Determine net assets. How to determine the value of an organization's net assets

What are net assets? A business's net assets are the difference between the adjusted amount of a business's assets and its liabilities—in short, the value of the business itself minus its debts.

The value of the net assets of an enterprise is calculated on the basis of Order of the Ministry of Finance No. 10-dated January 29, 2003 “On approval of the procedure for assessing the value of net assets of joint-stock companies.” For limited liability companies, when calculating net assets, the same calculation procedure is used (except for trustees of investment funds, gambling organizers) (letter of the Ministry of Finance of Russia N 03-03-06/1/39 dated January 26, 2007).

The calculation of the value of net assets of organizations (with the exception of credit organizations) is made on the basis of accounting, the procedure for which is established by the federal executive body.

When calculating the value of net assets in a credit institution, the amount of equity (capital) determined by the Central Bank of the Russian Federation in the prescribed manner is taken into account.

When is net asset value assessed? Net assets are assessed by the company quarterly, as well as at the end of the year at the reporting date. This assessment is reflected in the financial statements, quarterly and annually, respectively.

If at the end of the second and each subsequent reporting year the value of net assets turns out to be less than the authorized capital of the company, it must announce a reduction in its authorized capital to the resulting value of net assets, and register such a decrease in the prescribed manner (clause 4 of article 35 of the federal law dated 12/26/1995 No. 208-FZ, paragraph 3 of Article 20 of the Federal Law of 02/08/1998 No. 14-FZ).

If the new amount of the authorized capital is less than the minimum established by law, such an enterprise is subject to liquidation (clause 5, article 35 of the federal law of December 26, 1995 No. 208-FZ, clause 3 of article 20 of the federal law of 02/08/1998 No. 14-FZ, Article 90 of the Civil Code of the Russian Federation, Article 99 of the Civil Code of the Russian Federation).

To calculate the assets accepted for calculation, we take:

1. Non-current assets. They are reflected in the first section of the balance sheet and include: intangible assets (intangible assets), fixed assets (fixed assets), construction in progress (CW), profitable investments in tangible assets, long-term financial investments, other non-current assets;

2.Current assets. They are reflected in the second section of the balance sheet and include: inventories, value added tax on acquired assets, accounts receivable, short-term financial investments, cash, and other current assets. The value of current assets does not take into account the cost of the actual costs of repurchasing its own shares, which are purchased by the joint-stock company from shareholders for their subsequent resale or cancellation, and the debt of the participants (founders) for contributions to the authorized capital.

To calculate liabilities taken into account when calculating the value of net assets, the following are included:

1. long-term liabilities for loans and credits and other long-term liabilities;

2. short-term liabilities for loans and credits;

3. accounts payable;

4. debt to participants (founders) for payment of income;

5. reserves for future expenses;

6. other short-term liabilities.

That is, the following balance sheet indicators are involved in calculating the net assets of an enterprise.

An example of calculating the net assets of enterprises (for any form of ownership)

Balance sheet of Stroymaterialy LLC as of 10/01/2012:

When calculating the amount of assets, the calculation does not include such an indicator as the debt of the founders for contributions to the authorized capital (50,000 rubles). The amount of assets in our example will be 6,750,000 rubles. (2,300,000 + 1,600,000 + 700,000 + 200,000 + 800,000 – 50,000 + 1,200,000).

When calculating liabilities, the calculation does not include data from Section III of the balance sheet (RUB 1,500,000). Then the amount of liabilities in our example will be equal to 3,500,000 rubles. (1,000,000 + 400,000 + 200,000 + 1,900,000).

Total net asset value as of October 1, 2012 will be 3,250,000 rubles. (6,750,000 – 3,500,000).

The “net assets” indicator is necessary for analyzing activities, as well as for... It must be positive and exceed the size of the authorized capital. If there is an increase in net assets, then the profit of the enterprise is increasing. Those. the enterprise not only increased the funds that were initially invested in it, but also multiplied them. Of course, it is possible that this indicator will decrease, and it may be less than the authorized capital in the first, most difficult year of starting operations. But during normal operation of the enterprise, the situation evens out. If, nevertheless, the situation has not improved, then the company must either reduce its authorized capital or liquidate it in accordance with the law.

