Fixed assets of the enterprise - this is a specific mapping of means of labor, expressed in value terms. The most important feature, which is rightfully considered decisive, is the transfer of the value of public funds to the output.
PF assessment methodology
Such an action can be carried out in several ways: gradually over a certain number of production cycles or parts in the course of equipment wear. The economic essence of the concept under consideration is the constant movement of financial resources, the form of which changes in a cycle: monetary-natural-commodity-monetary. Thus, we can say that the fixed assets of the enterprise are a kind of means of labor that take part in many production cycles. Such actions allow under normal economic conditions to contribute to the full recovery of the fixed assets, providing, in turn, the possibility of constant updating of the equipment park. Based on the foregoing, it can be concluded that a simple replenishment of the depreciation fund leads to the formation of a new system of implements of equal cost to retirees. However, to improve the technological process, additional capital investments are necessary, which can be attracted from the profit received, contributions of investors, loans and credits, as well as the issue of securities.
Indicators and patterns
The cost of fixed assets of an enterprise is determined by calculating various ratios. Let us consider in more detail some of them. For example, the growth indicator characterizes the increase in the value of fixed capital for the period of interest. The update rate, in turn, represents the degree of renewal of the production apparatus. The characteristic of fixed assets of the enterprise implies that both presented values are interconnected. Therefore, the higher the growth rate, the faster the rate of update. Consider also the rate of disposal of funds, which has a significant impact on the described relationship.
Composition and classification
At present, the fixed assets of the enterprise are a rather complex economic system. It allows for accounting and planning of resource allocation. At the same time, the means of labor that are part of the above definition can be divided by type and field of activity. Such events allow the formation of a generally accepted form of financial statements. In its structure, the fixed assets of the enterprise is a complex system that can be classified according to the following criteria. For example, by sectors of the economy, by the timing of production, as well as by industry. Of course, structuring does not end there, each of the categories presented has its own branching system of groups and subgroups. Thus, the result is a complex scheme, reflecting all the processes associated with the term "fixed assets".