Assets are understood as all objects that are on the balance sheet of the enterprise. Their accounting is kept on the accounts of the asset, in the debit column. Therefore, the total value of the property of the enterprise must be judged by the debit of active accounts.
Assets are tangible, financial and intangible. There is their classification in relation to the production process. It distinguishes between current and non-current assets, depending on their participation in the production process.
Current assets - this is property that participates in the production process only once, as a result of which the value of these assets is fully included in the cost of production. This includes: materials, finished products, work performed or goods sold, but not yet paid, cash, etc.
If the property of the enterprise is involved in several production cycles, then it is classified as non-current assets. Their value is distributed in the cost of production in parts and is called depreciation. Non-current assets include the following categories: fixed assets on the balance sheet and intangible assets. Fixed assets that are part of non-current assets include objects that have been used for more than one year or have a high cost - higher than 30 basic units. Intangible assets include the value of licenses, licensing programs used in the activities of the enterprise, permits and other non-current assets.
Changes in the structure of non-current assets give a complete description of the development of the enterprise as a whole. If the analysis shows that non-current assets include the categories of objects related to fixed assets, which tend to increase in value, this indicates the expansion of the main production of the enterprise. With an increase in intangible assets, investments are made in new technologies and enterprise innovation.
This variation in the specific gravity of a certain type of non-current assets shows the strategy of the enterprise as a whole. All tangible investments in non-current assets are due to their purchase and acquisition for long-term use (more than one year). Investments in non-current assets contain: investments in property, which relates to fixed assets of the enterprise, investments in assets related to intangibles, investments in scientific and technical developments.
Non-current assets are recorded in the balance sheet using a number of accounts. With their help, the availability and movement of fixed assets is monitored. This type of account to account for objects that relate to fixed assets, intangible assets, equipment for installation, etc. In addition, depreciation is accrued on all non-current assets, which is also displayed on special accounts of the balance sheet. These include accounts for depreciation of fixed assets and other non-current assets. Each main account has sub-accounts intended for accounting for each category of non-current assets.
Thus, the account is kept of all funds of the enterprise, which non-current assets include. There is an account for accounting investments in assets related to non-current. It is used to control invested funds until the object is taken to balance. Investments made in non-current assets are displayed on account 08 of the balance sheet. For each object acquired by the enterprise, a subaccount is created. On its balance sheet are taken into account the costs associated with the acquisition and the deductible amount received after the registration of the object.
Each company must keep a strict record of all objects that include non-current assets. To do this, use the main accounts necessary to account for their presence and movement in general, and sub-accounts for accounting for each separate object of non-current assets.