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Net assets (NA) are the real value of all company property, fixed assets and cash. In simpler terms, they represent the residual amount of own assets unencumbered by liabilities.

The indicator is calculated every year by enterprises of all organizational and legal forms. NA are calculated when organizing and running a business and are the main criterion for financial well-being, solvency, and the degree of risk of ruin of the company.

Calculation procedure and examples

The procedure for calculating the value is approved by legal documents and instructions. The calculation is done quarterly and annually at the reporting date with recording of the results obtained in the relevant documents.

The following are used in the calculations:

• Non-current assets are fixed and intangible assets, long-term financial investments.
• Current assets are cash, accounts receivable, securities, production, inventory, etc.

When adding up assets, the company's costs for purchasing its own shares from co-owners of the business and the debt of participants for investments in the authorized capital are excluded.

Liabilities involved in the calculation include:

• debt to co-owners for payment of dividends;
• targeted funding and revenues;
• other long-term liabilities, including deferred tax payments;
• loans, loans, etc.

When adding up liabilities, future income is not taken into account. Moreover, only those that are recognized by the company in connection with the receipt of gratuitous property or assistance from the state.

The formula looks like this:

NA = (A - ZU - ZVA) - (P - DBP), Where:

• NA - net assets;
• A - assets;
• ZU - debt of business participants on contributions to the authorized capital;
• ZBA - costs of purchasing the company's own shares from co-owners;
• P - liabilities;
• DBP - deferred income.

The amounts for calculation are taken from the enterprise, where liabilities are accounted for in lines 1400 and 1500, assets - in line 1600. You will also need the debit value of account 75, reflecting the debts of participants on contributions to the authorized capital, and the data in line 1530 - deferred income.

The calculation algorithm for the balance sheet looks like this:

NA = (line 1600 - line 75) - (line 1400 + line 1500 - line 1530)

Example

The balance sheet of Sibiryak LLC as of November 1, 2015 is presented in the following table:

• Value of assets: 3,919,150 = 1,599,500 + 999,300 + 455,150 + 145,200 + 525,600 + 630,250 - 35850.
• The amount of liabilities: 2,629,800 = 745,300 + 268,300 + 95,600 + 1,520,600, the calculation does not include data from the 3rd part of the report.
• NA = 3,919,150 – 2,629,800 = 1,289,350.

Based on the calculation, the net asset value of Sibiryak LLC as of November 1, 2015 is 1,289,350 rubles.

You can get detailed information about this indicator from the following video:

Analysis of the results obtained

The resulting value determines the organization's solvency, profitability, and sometimes further development. The indicator should be used to judge the company’s ability to pay off its obligations, invest in expanding production, or open new directions.

That's why the normal value of net assets should be a positive value. When the NAV value is negative, the firm is considered insolvent, dependent on loans and has no income of its own. The higher the indicator, the more solvent and attractive the company is to investors.

The indicator analysis includes:

• Monitoring changes in the size of the net assets; for this purpose, they are compared at the beginning and end date of the reporting period. And based on the results obtained, the reasons that contribute to the increase or decrease of own funds are identified.
• An assessment of the reality of the dynamics of the net asset value is used to calculate the proportion of net and total assets at the beginning and end of the reporting period. A large increase in the indicator at the end date is associated with an increase in total funds, and the increase in the NAV is actually insignificant.
• Evaluating the effectiveness of use. Determined by calculating and studying turnover and profitability ratios.

Since during the analysis this value is compared with data on revenue and net profit for the year, when making calculations it is more correct to use not a fixed figure of net assets as of the end date, but the average value for this period.

Comparison with authorized capital

In addition to dynamic analysis, after the first year of operation, the company is obliged to regularly compare the value of net assets and the authorized capital. The legislation establishes that the size of the private equity must be greater than the authorized capital.

