the basis of the results of the main activity. Profitability of production assets (showing how much profit each ruble invested in the production assets of the Company brings) at the beginning of the analyzed period was 2.580%, and at the end of the period it was -3.190%. This value of the profitability indicator consists of the profitability of sales (main activity), which at the end of the analyzed period amounted to -2%, and the turnover of production assets, equal to 1.596 turnover per year.

Simultaneous decrease in profitability of sales and turnover of production assets is a "diagnosis" of the presence of problems associated with the sale of products and the work of the marketing department.

The profitability of all operations (in terms of profit before taxation) of the Enterprise at the end of the analyzed period amounted to -4.370% and was 2.370 points lower than the profitability of sales (main activity). Thus, other activities exacerbate the unprofitability of the Company.

The ratio of net profit and sales proceeds, that is, the profitability of sales in terms of net profit, reflects the part of the proceeds that remains at the disposal of the Enterprise from each ruble of sold products. The value of the indicator in the analyzed period was negative and amounted to -3.94%, which reflects the need to expand borrowings to finance the working capital of the Enterprise. It is necessary to check whether the losses are temporary, that is, whether they are due to expenses of the Enterprise, which assume a significant increase in the profitability of sales in the future. This ratio is considered in combination with indicators such as sales and net profit per employee, sales per unit area, etc. To do this, you need to further analyze the costing of the Enterprise.

The duration of the turnover of inventories and other current assets at the end of the period is 49 days, short-term receivables 36 days, and accounts payable 84 days. Thus, the duration of the turnover of net industrial working capital (the duration of the inventory turnover plus the duration of the turnover of short-term receivables minus the duration of the turnover of accounts payable) is 1 day. and -5 days. at the beginning of the analyzed period.

It should be noted that the average value of the duration of the turnover of net industrial working capital for the analyzed period is close to zero, therefore, the Company needs, first of all, to assess the size of stocks and solve the problem of collecting receivables.

If we take into account that the net production working capital of the Enterprise at the end of the analyzed period is 3,533 thousand rubles, then reducing the duration of its turnover by one day will release funds in the amount of an average daily proceeds of 486,533 thousand rubles. Reducing the duration of the turnover can be achieved by reducing the volume of purchased raw materials, their shelf life, reducing the duration of the production cycle, reducing delays in payments to buyers, and increasing the duration and volume of commercial credit to suppliers.

The financial stability of the Enterprise is shown in table 5.

Table 5 - FINANCIAL SUSTAINABILITY

(averaged values)

An analysis of the financial stability of the Enterprise allows us to speak of an insignificant margin of safety due to the low level of equity (actual), which at the end of the analyzed period amounted to 0.174 (with a recommended value of at least 0.600).

Thus, by the end of the analyzed period, the Company had limited opportunities to attract additional borrowed funds without the risk of loss of financial stability. The financial stability of the Enterprise in dynamics is shown in Figure 19.

Figure 19 - Dynamics of financial stability

The decrease in the level of own capital (actual) for the analyzed period contributed to the decrease in the financial stability of the Company.

The coverage ratio of non-current assets with own capital (actual) at the end of the period amounted to 0.249 (0.343 at the beginning) (with a value of at least 1 recommended to comply with the financial stability requirement). At the same time, the coverage ratio of non-current assets not only with own, but also with long-term borrowed capital at the end of the period was 0.998 (at the beginning of 1.140). Therefore, at the end of the analyzed period, only a part of long-term assets is financed from long-term sources, which can ensure a relatively low level of solvency Enterprises in the long run. At the same time, the dynamics of this indicator can be assessed as negative.

The equity ratio at the end of the period was -1.736, which is worse than the established normative value (0.10). The ratio of borrowed and equity capital (actual) at the beginning of the analyzed period was 3.403, at the end of the period 4.765.

Quick liquidity ratio (reflecting the share of current liabilities covered by cash and sale of short-term securities) at the end of the period amounted to 0.067, which is 0.164 points lower than its value at the beginning of the period (0.231) at the recommended value.

The intermediate coverage ratio (reflecting the share of current liabilities covered by current assets minus inventories) at the end of the period was 0.416, which is 0.360 points lower than its value at the beginning of the period (0.776) at the recommended value.

