Tangible fixed assets in the balance sheet

All organizations must keep records of assets. Any enterprise has assets that are often used in commercial activities, but remain unchanged. The process of accounting for them sometimes causes a lot of difficulties.

Definition

Non-current tangible assets in the balance sheet is a type of property that is listed by the organization and used by it for the implementation of tasks. Such assets are raised for profit over a long period of time (more than 1 year).

Non-current tangible assets are the monetary value of the property and liabilities of the organization. All of them are fully or partially used in the process of creating products and transfer their value to the finished product.

The materialization coefficient shows the degree of security of the OS organization:

Kma = AI / A, where
AI - the cost of MNA (low-value fixed assets) in the balance sheet;
A - balance sheet total.

The property of the organization is characterized by such parameters:

1. The purpose of the acquisition.
2. Duration of use.
3. The form of assets.

Its volume is affected by:

• external factors: the situation in the country, market conditions, inflation, the level of state regulation of the economy, the legislative framework, the availability of loans;
• internal factors: commodity circulation, supply conditions, organization of work.

NMA:

• Satisfy the enterprise's need for material resources.
• Used for timely settlements with counterparties in full.
• Provide efficient use of funds.

Legislative regulation

At the state level, a number of NAPs have been developed that regulate the asset accounting process. In particular, the Federal Law No. 208 describes in detail the structure of capital (Article 25), the minimum requirements for its size (Article 26), the process of changing the size of capital (Articles 26-30), as well as the protection of creditor rights and the issue of securities (vv. 31-33).

The norms of this Federal Law apply only to OJSC. CJSC and organizations of other forms of ownership have their own accounting rules. In particular, Federal Law No. 402 describes in detail how to account for tangible non-current assets and liabilities of an organization.

Classification

The asset accounting process is reflected in legislation. To correctly interpret the rules, you first need to familiarize yourself with the special terms.

Presented tangible non-current assets in the balance sheet of a small enterprise are used / repaid for more than 12 months, while current assets are traded for less than a year.

Intangible assets also include vehicles, buildings and real estate, which are used to solve production problems: transportation, processing, modernization and storage of residues. The balance sheet reflects tangible non-current assets:

• balance line code 1110 - NMA;
• 1120 - Development;
• 1150 - OS;
• 1160 - material values;
• 1170 - financial investments.

We will consider each of these articles in detail.

Intangible assets

The 1110th line of the balance sheet “tangible non-current assets” is used to reflect trademarks, software and art objects to which the organization has unique rights. The article is filled out according to the account 04 minus account 05. That is, the residual value of assets is recorded in the report. The results of R&D, which are reflected under Article 1120, are recorded at historical cost from the sub-account of the same name.

Search Assets

These non-current tangible assets (line 1130) reflect the cost of work to search for mineral deposits in a particular area. Information is entered from the sub-account of the same name 08, taking into account depreciation (account 05). The same organizations fill out line 1140, which reflects the cost of structures, vehicles used in the work. The indicated values ​​are reflected taking into account depreciation (account 08 - account 02).

OS

Non-current tangible assets (1150) the value of which exceeds 40 thousand rubles. with a period of use of more than 12 months, relate to fixed assets. They are reflected in the balance sheet at the residual value, that is, taking into account depreciation (account 01 - account 02).

Profitable and financial investments (part 1)

Property that is leased or leased is also reflected in the balance sheet at the residual value in line 1160. Financial investments mean deposits in the authorized capital bought by the Central Bank of other organizations. Line 1170 reflects the initial cost of long-term investments (circulation period of more than 12 months). Information is entered from the debit balance of the account. 58, p. 55, p. 73. If the organization creates reserves for the reduction in the value of such assets, then they should also be accounted for at line 1170.

Financial investments also include interest-free loans issued. Their amount is not reflected in line 1170, but as part of receivables (1190). The value of shares repurchased from founders should not be reflected in liabilities, but in liabilities (p. 1320).

Deferred assets

Line 1180 is filled out by organizations that apply PBU 18/02. The debit balance of the account is shown here. 09 as of the reporting date. If tax liabilities are recorded in a collapsed manner, a different procedure is used. Positive difference between sc. 09 and count 77 is reflected in line 1180, and negative in liabilities in line 1420.

Other intangible assets

Line 1190 reflects information on non-material assets. This may be the residual value of R&D, repair costs, capital investments, which were an unfinished enterprise. Each organization develops its own criteria for allocating expenses to this article.

Stocks

On line 1210 of the second section of the balance sheet you need to reflect data on materials, products, raw materials in production. Information about inventory, not expensive office furniture, and office supplies that are not written off at the end of the reporting period is also entered here. Information is entered into the balance sheet from account 10. If the organization uses accounting prices, the difference between the invoice is reflected in the report. 10 and count 16. If the organization additionally creates a reserve for the purchase of stocks, then the credit balance of the account should be deducted from the figure obtained. 14.