If the calculations reveal a reverse trend, this greatly increases the risk of bankruptcy of the company, and legal documents prescribe reducing the authorized capital to the size of the private equity. If its monetary volume is already minimal, the enterprise is obliged to announce its liquidation. However, the current legislative document defines the following:

• Even in cases where the value of net assets is actually less than the authorized capital, the company can maintain solvency, conduct financial activities for a certain time and strictly fulfill debt obligations.
• Requirements to reduce the size of the authorized capital or liquidate the organization are considered interference in its activities; in addition, the enterprise can be declared, which will serve to protect the interests of creditors.

Ways to increase the indicator

Regular and thorough study of NA allows you to find ways to increase them, such as:

• improving the composition of fixed assets;
• sale or destruction of unused property and equipment;
• increasing the volume of goods sold by improving product quality, expanding sales channels, changing pricing policies, and using new ideas and solutions;
• increasing the efficiency of control over the company's inventories, debts and investments.

Net assets are the most important indicator of a company's performance. The main goal of competent and timely analysis of financial data is the ability to prevent and avoid undesirable situations in the activities of any organization.

The calculation of net assets on the balance sheet is carried out in accordance with the requirements of Order No. 84n dated August 28, 2014. The procedure must be applied by JSCs, LLCs, municipal/state unitary enterprises, cooperatives (industrial and housing) and business partnerships. Let us consider in detail what the term net assets means, what significance this indicator has for assessing the financial condition of a company and what algorithm is used to calculate it.

What determines the size of net assets on the balance sheet

Net assets (NA) include those funds that will remain in the ownership of the enterprise after the repayment of all current liabilities. Defined as the difference between the value of assets (inventory, intangible assets, cash and investments, etc.) and debts (to counterparties, personnel, budget and extra-budgetary funds, banks, etc.) with the necessary adjustments applied.

The calculation of the value of net assets on the balance sheet is carried out based on the results of the reporting period (calendar year) in order to obtain reliable information about the financial condition of the company, analyze and plan further operating principles, pay dividends received or actually evaluate the business in connection with a partial/full sale.

When determination of net assets is required:

1. When filling out annual reports.
2. When a participant leaves the company.
3. At the request of interested parties - creditors, investors, owners.
4. In case of increasing the amount of the authorized capital due to property contributions.
5. When issuing dividends.

Conclusion - NAV is the net assets of the company, formed from its own capital and not burdened with any obligations.

Net assets - formula

To determine the indicator, the calculation includes assets, except for the receivables of the participants/founders of the organization, and liabilities from the liabilities section, with the exception of those deferred income that arose due to the receipt of government assistance or donated property.

General calculation formula:

NA = (Non-current assets + Current assets – Debt of the founders – Debt of shareholders in connection with the repurchase of shares) – (Long-term liabilities + Short-term liabilities – Income attributable to future periods)

NA = (line 1600 – ZU) – (line 1400 + line 1500 – DBP)

Note! The value of net assets (the formula for the balance sheet is given above) requires, when calculating, to exclude objects accepted for off-balance sheet accounting in the accounts of secondary storage, BSO, reserve funds, etc.

Net assets - calculation formula for the 2016 balance sheet

The calculation must be drawn up in an understandable form using a self-developed form, which is approved by the manager. It is allowed to use the previously valid document for determining the NA (Order No. 10n of the Ministry of Finance). This form contains all required lines to be filled out.

How to calculate net assets on a balance sheet - shortened formula

The value of net assets on the balance sheet - the 2016 formula can be determined by another, new method, which is contained in Order No. 84n:

NA = Capital/reserves (line 1300) + DBP (line 1530) – Debts of the founders

Analysis and control

The size of Net Assets (NA) is one of the main economic and investment indicators of the performance of any enterprise. The success, stability and reliability of a business is characterized by positive values. A negative value shows the unprofitability of the company, possible insolvency in the near future, and probable risks of bankruptcy.

