Main production assets

Fixed assets (non-current assets, fixed capital)- part of the enterprise’s property used as means of labor in the production of products. Fixed assets are material assets created by labor that function for a long time.

A number of similar concepts are often used in the literature - non-current assets, fixed capital, means of production, fixed assets, fixed assets. The concept of “non-current assets” is used mainly in financial reporting and is presented in section 1 of the asset balance sheet. This is the broadest concept, because they include all the assets of the private enterprise used to generate profit for a long time (usually more than 1 year).

The portion of the private equity capital invested in non-current assets constitutes fixed capital.

Fixed assets include: buildings, structures, working and power machines and equipment, computer equipment, vehicles, tools, production and household equipment and accessories, working, productive and breeding livestock, perennial plantings, on-farm roads and other relevant objects. Tools, industrial and household equipment and miscellaneous accessories if their cost exceeds 100 minimum wages at the time of their acquisition.

For the purpose of a more reliable analysis, fixed assets are classified into several groups according to their purpose.

Fixed assets are involved in a number of production cycles, transferring its value to manufactured products as they wear out, maintaining their natural-material form throughout the entire period beneficial use fixed assets.

Under for a period useful action understand the period of time during which an object of fixed assets is intended to generate income for the enterprise and serve the main goals of its activities.

The main defining features of fixed production assets:

Natural and value measurement

Gradual transfer of value to the manufactured product - in parts as it wears out

Preservation of natural material form during service life

There are different ways of receiving fixed assets to an enterprise:

Purchasing, manufacturing

Capital contribution

Receipt under a gift agreement or free of charge as assistance

Receipt under an agreement for payment in kind or by offset

OS can be divided into tangible and intangible. Intangible assets include:

1. Rights to use land, natural resources, software products, monopoly rights and privileges, completed research and development carried out at one’s own expense - depreciable assets.

2. Patents, licenses, know-how, trademarks, trademarks are non-depreciable assets.

NMA have a number of characteristic properties that distinguish them from MA: duration of operation; no useful waste; high risk

Fixed assets include active and passive parts that play different role in the production process. Their ratio depends on the type of activity of the enterprise.

Structure of fixed assets- ratio separate groups in value terms.

Active part (production assets)- means of labor directly involved in the production process and in the creation of the product of labor: machines and equipment, measuring and control instruments, computing and organizational. equipment, vehicles, tools, production and household equipment.

Passive part (non-productive assets)- means of labor that contribute to the creation of a product: buildings, structures.

The passive part predominates in the clothing industry, food, meat and dairy industries, and the building materials industry.

The structure of fixed assets is influenced by the following factors:

1. Design and technological features of manufactured products - for the production of large-sized products large mass The passive part of the OS increases; in the manufacture of products of a simple configuration, the active part of the OS increases.

2. Type of production - with mass production of a certain type of product, the share of their active part increases. A single production is characterized by a decrease in the share of the active part.

3. Character technological processes and the technical level of production - new technologies and a high technical level determine the reduction of the passive part in the OS structure.

4. The level of concentration, specialization, cooperation and combination of production of large specialized substation with developed cooperative connections, with an increase in production volumes, the share of the active part of the operating system has increased.

5. Geographical location of the substation industry - the location of the substation close to sources of raw materials, consumers has an impact on reducing the share of the passive part of the operating system in the form of warehouses, fuel tanks, etc.

The functioning of fixed assets and intangible assets is limited by their service life, after which they are removed from circulation, which necessitates their renewal, replacement or modernization.

Fixed assets are reflected in the financial statements depending on the purpose at initial, replacement, residual and liquidation value.

Initial The cost of fixed assets acquired or built for a fee, as well as created at the point of sale, is recognized as the amount of the actual costs of the point of sale for the acquisition, construction or production, excluding VAT. The initial cost of fixed assets is not subject to change, except in cases of completion, additional equipment, reconstruction, modernization, partial liquidation and revaluation.

Restorative the cost of an operating system is the cost of similar operating systems under current reproduction conditions. Replacement cost is important in determining the cost of replacement.

Liquidation cost is the possible cost of selling an asset or its remnants at the end of its service life.