The coverage ratio of short-term debt by current assets at the end of the period was 0.995, which is 0.385 points lower than its value at the beginning of the period (1.380), with a recommended value of 1.00 to 2.00. The dynamics of the liquidity of the Enterprise is shown in Figure 20.

Figure 20 - Dynamics of liquidity

Thus, during the analyzed period, the Company became unable to pay off current liabilities at the expense of inventories, finished products, cash, receivables and other current assets.

The Beaver coefficient, equal to the ratio of cash inflow to the total amount of debt, at the end of the analyzed period amounted to -0.059, at the beginning - 0.002. According to international standards, the recommended value of this indicator is in the range of 0.170 - 0.400. The obtained value of the indicator makes it possible to attribute the Enterprise to the high group of "risk of loss of solvency", i.e. the level of debt coverage by the amount of net profit and depreciation at the Enterprise is low.

The interval of self-financing (or solvency) of the Enterprise at the end of the period was 47 days. (at the beginning of the period 55 days), which indicates a low level of reserves for the Company to finance its costs (without depreciation) as part of the cost and other costs at the expense of available cash, short-term financial investments and proceeds from debtors. In international practice, it is considered normal if this indicator exceeds 360 days.

The solvency of the Enterprise is shown in Figure 21.

Figure 21 - Dynamics of solvency

A comprehensive assessment of the financial stability of the Enterprise is shown in table 6.

Table 6 - COMPREHENSIVE ASSESSMENT OF THE FINANCIAL CONDITION

as of 01.01.2014

(cumulative total)

Rice. 3.9. Structure of current assets, %

Thus, the analysis of the balance sheet asset showed that during the year there was an increase in the balance sheet asset (property of the enterprise) by 7.39%. The growth rates of current assets exceeded the growth rates of non-current assets. The structure of current assets changed slightly: the share of receivables increased by 1.47%, the share of cash by 0.14%, the share of inventories - by 0.96%. There are no long-term receivables, the growth rates of receivables and payables are practically the same.

Non-current and current assets, their value.

As already mentioned, according to the nature of participation in the production process, assets are divided into non-current and current (current). They play a leading role in asset valuation.

Non-current assets include:

Intangible assets;

fixed assets;

Construction in progress;

Profitable investments in material values;

Long-term financial investments;

Other intangible assets.

Ensuring the efficient use of non-current assets requires constant management, which is carried out in various forms. The largest part in the composition of non-current assets is, as a rule, operating assets that go through the following main stages of circulation:

1. Transferring the value of non-current assets to finished products;

2. Accumulation of the depreciation amount by forming an amortization fund;

3. Funding from the sinking fund for the restoration or acquisition of non-current operating assets and other sources.

The operating non-current asset management system includes the following sequence of activities carried out by the organization's management:

Analysis of the current state of operating non-current assets, including the study of the dynamics of their total volume and composition, degree of suitability, intensity of renewal and efficiency of use;

Optimization of the composition and structure of operating non-current assets to identify reserves for increasing their production use in terms of time and capacity in the context of their individual types;

Creation of conditions that ensure the timely renewal of operating non-current assets;

Improving the efficiency of using the organization's operating non-current assets, reducing their volume and, in accordance with this, reducing the amount of financing for their reproduction;

Optimization of the structure of sources of financing of operating non-current assets;

It is important in the implementation of the management system for non-current assets to ensure their timely and effective renewal, for which it is necessary to determine the frequency of renewal, which depends on the duration of their physical and obsolescence.

The organization in its practice uses various forms of updating operating non-current assets, while in the process of simple reproduction they apply: current repairs, major repairs, the acquisition of new types of assets, and in the process of expanded reproduction - reconstruction, modernization, etc. The choice of a specific form of renewal should be carried out according to the criterion of efficiency, when the amount of future profit generated as a result of the operation of the asset after the renewal should exceed its liquid value.

The process of financing the renewal of certain types of operating non-current assets involves the choice of options for their formation, i.e. acquisition of ownership or conclusion of a lease (leasing) agreement. When solving this problem, as a rule, they proceed from an analysis of the advantages and disadvantages of one or another form of attracting assets.

The main criterion for making a managerial decision from the perspective of financial management is the comparison of cash flows for various forms of asset renewal financing. At the same time, the cost of acquiring at the expense of own funds, at the expense of a bank loan and using a leasing agreement is compared.

Circulating production assets include production stocks (raw materials, materials, fuel, spare parts, low-value and wearing items), work in progress, deferred expenses.