Based on the results of settlement actions, the value of net assets is estimated over time, which should not be less than the amount of the authorized capital (AC) of the company. If the reduction does occur, according to the legislation of the Russian Federation, the enterprise is obliged to reduce its capital and officially register the changes made in the Unified Register (Law No. 14-FZ, Article 20, paragraph 3). The exception is newly created organizations operating for the first year. If the size of net assets is less than the size of the capital, the enterprise may be forcibly liquidated by decision of the Federal Tax Service.

Additionally, there is a relationship between the value of the NAV and the payment of required dividends to participants/shareholders. If, after accrual of income/dividends, the value of net assets decreases to a critical level, it is necessary to reduce the amount of accruals to the founders or completely cancel the operation until the normatively designated ratios are achieved. You can increase the NAV by revaluing the property resources of the enterprise (PBU 6/01), receiving property assistance from the founders of the company, taking an inventory of obligations regarding the statute of limitations and other practical methods.

Net asset value on balance sheet – line

The organization's financial statements contain all the indicators required for mathematical calculations, expressed in monetary terms. In this case, data is taken at the end of the reporting period. When it is necessary to determine the value for another date, interim reports should be prepared at the end of the quarter/month or half-year.

Attention! The amount of net assets is also displayed on page 3600 of Form 3 (Statement of Changes in Capital). If a negative value is obtained, the indicator is enclosed in parentheses.

The net assets of an LLC characterize the financial state of affairs of the company; this indicator is necessary when assessing the profitability of the LLC, when increasing or decreasing the authorized capital of the LLC, and is also taken into account when paying the actual value of shares to participants upon exit or exclusion from the LLC.

The net assets of an LLC are the book value of the company's property, reduced by the amount of its liabilities, that is, the real value of the LLC's property, not encumbered with liabilities.

An LLC is required to evaluate its net assets:

• annually before the next annual general meeting of LLC participants. The LLC's annual report contains a section on the state of net assets (Federal Law No. 14-FZ of February 8, 1998 “On Limited Liability Companies”, hereinafter referred to as the LLC Law);
• before the LLC makes decisions that depend on the value of net assets, for example, before holding an extraordinary meeting of the LLC on the distribution of net profit, before paying a share to an LLC participant in the event of leaving the company (clause 8 of Article 23 of the LLC Law), before making a major LLC transaction (Article 46 of the LLC Law) and other cases.

The annual report of the LLC must contain indicators characterizing the dynamics of changes in the value of the net assets and authorized capital of the LLC:

• for the last three financial years, including the reporting year, if the LLC has existed for more than 3 years;
• for each completed financial year, if the LLC is less than 3 years old.

If the value of the LLC’s net assets is less than its authorized capital, the LLC’s annual report also includes:

• the results of the analysis of the reasons and factors that, in the opinion of the sole executive body, the board of directors of the LLC, led to this,
• a list of measures to bring the value of the LLC’s net assets in line with the size of its authorized capital.

The value of the company's net assets (with the exception of credit institutions) is determined according to accounting data in the manner established by the federal executive body authorized by the Government of the Russian Federation (Clause 2 of Article 30 of the LLC Law).

Previously, the Ministry of Finance of Russia recommended using the Procedure for assessing the value of net assets of joint-stock companies, approved, to calculate the value of net assets of LLCs. Ministry of Finance of Russia and Federal Commission for the Securities Market of Russia dated January 29, 2003 No. 10n, 03-6/pz (see Ministry of Finance of Russia dated May 13, 2010 No. 03-03-06/1/329, dated December 7, 2009 No.).

Currently, the Procedure for determining the value of net assets is in force, approved. Ministry of Finance of Russia dated August 28, 2014 No. 84n (hereinafter referred to as the Procedure), paragraph 1 of which directly provides for the possibility of its application in relation to LLCs.

The value of the LLC's net assets is determined according to accounting data as the difference between the value of the assets and liabilities of the company accepted for calculation (clauses 4, 7 of the Procedure). A negative net asset value means that the amount of debts of the LLC exceeds the value of the company's property.