Information on work in progress is reflected from the accounts 20-23 and cf. 46. ​​The cost of transport costs for the delivery of goods is usually included in the cost. Then the information is entered into the balance sheet from account 41. Inventories are recorded at actual cost (account 41 - account 42).

VAT

Line 1220 should reflect the balance of the amount of VAT presented for payment. Zero balance allowed. If the organization has not accepted the deduction tax and has not included it in expenses. Such a situation may arise if an error is detected in the received invoices, the product has a long production cycle or is sold at a zero rate. The debit balance of the account is entered in the balance. 19.

Accounts receivable

DZ includes debts:

• for delivered goods to customers;
• for listed advances from suppliers;
• for funds not issued to accountable persons;
• on taxes, etc.

Line 1230 reflects the debit balance of accounts 60, 62, 68, 69. All companies are required to form a reserve for doubtful debts. The amount shown on account 63 should be deducted from the value of the debt.

Financial investments (part 2)

Line 1240 reflects the value of short-term investments in the form of loans, bills , etc. The balance sheet contains data on the residual value of investments, taking into account the accumulated reserves (the difference between account 58 and account 59).

Cash

Line 1250 reflects information on the cash balance at the cash desk, on settlement accounts and on cash equivalents, for example, demand deposits. Deposit accounts are recognized as part of long-term or short-term investments. Funds in foreign currency are converted into rubles at the bank rate at the time of the preparation of the report.

Other OA

Other assets (1260) should include information on property that did not fall into all of the above items. This may be the amount of accrued VAT, revenue not recognized in the current year, unrecorded shortages, etc.

Simplified balance

Small enterprises often use simplified reporting forms when preparing a balance sheet. The abridged form consists of five lines of an asset and six liabilities. It would seem that drawing up a balance will be very simple. In practice, accountants have a number of difficulties.

Structure

The simplified balance sheet contains collapsed information about property and liabilities.

Each line corresponds to a specific code. If you need to specify several indicators in one line, then the code of the article that has the largest specific weight is put.

Example. The LLC in the line "tangible fixed assets" includes fixed assets in the amount of 200 thousand rubles. and capital investments in the amount of 80 thousand rubles. The cost of equipment purchased is greater than the amount invested. Therefore, the balance sheet will feature tangible non-current assets (line 1150) in the amount of 280 thousand rubles. If the company has nothing to write in any line, then it simply does not lead to balance.

Newly created organizations that have not yet been active cannot show an empty balance. The report should at least reflect two operations: the source and the process of formation of the authorized capital (DT75 KT80). Most often, shareholders contribute money (DT51 KT75) or provide OS as a treasure (DT01 KT75). Then the record is made on the corresponding line “tangible fixed assets” in the balance sheet of a small enterprise.

Example

LLC fills a simplified balance sheet at the end of the year. As of December 31, the organization has the following assets:

• purchased OS (account 01) - 100 thousand rubles. - tangible non-current assets (line code 1110);
• funds (account 51) - 10 thousand rubles. - line code 1250;
• customer debt - 15 thousand rubles. - DZ (line code 1260).

Total assets: 125 thousand rubles.

Liabilities:

• UK + Profit: 115 thousand rubles. - line code 1310.
• Accounts payable (payroll, to contractors, to the budget) - 10 thousand rubles. - line code 1330.

Total liabilities: 45 thousand rubles.

Cost estimate

Before selling an organization, its market value is calculated. For this purpose, an indicator such as net assets is determined. The basis is taken from the balance sheet. All liabilities are deducted from the value of the assets. The residual figure is the market value of the organization. If the result of the calculations is a negative value, then the obligations of the organization are several times higher than the value of the property. The calculation does not include the cost of shares that the company bought from the founders, and the value of stocks. The fact of ownership does not guarantee profit.

Non-current fixed assets are usually valued using the excess profit method. It is based on the assumption that part of the profit may exceed the “normal” profitability and be converted into an intangible asset - “goodwill”. Calculation Algorithm:

• Determination of the value of assets and liabilities.
• Calculation of operating profit.
• Determining the OA income rate at which “excess profit” will then be calculated.
• Determination of the intangible asset income rate, which will then be used to calculate goodwill.

Before the calculations, the following items are adjusted:

• Securities are translated at market value.
• Accounts receivable are cleared to identify debts that can still be received.
• It is better to calculate the cost of goods and materials at the real selling price.
• From the upfront costs, you should remove the part that does not go to the buyer, and add the costs that were not included in the assets.
• The cost of furniture and equipment is best determined by the replacement method, that is, taking into account wear and tear, or at a market price.
• From the balance sheet you need to remove the debt issued to secure real estate.

Of the liability items, only promissory notes and deferred tax payments in some situations will need to be adjusted.