The use of fixed assets can be assessed using the trace. coefficients.

Reproduction of fixed assets is carried out in the form of capital investments.

The result of equipment replacement is assessed according to the following indicators:

1. Renewal coefficient Cob = OS in / OS k.g., where

OS in - cost of introduced fixed assets, OS k.g. - total cost of fixed assets at the end of the year.

2. Retirement coefficient Kvyb = OS vyb / OS n.g., where

OS select - cost of retired fixed assets, fixed assets n.g. - total cost of fixed assets at the beginning of the year.

3. Growth coefficient Kpr = OS in / OS in ng, where

OS in - cost of introduced fixed assets, OS n.g. - the total cost of basic assets at the beginning of the year.

The excess of input over disposal ensures an increase in fixed assets.

The problem of increasing fixed assets is relevant today.....

The process of growth of fixed assets is influenced by two fundamental factors: the investment activity of the enterprise and disposal.

Reasons for leaving may be:

Complete wear and tear or inability to continue use

Sale;

Lease;

Transfer as a founding contribution to the mouth. capital of other organizations;

Free transfer under an agreement of exchange or gift;

Liquidation in case of accidents, natural disasters;

In the process of managing non-current funds great importance have the following indicators:

1. Capital productivity = B / OS avg., where B is sales revenue, OS avg - = avg. cost of basic funds in the analyzed period

2. Capital intensity = OS avg / B

3. Profitability = P / OS avg, where P is profit, OS avg - = avg. cost of basic funds in the analyzed period

4. Capital-labor ratio = OS avg / H avg, where OS avg - = avg. cost of basic funds in the analyzed period, H av - average number workers.

Information on the availability and movement of fixed assets and other non-financial assets is contained in the special. reporting form developed by the State Statistics Committee of the Russian Federation No. 127. It includes the following sections: presence, movement, composition of fixed assets of the main type of activity, availability of fixed assets of other types of activities, depreciation and costs of major renovation OS, average annual cost of OS.

Fixed assets are indicated at balance sheet, replacement (including revaluation) and residual values, which allows one to assess the degree of their deterioration. Due to wear and tear of the OS, they require periodic re-evaluation

Wear- this is a partial or complete loss of the OS of its consumer properties and value.

There are:

1. Physical wear and tear:

1.1 Wear during use

1.2 Wear and tear due to inactivity

2. Obsolescence:

2.1 Due to increased productivity of social labor

2.2 Due to the use of economical and productive machines.

Revaluation of fixed assets is carried out using the following methods:

Expert method - revaluation is carried out by a special commission from among highly qualified specialists.

Index method - revaluation is carried out by multiplying the book value of the object by the price index, which is established by the Government of the Russian Federation.

In order to compensate for wear and tear, enterprises create a fund, the source of which is depreciation charges.

Depreciation of fixed assets is the process of gradually transferring their value to the manufactured product.

Sinking fund- a special monetary reserve intended for the reproduction of fixed assets in their full volume.

Depreciation rate (Na)- annual percentage of contributions to the fund, which represents the percentage of reimbursement of the cost of the operating system.

Fixed production assets (FPF)- these are means of labor that are directly involved in the production process and wear out repeatedly and gradually, transferring their own value to the goods produced by the enterprise. Fixed assets do not include assets used less than a year, as well as those whose cost is less than a hundred times the minimum wages(the value of the fund at the time of purchase is accepted).

How can fixed production assets be divided?

There are two main features of the OPF classification: the function being implemented and the degree of participation in the production process. Within the first classification, production assets are classified into:

• These include production premises - workshops, buildings, warehouses, garages, offices, etc. The task of buildings as fixed assets is to provide conditions for the placement of equipment involved in production and the efficient activities of employees.

• Facilities designed for the extraction and storage of useful natural resources. Structures include mines, quarries, and gas storage tanks.

• Transfer devices, aiming to provide production with the necessary resources in a timely manner. Transmission devices are electrical networks and product pipelines.

• Equipment - key type of production assets. The purpose of the equipment is to transform resources and raw materials into finished products. Equipment as a type of OPF can be classified even more finely - into:

- power machines (generators, compressors);

- working machines (all that have a thermal, mechanical, chemical effect on the item of production);

- regulators (measuring and computing devices).