The main purpose of working capital of production (inventory and work in progress) is to ensure the continuity and rhythm of the production process.

Finished products, as well as cash on hand, in the current account, receivables and funds in settlements constitute working capital circulation. The need for these revolving funds is determined by the continuity of the process of circulation of funds of production associations (enterprises).

The essence of working capital is determined by their economic role, the need to ensure the reproduction process, which includes both the production process and the circulation process. Unlike fixed assets, which repeatedly participate in the production process, working capital operates in only one production cycle and, regardless of the method of production consumption, fully transfers its value to the finished product.

The efficiency of the enterprise largely depends on its availability of working capital. The sources of their formation largely determine the efficiency of the use of working capital. Establishing the optimal ratio between own and borrowed funds, due to the specific features of the circulation of funds in a particular business entity, is an important task for the company.

The organization of working capital is an important element in the asset management process and includes:

o determination of the composition and structure of working capital;

o establishing the company's need for working capital and maintaining working capital in an amount that optimizes the management of current activities;

o determination of the ratio between sources of coverage sufficient to ensure long-term production and efficient financial activities of the enterprise

o determination of sources of formation of working capital;

o responsibility for the safety and efficient use of working capital.

Fixed assets.

The share of non-current assets increased from 14% to 47%. What does it say? What can be said about the company's strategy? What risks does it have in connection with the increase in the share of non-current assets.?

Hope

You didn't provide complete information. Increased share in / about. assets, well, increased.
It is necessary to analyze and calculate liquidity knowing: the total value of assets; the amount of assets by the degree of liquidity;
the size of liability groups according to the maturity of obligations.
Liquidity (from Latin liquidus - liquid, flowing), mobility, mobility of assets of enterprises, firms, providing the actual opportunity (ability) to uninterruptedly pay all their obligations and legal monetary claims placed on them on time.
All assets of the company, depending on the degree of liquidity, i.e., the rate of conversion into cash, can be divided into several groups.
1) The most liquid assets (A1) - amounts for all items of cash that can be used to perform current settlements immediately. This group also includes short-term financial investments.
2) Marketable assets (A2) - assets that require a certain time to turn into cash. This group can include accounts receivable (payments for which are expected within 12 months after the reporting date), other current assets.
3) Slowly realizable assets (A3) - the least liquid assets are inventories, receivables (payments for which are expected more than 12 months after the reporting date), value added tax on acquired valuables, while the item "Deferred expenses" does not included in this group.
4) Hard-to-sell assets (A4) - assets that are intended for use in business activities for a relatively long period of time. This group includes the articles of section I of the asset balance "Non-current assets".
Liabilities of the balance according to the degree of increase in the terms of repayment of obligations are grouped as follows.
1) The most urgent liabilities (P1) - accounts payable, dividend payments, other short-term liabilities, as well as loans not repaid on time (according to the appendices to the balance sheet).
2) Short-term liabilities (P2) - short-term borrowed loans from banks and other loans payable within 12 months after the reporting date. When determining the first and second groups of liabilities, in order to obtain reliable results, it is necessary to know the time for the fulfillment of all short-term obligations. In practice, this is only possible for internal analytics. With external analysis, due to limited information, this problem becomes much more complicated and is usually solved on the basis of the previous experience of the analyst performing the analysis.
3) Long-term liabilities (P3) - long-term loans and other long-term liabilities - items of section IV of the balance sheet "Long-term liabilities".
4) Permanent liabilities (P4) - articles of section III of the balance sheet "Capital and reserves" and individual articles of section V of the balance sheet that were not included in the previous groups: "Deferred income" and "Reserves for future expenses". To maintain the balance of assets and liabilities, the total of this group should be reduced by the amount under the items “Deferred expenses” and “Losses”.
To determine the liquidity of the balance sheet, the totals for each group of assets and liabilities should be compared.
The balance is considered absolutely liquid if the following conditions are met:
A1 >> P1
A2 >> W2
A3 >> W3
A4

Polina Buslakova

Usually, when you increase the share of non-current assets, you naturally decrease the share of current assets.
We went through this a few years ago - a complete modernization of fixed assets was carried out. Otherwise, we were not competitive.
Liquidity for three years was on the verge of a minimum.
But now we are reaping the benefits - no investment, but only returns.
Our risks were - we accumulated a creditor, but got out.
Everything that is done is for the best.
Or maybe here the share increased not due to an increase in non-current assets, but due to a decrease in current assets (for example, the withdrawal of liquid assets from the company). Then it's probably over...