If at the end of the second or each subsequent financial year the value of the LLC’s net assets turns out to be less than its authorized capital, the company is obliged, in the manner and within the time period provided for by the Law on LLC, to increase the value of the net assets to the amount of the authorized capital or to register in the prescribed manner a decrease in the authorized capital. If the value of the company's net assets becomes less than the minimum amount of authorized capital (10,000 rubles - clause 1 of Article 14 of the LLC Law), the company is subject to liquidation (Civil Code of the Russian Federation as amended on May 5, 2014 No. 99-FZ).

The deadline for an LLC to make a decision to reduce its authorized capital to an amount not exceeding the value of its net assets is six months after the end of the relevant financial year (Clause 4, Article 30 of the LLC Law).

The period during which the increase in the value of net assets must be carried out is not established by law. The law does not establish a special procedure for increasing the value of the company’s net assets to the amount of its authorized capital. Let us note that it is possible to increase the value of net assets by making contributions by participants to the company’s property, since such contributions do not change the size and nominal value of their shares in the authorized capital. However, the obligation to make contributions based on the decision of the general meeting of participants must be provided for by the company’s charter (Article 27 of the LLC Law).

The financial year corresponds to the calendar year and lasts from January 1 to December 31 (Budget Code of the Russian Federation). Within the meaning of the Civil Code of the Russian Federation, paragraphs. 3, 4 tbsp. 30, pp. 6 paragraph 2 art. 33, art. 34 of the LLC Law, a financial year should be understood as the year following which the annual results of the company’s activities are approved (in particular, the annual balance sheet) and the value of its net assets is determined. Since the obligation to keep records for a company arises from the date of its state registration, and the determination of annual results of activity is also possible based on the results of the calendar year during which the company was created (Federal Law of December 6, 2011 No. 402-FZ “On Accounting”) , the first financial year of the company for the purposes of applying the rules of the Civil Code of the Russian Federation can also be understood as the year of creation of the LLC.

If the company fails to take the necessary measures to bring the value of net assets in line with the size of the authorized capital or fails to make a decision on liquidation, the company may be liquidated by a court decision (Civil Code of the Russian Federation).

In practice, courts sometimes consider a decrease in net assets as a sign of a deteriorating financial condition of an LLC. If, in this case, no damage is caused to the rights and legitimate interests of creditors and third parties, and the LLC is operating, submits quarterly tax and accounting reports to the inspectorate, and fulfills its obligations for timely payment of taxes, then the courts refuse to satisfy claims for the liquidation of the LLC (see, for example , FAS North Caucasus District dated December 16, 2010 in case No. A53-3538/2010).

Information on the value of the net assets of an LLC is subject to mandatory entry into the Unified Federal Register of the Facts of Activities of Legal Entities (hereinafter referred to as Fedresurs) in cases provided for by the Law on LLCs (subclause “l”, paragraph 7, article 7.1. dated 8.08.2001 No. 129- Federal Law "On State Registration of Legal Entities and Individual Entrepreneurs"). An LLC is obliged to provide access to information about the value of its net assets to any interested party (Clause 2, Article 30 of the LLC Law). The information contained in the Fedresurs is posted on the Internet at the address: http://www.fedresurs.ru.

An annual report is an ambiguous concept. It includes not only the submission of tax returns to the Federal Tax Service and financial statements to statistics, but also a number of other activities for summing up the work and analysis. One of the important criteria that every LLC and JSC accountant must evaluate after drawing up a balance sheet is the amount of net assets. This is an indicator of the financial viability of an organization, which affects its relevance among investors. We will tell you not only how to calculate net assets on the balance sheet, but also how to correctly evaluate this indicator.

Assessing the organization’s performance at the end of the year and successfully planning its future activities is impossible without analyzing economic indicators. One of the most important is the net asset indicator (NA), which is determined on the basis of the financial report of a legal entity for the year. The calculation of net assets on the balance sheet must be carried out by all legal entities that maintain accounting records and submit reports. These include, in particular:

• limited liability companies;
• joint stock companies;
• business partnerships;
• state unitary enterprises;
• municipal unitary enterprises;
• production cooperatives;
• housing savings cooperatives.