• Transport serves to deliver materials and raw materials directly to the place of production. Transport can be intra-shop (electric cars), intra-factory (cars), external (railway, water transport).

• Tools and equipment. This includes instruments whose service life exceeds 12 months.

The second sign - participation - allows you to divide the general public fund into active And passive. Active OPFs directly affect the subject of labor - this includes equipment and tools. Passive ones are not directly involved, but are still necessary - these are buildings and transport.

OPF assessment

A reasonable and correct assessment of OPF is important for a number of reasons:

• It affects the price of finished products.

• It serves as the basis for calculations when leasing or privatizing funds.

• It determines the possibility of introducing new developments.

Three assessment methods are used:

1. Initial cost– the totality of costs necessary to put the fund into operation.

1. Replacement cost– the price of an object on a specific date, taking into account current prices. When calculating, the initial cost is taken, which is adjusted by applying coefficients.

1. Residual value– the price of the object, adjusted for the amount of wear and tear generated during use. It is this calculation method that is used to reflect the price of production assets in the balance sheet.

Wear of OPF

Wear and tear of the OPF can be one of two types: physical and moral. Physical wear and tear called the loss of the fund's technical characteristics as a result of exposure to chemical, thermal and other factors. Reason obsolescence is considered scientific and technological progress - more productive, economical and efficient machines are being created, so the use of old equipment becomes impractical.

Indicators of the use of OPF

The final result of using OPF is reflected by two indicators - return on assets And capital intensity. Capital productivity is the ratio of the volume of manufactured products in value terms to the cost of the general fund. Capital intensity – inverse indicator. These indicators allow the manager to understand whether measures need to be taken to improve the use of OPF. If necessary, the following measures can be implemented:

• Technical modernization of machines.

• Improving the structure of funds by increasing the share of equipment.

• Increasing the efficiency of operational planning (you can learn about methods for increasing it in this article).

• Increasing the intensity of use of OPF.

• Improvement of employee qualifications.

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Fixed assets and their use

The main element of the production process is the means of production, which form the production assets of the enterprise. Production assets are understood as means of production, expressed in value form and functioning in the sphere of material production. The production assets of the enterprise are divided into basic industrial production assets and working capital.

Fixed assets are the most significant component of the enterprise's property and its non-current assets. Fixed assets are fixed assets expressed in value terms.

Fixed assets are a set of material assets operating in kind for a long time both in the sphere of material production and outside the production sphere. Participating in the production process for a long time, fixed assets, as they are used, transfer their value in parts to the finished product, while maintaining their natural material form.

However, not all means of labor are considered fixed assets. They are not classified as fixed assets and are included in low-value and wear-and-tear items:

regardless of their service life, construction mechanized tools, which are classified as fixed assets regardless of their cost;

items that last less than one year, regardless of their value;

special tools and special devices, work clothes, including uniforms, special shoes, as well as bedding, rental items, regardless of their cost and service life.

The main defining features of the enterprise's fixed assets are as follows:

they are used by the enterprise for the production of goods and services, for rent to other organizations;

participate in economic activity enterprises for more than one year;

retain their natural material form for a long time;

their cost is transferred to manufactured products gradually, in parts, over a number of cycles.

Structure of fixed assets

For the correct organization of accounting for fixed assets, their classification is of great importance. For accounting, evaluation and analysis, fixed assets are classified according to a number of characteristics.

Depending on their functional purpose, fixed assets are divided into production and non-production.

Basic production assets are repeatedly involved in the production process, while maintaining their natural material form.

Fixed non-production assets do not participate in the production process and do not transfer their value to the finished product; they are designed to satisfy the everyday and cultural needs of people.

Depending on the material and natural composition, the main production assets are divided into the following groups:

buildings - industrial and non-industrial buildings, residential buildings;

structures - hydraulic structures, dams, bridges, overhead roads, etc.;

transmission devices - with their help energy is transmitted various types, as well as liquid and gaseous substances;

mechanisms and equipment - power machines and equipment, heating equipment, turbine equipment, electric motors, tractors, etc.;

vehicles - railway rolling stock, sea and river fleets, industrial and municipal transport, rolling stock of road transport, etc.;

tools - drilling and jackhammers, spray guns, etc.;

industrial and household equipment and accessories - containers, hotel equipment and economic organizations etc.;

working and productive livestock - horses, camels and other livestock, except oxen and deer;

perennial plantings - cherry, plum, vineyards, etc.

