The assets of organizations are household assets at the disposal of enterprises in any form. They are managed by the company and obtained as a result of previous events in its economic life. The assets of the organization are those funds that the company will use to make a profit. Let us consider them in detail below.
Signs
The upcoming economic benefits are called the potential opportunity of the funds available to the company, indirectly or directly to ensure the flow of money. There are a number of signs by which resources act as assets of organizations. These are properties that provide features:
- Use separately or in combination with other means in the process of creating products for sale, providing services, performing work.
- Exchange for other resources.
- Use for debt repayment.
- Distributions between participants in a business company.
Classification
There are two categories into which the assets of organizations are divided. These are fixed and current assets. The first are the property values of the company, which repeatedly participate in production activities. The value of the organization’s assets is transferred in parts to the original price of the product. In accounting for such funds include property, the useful life of which is more than 12 months. Moreover, their price is more than 10 thousand rubles. Non-current assets of organizations are:
- Fixed assets. These include structures, buildings, equipment, natural resources, land.
- NMA.
- Construction in progress.
- Profitable capital investments in material assets (under a leasing or rental agreement).
- Long-term assets (loans, investments allocated for a period of more than 12 months).
- Other means.
Specifications
OS include the means of labor that are used in the production process, the provision of services or the performance of work for a period exceeding 1 year. These assets are involved in the organization for a long time. At the same time, they retain their natural form. The value of assets is transferred to products as they become depreciated (in parts).
Intangible assets are also objects of long-term use. However, they do not have a physical basis, but they have a cost estimate and generate income.
Intangible assets include intellectual property, organizational costs, business reputation. Profitable investments are a part of property, premises, structures, equipment and other valuables with material expression. They are provided by the enterprise for temporary operation for a fee. Capital investments are the costs of the company for the construction and installation works, the purchase of equipment, inventory, tools and so on. An organization’s financial assets are the company's investments in securities issued by the state (bonds, for example) or other economic entities. These funds also include loans provided to other firms. Investments can be made for a period of more than a year. In this case, they act as long-term assets. A company can also invest for a short period of time. In such a situation, these funds are treated as short-term assets. All indicated categories are reflected in the balance sheet in the first section.
Current assets
They are called property values of companies involved in economic activity, changing their original material and material form. They are consumed during the 1st production cycle. Their value is also transferred to the original price of the product. However, current assets transfer it at a time.
Composition
Working capital of the enterprise include:
- Accounts receivable.
- Stocks.
- Cash.
- Short-term assets.
- VAT on acquired values, etc.
MPZ include basic and auxiliary materials and raw materials, purchased semi-finished products, containers, spare parts, waste, fuels, household supplies, inventory, animals for fattening and rearing. Cash forms the equity of the organization. They are accumulated in cash at the cash desk, as well as on settlement and other bank accounts. The equity of the organization can be spent on various needs. The structure of settlement funds contains various receivables. It consists of unpaid amounts of buyers, etc. Working capital is reflected in the balance sheet in the second section.
Productivity Efficiency
Information on the allocation of resources is reflected in the asset balance. A separate article is maintained for each category of funds. According to the information reflected, it is possible to determine the changes that the company’s equity has undergone, what proportion of the funds falls on real estate or current assets, and so on. Analysis of indicators for the enterprise is key. First of all, it is necessary to determine the efficiency of use of assets, their degree of influence on the value of the entire business. Along with this, the head of the company must have information about the real price of each tool. Their combined value will allow us to assess the potential of the company, its property complex.
Analysis methods
Studying the structure of assets using the horizontal and vertical valuation method. The latter allows you to identify trends in those articles that positively affect the strengthening of the company's position in the market or vice versa, have a negative impact. Horizontal analysis consists in the formation of tables. In them, the absolute indicators of the balance are supplemented by relative values - the rate of decline / growth. Typically, baseline values for adjacent periods are taken into account. This allows not only to analyze the dynamics of indicators, but also to predict them. Vertical analysis, in turn, is necessary, since relative values to some extent provide smoothing of the negative impact of information processes that can significantly distort the absolute values. Both of these methods complement each other. In this regard, in practice, tables are often built according to which not only the structure, but also the dynamics of individual indicators is characterized.
Conclusion
An organization uses the assets at its disposal to achieve various goals and accomplish many tasks. In particular, resources are used in the manufacture of products, production of works, provision of services aimed at meeting the needs of consumers who are ready to pay for the benefits received. Accordingly, this contributes to the inflow of funds to the enterprise, increasing its solvency. Along with this, assets contribute to the expansion of production, improving the quality of goods. Funds are allocated for the purchase of equipment or its modernization, the introduction of new technologies or the testing of new products. For any company, assets are one of the key elements of its activities. In this regard, the company must create an effective system for managing them.