There is such a clause in the balance sheet called “Non-current assets”. It includes funds of various economic composition related to less liquid assets, the usefulness of which is manifested over several years. This section identifies several balance groups, that is, intangible assets (intellectual property rights, various patents, trademarks, various kinds of licenses and even the business reputation of organizations). Thus, non-current assets were listed here that do not have a physical basis as such, but, at the same time, are of considerable value.
The next article in the section is “Fixed Assets”. These include land, buildings, cars, equipment and other fixed assets of an enterprise or organization. It reflects precisely the material part, which has become an integral component of human labor. These non-current assets transfer their value to the manufactured goods gradually, over time, as they wear out.
And finally, the third article is “Construction in progress”. This can include all data on the cost of construction, that is, spare equipment, costs for the formation of the main fund and many other capital costs for construction.
Investments in non-current assets that make a profit
This is the residual price of the property, which was purchased to provide it for a fee to various organizations for temporary use, as well as ownership of this property for profit. Long-term financial investments are made mainly in subsidiaries, as well as in dependent companies and a number of other organizations.
In addition, long-term investments also include loans that are provided to organizations. In 2003, the article “Deferred tax assets” was introduced. It contains information in accordance with PBU-18/02. In a “deferred tax asset”, the measure is a derivative of the differences. In accordance with PBU-18/02, clause 8, temporary differences are expenses and income that create accounting profit or loss for one reporting period, and in other reporting periods the tax base for income tax is formed . After receiving the difference, you can understand that the profit from the operation in the reporting period, which was formed on the basis of accounting rules, is less than the profit recognized in tax accounting.
Other noncurrent assets
In this article, you can show investments and funds that are not displayed in the articles of the 1st section of the balance sheet. Account 08 may reflect the costs of “Investments in non-current assets”, which represent acquired intangible assets that were not put into operation at the end of the reporting year.
The second section of the article describes current assets - financial investments in objects and their use within the framework of only one production cycle or for a short calendar time, in particular, no more than one year. Working capital in the work of most enterprises are crucial, because they create the final result of the activities of these enterprises.
One of the following groups of balance sheet items is the “Reserves” group. It collected tangible working capital, which are reflected in the balance sheet by the relevant articles (materials and raw materials, other similar values).
Here, reserves of raw materials for basic and auxiliary materials are recorded. For example, spare parts, purchased semi-finished products, components and other material values that are on the account 10 “Materials”. The management of non-current assets looks something like this.