Based on the degree of impact on the subject of labor, fixed production assets are divided into active and passive.

Active funds serve the production process and directly influence the level of technical equipment of labor at the enterprise.

Passive funds take an indirect part in the production process and create conditions for its implementation.

Based on ownership, fixed assets are divided into own and borrowed. Own funds wholly owned by the company. Borrowed funds, being the property of other enterprises, are temporarily used in this enterprise in accordance with a rental or leasing agreement.

Based on industry, fixed assets are divided into fixed assets of industry, construction, transport, communications, etc.

By age composition, fixed assets are grouped depending on their service life: up to 5 years, from 5 to 10 years, from 10 to 15 years, from 15 to 20 years, over 20 years.

The above classification of fixed assets shows that not all of their types play the same role in the production process. For example, some are directly involved in the production process, while others have an indirect influence on it. In this regard, the ratio of individual fixed assets in their total value, or their ratio in structure, is of great economic importance.

Initial cost

The initial cost is the cost of acquiring fixed production assets, including construction and installation work, transportation costs for the delivery of equipment, customs duties and other costs associated with the commissioning of an inventory unit of fixed assets.

At their original cost, fixed assets are included in the balance sheet of the association or enterprise. This value is the basis for the calculation depreciation charges, payments to the budget, profitability and capital productivity. The advantage of this valuation method is its simplicity, since the initial cost is always known, but the disadvantage is the lack of consideration of the degree of moral and physical deterioration. This disadvantage manifests itself with prolonged use of funds. For these types of funds, their actual value does not correspond to the original value, and therefore, significant distortions are introduced into the calculation of economic indicators.

Replacement cost

Replacement cost is the cost of manufacturing fixed assets in modern conditions, which is determined at the time of revaluation as the product of the original cost of fixed assets and the conversion factor for the value of fixed assets, taking into account changes in prices for similar types of fixed assets.

In conditions of inflation, revaluation of fixed assets at an enterprise allows:

objectively assess the true value of fixed assets;

more correctly and accurately determine the costs of production and sales of products;

more accurately determine the amount of depreciation charges sufficient for the simple reproduction of fixed assets;

objectively set sales prices for sold fixed assets and rent.

Residual value

Residual value is the original or replacement cost minus actual accrued depreciation, that is, it is that part of the cost of fixed assets that has not yet been transferred to manufactured products.

Valuation of fixed assets at their residual value is necessary, first of all, in order to know their qualitative condition, in particular, to determine the coefficients of serviceability and physical deterioration and to draw up a balance sheet.

Thus, the residual value involves the exclusion of that portion of the cost of fixed assets that is transferred to the products in the manufacturing process of which they took part.

Depreciation of equipment

During operation, fixed assets gradually deteriorate, losing their consumer value. In this regard, there is a need to replace them with new, more modern ones. The loss of value of fixed assets occurs in two forms - physical and moral wear and tear.

Physical wear and tear is the result of material wear and tear of fixed assets both during their use and during inactivity due to natural and climatic conditions, corrosion, changes in the structure of metals, etc. Under the influence of a number of factors, wear of fixed assets occurs at different times. In this regard, a distinction is made between complete and partial depreciation of fixed assets. Complete physical depreciation involves the liquidation and replacement of worn-out fixed assets with new ones at the expense of the depreciation fund. Partial wear and tear is compensated through repairs at the cost of production.

Obsolescence of fixed assets does not depend on their physical wear and tear. A physically capable machine may be so obsolete that its operation becomes economically unprofitable.

The essence of obsolescence is that the means of labor remain operational, but their operation becomes economically unfeasible before physical wear and tear occurs, until the end of their useful life. To the greatest extent, obsolescence is characteristic of the active part of fixed assets - machinery and equipment and is caused by scientific and technological progress.