The standards for determining the net asset value were approved by Order of the Ministry of Finance of Russia dated August 28, 2014 No. 84n “On approval of the procedure for determining the value of net assets.” In addition, the specifics of its calculation and reflection must be specified in the accounting policies of the organization.

Net assets: formula for calculating the balance sheet 2019

At its core, which is reflected in the Ministry of Finance formula, an organization’s NAV is the difference between the sum of all the organization’s assets and the sum of its liabilities. The formula you need to use looks like this:

In this case, the assets must include all the assets of the organization, excluding receivables from shareholders or founders for contributions (contributions) to the authorized capital or payment for shares. The organization's liabilities that must be deducted from assets, according to the formula, include all liabilities with the exception of deferred income recognized in connection with the gratuitous receipt of property or government assistance. Because such income is effectively recognized as equity, for purposes of calculating net assets, it is excluded from the current liabilities section of the balance sheet, shown on line 1530.

If you look at the company's net assets on the balance sheet, they look like this:

If the question arises of how to calculate net assets according to the lines of the balance sheet, another, simplified formula is used. After all, if the balance has already been compiled, there is no need to take data for calculation from accounting. In addition, according to the rules introduced in 2015, objects on off-balance sheet accounts are not taken into account. The formula for net assets on the balance sheet looks like this:

Increasing the organization's NA

The net asset indicator, otherwise called net worth, is one of the key indicators in the activities of any commercial company. The annual average can be either positive or negative. The latter indicates that the company has practically no own funds and is completely dependent on creditors. Both for potential investors and for regular creditors, this state of affairs is an alarming sign. Sometimes presenting a balance sheet with negative NA threatens with serious consequences, including the liquidation of the enterprise. Moreover, Article 20 of Federal Law No. 14 dated 02/08/1998 states that if the private equity capital becomes less than the minimum authorized capital, then the limited liability company is subject to liquidation. In such moments of crisis, the value of the NA can be increased. There are several ways to do this:

• in line 1310 indicate the size of the authorized capital, which the founders can increase if they make additional contributions (additional issue);
• line 1350 of the balance sheet indicates additional capital. It can also be increased by revaluing the organization’s intangible assets and fixed assets;
• the founders can also make a contribution to replenish the reserve capital, which is displayed on line 1360 of the balance sheet;
• writing off overdue accounts payable will help quickly increase the NAV, but at the same time will lead to an increase in the income tax base;
• deferred income can also be increased if the founders or other persons transfer property to the organization free of charge. However, it will be possible to avoid an increase in income tax only if the benefactor owns at least 50% of the authorized capital or shares of the enterprise.

Obviously, if necessary, you can choose and implement the most acceptable method from the above. Although such, in fact, an artificial increase in the NAV will not lead to an increase in the company’s welfare. In practice, this negative indicator is acceptable only for newly created enterprises, since there is an objective reason why the invested funds simply have not yet had time to pay for themselves and generate income - this is time. Therefore, if the calculation results in a negative result, it is worth thinking about the fact that the company’s activities are unprofitable and the situation must be corrected not only in the balance sheet, but also in practice.

Registration of calculation of NAV

The value of net assets is not reflected in the balance sheet; it must be recorded on a separate form. It is noteworthy that the new order does not contain its mandatory or recommended form. Organizations are invited to independently develop the necessary form for calculating net assets, approve it in their accounting policies, and use it for reporting. However, the order of the Ministry of Finance does not prohibit using the old form. Its form still contains all the current data, so it is quite possible to use it in its previous capacity, having previously prescribed this in the accounting policy.

Form for calculating the net assets of an organization

Annual report for 2019 using ConsultantPlus

All necessary expert materials for preparing accounting and tax reporting for the year can be found in. It contains special material on this topic - “A Practical Guide to Annual Reporting 2016”, which thoroughly examines all aspects and nuances, provides examples and step-by-step instructions, as well as samples for filling out all forms and forms.