If the company does not have non-current assets, is it good or bad and why?

Dina

Of course this is not very good. If an enterprise does not have, for example, intangible assets, then this means that the enterprise is not engaged in innovation activities. On the other hand, current assets should be greater than non-current assets, and it turns out that if there are no non-current assets, this is a positive trend in the enterprise.

Andrey Bobrov

Let's say a company is engaged in wholesale trade, rents an office and a warehouse, from equipment - furniture and computers, which now do not fall under fixed assets (cheaper than 40,000), and if they did before, they were depreciated a long time ago - the residual value is 0.
Well, what are non-current assets? Some goods, money in the account and a supply of paper, a couple of boxes ...
But if you have construction or transportation or industrial production - there is expensive equipment (machines, industrial buildings) - there should be non-current assets, and it will be suspicious if they are not ...
Although it can be leasing ... but I don't care about him

Any enterprise or organization has assets, by state, structure, the volume of which can be concluded not only about the stability of the business, but also about the market value of the enterprise or firm. The assets of the object of entrepreneurship (enterprises, organizations, etc.) are, in simple words, the property of the enterprise. Property in this case is interpreted broadly as financial, tangible and intangible values. The totality of assets is the property of the enterprise, the use of which generates income. Net assets or equity is the difference between a business's assets and its financial liabilities. The size of assets significantly affects the taxable base.

If an enterprise is on a simplified taxation system or pays tax on imputed income, then the value of assets does not affect the taxable base. However, it is advisable to keep records of assets in accounting in these cases, since when going beyond these taxation systems (annual income, number of employees, etc.), one has to switch to a general taxation system. Assets are broadly divided into current and non-current assets.

current assets- these are those that participate in the production cycle of less than one year. These assets transfer their value to finished products in full during the year. Usually these are raw materials, materials, cash on hand and on the current account, as well as short-term financial investments. Fixed assets- these are assets that are used in the activities of the enterprise for more than a year. They transfer their value to the finished product piece by piece. The answer to the question of what non-current assets are is important in determining the tax base. The most complete non-current assets of the enterprise are reflected in accounting documents. According to accounting, non-current assets are four categories of assets.

1. Tangible non-current assets (fixed assets).
2. Financial.
3. Intangible.
4. Other noncurrent assets.

Let's consider everything in order. Tangible non-current assets are:

• land;
• buildings (capital and non-capital) and structures;
• machines, machine tools, equipment, sophisticated office equipment, instrumentation and vehicles;
• furniture, office equipment, tools with a service life of more than a year;
• capital construction in progress;
• animals and perennials;
• commercial inventory (counters, cash registers, showcase refrigerators, etc.;
• equipment purchased but not installed, as well as spare parts for it;
• property leased or rented;
• library funds;
• other tangible assets.

Tangible non-current assets are recognized as such if their value can be determined.

In addition, such assets have a cost constraint. Their cost should be more than 10,000 rubles. Otherwise, low-value tangible fixed assets are classified as "low-value". Such funds, despite the fact that they serve for more than a year, for example, a telephone set, are accounted for as working capital in the form of inventories. Land plots are accounted for at their purchase price or cadastral value. Buildings and structures - at the price of their acquisition or construction.

Capital construction in progress, as well as equipment that is not installed, is accounted for at the purchase price of materials / equipment and the costs of their delivery, construction and design. Furniture, tools and trade equipment are taken into account at the purchase price. Accounting for the cost of animals and perennial plantations has its own characteristics and is discussed in detail in specialized sources. For example, you can recommend cxychet.ru or consultant.ru. Since fixed assets gradually transfer their value to products, each year their value decreases by the amount of depreciation. The depreciation period, and, consequently, the amount that is attributed to the cost and by which the cost of objects is reduced, is a standard value regulated by law.

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The residual value of an object is the difference between its original cost and accrued depreciation over the period of operation. Construction in progress and uninstalled equipment are not depreciated. Other non-current assets include the cost of land reclamation, major repairs, which change the cost of objects. Non-current assets and what relates to them can be acquired by the enterprise independently, donated, exchanged or created at the expense of own / borrowed funds or authorized capital. Sometimes fixed assets are a contribution to the authorized capital of a newly created joint-stock company. In this case, such assets are reflected in the constituent documents.