There are two types of obsolescence. Obsolescence of the first kind is the loss of value of machines as their reproduction becomes cheaper. Obsolescence of the second type of existing machinery and equipment is due to the emergence and introduction of new, more progressive machines into the national economy

To replace worn-out fixed assets, enterprises must accumulate certain funds. Accumulation is carried out by calculating depreciation. To reimburse the cost of worn-out fixed assets, a depreciation fund is used, which is formed through depreciation charges.

The concept of “wear and tear” is primary in relation to the concept of “depreciation”. First of all, wear and tear is material, measurable and does not depend on accounting methods. Depreciation is intangible, it cannot be measured, but can only be quantitatively determined, that is, accrued, and in one way or another, which is laid down in the accounting policy of the organization.

Depreciation

Depreciation - This is the process of allocating the depreciable cost of an asset between reporting periods over its useful life and systematically transferring the depreciable cost of the asset to the cost of products produced using it.

The enterprise independently determines the methods and methods for calculating depreciation.

The straight-line method involves the enterprise accruing depreciation evenly over the entire standard service life of fixed assets. With the linear method, the annual depreciation rates in the first and each subsequent year are the same. The annual amount of depreciation is determined based on the depreciable cost of the fixed asset and the standard service life by multiplying the depreciable cost by the accepted annual linear depreciation rate.

This method is easy to use and involves the straight-line accumulation of depreciation charges. At the same time, it weakly stimulates an increase in the efficiency of use of fixed assets; there is the possibility of under-depreciation due to insufficient consideration of the impact of obsolescence, etc. these problems can be solved by using the accelerated depreciation method.

Non-linear methods involve uneven accrual of depreciation by an enterprise over the useful life of a fixed asset. With the non-linear method, the annual amount of depreciation is calculated using the sum of numbers of years method or the reducing balance method. Depreciation rates in the first and each of the subsequent years of the period of application of non-linear methods may be different.

An enterprise has the right to establish a non-linear method of calculating depreciation in relation to: transmission devices, power machines and mechanisms, laboratory equipment, computer equipment, tools, draft animals, and intangible assets.

The non-linear method of calculating depreciation does not apply to machinery, equipment, vehicles with a standard service life of up to 3 years, unique equipment intended for use only under certain conditions, interior items, and leisure items.

With the non-linear method, the annual amount of depreciation is calculated using the sum of years method or the reducing balance method with an acceleration factor in the interval.

Useful life

The inclusion of a fixed asset in a particular depreciation group depends on its useful life, that is, the period of time during which the depreciable property serves the owner’s purposes. This period is set by the taxpayer when putting the OS into operation.

This period can be changed upward by carrying out reconstruction, technical re-equipment or modernization. The useful life can be increased only within the years established for a given depreciation group.

If, as a result of the improvements, the useful life period has not changed, then the remaining operating period will be used in the calculations.

The useful life of intangible objects is determined by the validity period of the certificate, patent, contract in accordance with the legislation of Russia or other states. If it is impossible to determine the period of use of an intangible asset, then by default 10 years are taken into account (but not more than the period of activity of the owner).

For intangible assets such as the exclusive right to a utility model, industrial design, invention, computer program, selection achievements, topology of integrated circuits, the owner has the right to set the operating time independently, but not more than 2 years.

Enterprise performance indicators

To determine the efficiency of using fixed assets, a number of general indicators are used.

Capital productivity is defined as the ratio of the volume of production in monetary terms to the average annual cost of fixed assets, that is, it determines the output per 1 i of fixed assets.

In practice, when planning the need for fixed assets, the capital intensity indicator is used products, which characterizes the required amount of fixed assets to obtain products for 1 i.

The level of provision of workers with fixed assets is determined by the capital-labor ratio. It shows the cost of fixed assets per employee.

Indicators of efficiency in the use of fixed assets can be improved due to the following factors:

improving the organization of production and labor and eliminating unscheduled downtime;

reducing time and improving the quality of repairs;

involvement of idle fixed assets into operation;

modernization and automation of equipment;

advanced training of personnel;

improvement of equipment and technology.

