A financial asset is a fund that reflects financial liabilities and requirements. Moreover, such funds allow the owner to have the right to receive one or more payments from any other institutional unit. The latter in this case acts as a debtor on the basis of an agreement that was previously fixed between them. Thus, a financial asset is a specific form of property relationship. Nevertheless, it provides the owner with the opportunity to make a profit. This concept characterizes all the financial resources available to the enterprise .
Components
Like any other article
of accounting, the financial asset of the enterprise is a rather complex structure, which consists of many components. We list the most significant of them. This concept traditionally includes cash, securities, deposits and deposits, cash on hand, units and insurance policies. In addition, it should be noted that
portfolio investment in shares of the organization in question, as well as packages and investments in other companies, are also referred to as the article in the accounting documentation. Accounting for financial assets should be carried out by specialists who do not forget that in addition to all of the above, the following items are also attributed to such an economic term: monetary gold, technical reserves, foreign investment, borrowings from the currency fund. When analyzing everything said above, we can conclude that all financial transactions related to this category consist of two main groups, which are called "asset for the creditor" and "liabilities for the debtor".
Return on financial assets
Like any other product that can be found in a wide assortment of the modern market, the desired value has a sufficient number of characteristics and factors responsible for the feasibility of various operations associated with it. Nevertheless, there are many distinctive features. The most obvious example is the following: a financial asset is not acquired for direct use. The purpose of their occurrence is considered to be investment in any part of the production process. If as a result of such events the asset contributed to the increase in profit, then it is believed that it was used rationally. In addition, it should be borne in mind that the receipt of income should be regular and directly dependent on the amount of the asset invested to receive it.
Risk, Profitability and Price
These economic indicators are the most important indicators of a financial asset. Risk is the likelihood that an entrepreneur will incur losses as a result of his activities. Profitability - the interest rate calculated for the year, which characterizes the return on invested capital investments. The price, in turn, is an estimate of the asset in cash.