Financial assets- this is, first of all, long-term financial investments, which can be of several types.

1. Bonds with a maturity of more than one year, bills and certificates of deposit. The purpose of such long-term investments is the use of free cash in order to obtain profit in the form of interest on such securities.
2. Purchase of shares in closed / open joint-stock companies and shares in limited liability companies. The purpose of such acquisitions is to establish control over the relevant economic entities and receive profit in the form of dividends. In some cases, such acquisitions are aimed at establishing control over the supply of raw materials or creating their own marketing system.
3. Providing loans to organizations/enterprises. Such loans, in addition to the purpose of generating income, may pursue, for example, the expansion of the production of raw materials at the supplier's enterprise.
4. Investments to improve the financial condition of subsidiaries.
5. Other financial investments with a duration of more than one year.

Accounts receivable with a maturity of several years can also be classified as non-current assets.

Intangible assets represent a large group of objects, the evaluation of which sometimes causes difficulties. This part of the company's balance sheet requires detailed consideration. Intangible assets include:

• software products and databases (if these objects are not in-house development, they are accounted for at the acquisition price);
• rights to use subsoil and land plots;
• licenses for the right to conduct a particular type of activity;
• patents, know-how, industrial designs and trademarks.

The results of scientific research and surveys are not intangible assets, spending on improving training, advertising and creating industrial designs and trademarks. These expenses are expensed in the period in which they are incurred. Difficulties in registering intangible assets lie in determining their value. Often the tax authorities have questions about the value of acquired patents and know-how.

It should be borne in mind that the validity of patents (and, therefore, the term of their protection) is usually twenty years. The "older" the patent, the lower its value. But, on the other hand, if an object protected by a patent is sufficiently “promoted” by the time of acquisition, the higher its cost. The latter option is often found in the case of pharmaceuticals. Unlike patents, know-how (from English know how - I know how, secret of production) do not expire and are often acquired along with a patent (license).

Know-how belongs to the most protected objects of intellectual property.

This is the most common object of industrial espionage. Know-how is often more reliable than intellectual property laws protect patents containing difficult-to-control technologies or product formulations. Indeed, if you invented a new technology for the production of polyethylene and received a patent for it, then the polyethylene produced by the new technology is no different from that obtained by the old method. Your competitors can simply use the description of the invention, and you will not be able to control it. But if the patent contains know-how (which is not published and is not freely available), then the competitor will not be able to reproduce the patent. Therefore, the presence of know-how significantly increases the value of a patent.

current assets- these are assets that serve or are repaid within 12 months, or during the normal operating cycle of the organization (if it is more than 1 year). Many current assets are used simultaneously when they are released into production (for example, raw materials and supplies). Current assets are one of two groups of assets of the organization (the second - non-current assets). Accordingly, one of the two sections of the Asset of the balance sheet is called "Current Assets". Current assets are also called current assets.

Composition of current assets

In accordance with the form of the balance sheet, the following current assets are distinguished:

• reserves;
• VAT on purchased assets;
• (excluding cash equivalents);
• cash and;
• other assets that meet the characteristics of current assets.

Accounts receivable and financial investments are classified as current assets only if their maturity is less than 1 year, or the period exceeds 1 year, but the organization is confident in the high liquidity of these assets, the ability to quickly and without loss convert them into cash (i.e. e. to sell).

Current assets, in principle, have a higher degree of liquidity than non-current assets. And money, as part of current assets, has absolute liquidity.

Analysis of current assets

A sufficient amount of current assets is necessary for the smooth operation of the enterprise, whether it be materials used in the production process, or cash for settlements with suppliers. Therefore, the analysis of the liquidity of assets is central to the financial analysis of enterprises. In the course of the analysis, they study the sufficiency of liquid assets for timely settlements with suppliers and contractors for current debt. To do this, current assets in general and their groups in terms of liquidity are compared with the total value of the organization's short-term liabilities on the same date (calculated, including automatically using).

A high proportion of current assets is typical for material-intensive industries and trade organizations. The higher the share of current assets (and, accordingly, the lower the share of non-current assets), the more the organization can attract short-term financing (short-term loans, deferred payments to suppliers, etc.) without compromising its financial stability.

Still have questions about accounting and taxes? Ask them on the accounting forum.

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