Fixed assets include assets owned by the organization that are used in entrepreneurial activity and meeting a number of conditions. The types of property (hereinafter referred to as fixed assets), the conditions for their recognition in accounting, as well as the main differences between accounting (AC) and tax (TA) accounting for fixed assets are discussed in our article.

Concept and composition of fixed assets

IN composition of the enterprise's fixed assets includes assets that have a material expression and strictly meet the criteria established by law, which we will discuss in more detail in the next section of the article.

Such assets include buildings, structures, machinery, equipment, instruments intended for measurements and adjustments, computers, transport, tools, equipment, road infrastructure, as well as other types of assets.

In agricultural organizations fixed assets include breeding and working cattle, perennial plants.

OS can also include land, capital investments for their improvement (for example, reclamation or irrigation work), as well as Natural resources, such as water, subsoil, etc.

IMPORTANT! Objects of tangible assets do not belong to fixed assets if they are located in warehouses of trade or manufacturing enterprises who manufacture them. In this case, they are accounted for as goods held for sale or as finished goods.

IN accounting policy(hereinafter - UP) organizations may be provided with a cost limit, below which assets that meet the criteria for recognizing them as fixed assets in accounting can be classified as inventories. In this case, the specified limit should not exceed 40,000 rubles. (paragraph 4, clause 5 of the Regulations on OS accounting (PBU 6/01)).

IMPORTANT! Fixed assets, the use of which is limited to leasing, are recognized in accounting and reporting as profitable investments in material assets.

By general rule capital investments are not belong to the fixed assets of the enterprise(Clause 3 PBU 6/01). Capital investments in leased fixed assets can be included in their composition (paragraph 2, paragraph 5 of PBU 6/01).

What is included in the group of fixed assets: criteria

In order to recognize property as an item of fixed assets, 4 more basic conditions must be met:

1. this object must be used in business activities;
2. the use of the object must continue for more than 12 months;
3. the object is not acquired or created for sale, and such sale is not expected in the near future;
4. the use of an OS object must generate income for the organization.

Despite the fact that PBU 6/01 provides only 4 requirements, we believe that, as an additional criterion for recognizing fixed assets in accounting, it is worth considering the possibility of determining the initial cost of fixed assets.

Thus, PBU 6/01 contains a specific indication that fixed assets are accepted in accounting at their original cost. Consequently, the impossibility of its definition should cast doubt on any possibility of recognizing OS.

For application of the above criteria, see the article.

Accounting for capital investments in leased fixed assets

Capital investments made in leased fixed assets can also be recognized as fixed assets. In this situation, 2 options are possible: when the lessor compensates for the cost of capital investments and when he does not compensate for such costs.

In the 1st option, such investments in leased property do not form an asset for the tenant, since then the result of these investments belongs to the lessor. Such costs are accumulated in the capital investment account and are subsequently written off to the account for settlements with the lessor.

In the 2nd option, accordingly, capital investments after their completion can form the cost of a separate fixed asset item.

This procedure is provided for in clause 35 of the Methodological Guidelines for Accounting for Fixed Assets (Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n).

In the event that the lessor reimburses, for example, not the entire cost of capital investments, but minus depreciation, part of the value not reimbursed in this order may also form the cost of a separate fixed asset.

Differences in accounting and tax accounting of fixed assets

In general, both PBU 6/01 and the Tax Code of the Russian Federation contain similar definitions of OS. The main differences can be summarized as follows:

• Used for accounting purposes All-Russian classifier fixed assets OK 013-94 (Resolution of the State Standard of the Russian Federation dated December 26, 1994 No. 359). Starting from 01/01/2017, this document will no longer be valid and a new classifier will be used - OK 013-2014 (Rosstandart order dated 04/21/2016 No. 458). At the same time, for tax purposes they use the Classification of fixed assets included in depreciation groups (Resolution of the Government of the Russian Federation dated January 1, 2002 No. 1).
• Since January 1, 2016, the Tax Code of the Russian Federation contains a condition according to which property worth more than 100,000 rubles is included in the OS. (Clause 1 of Article 257 of the Tax Code of the Russian Federation). As we noted earlier, in accounting the threshold for recognizing property as fixed assets is 40,000 rubles.

Read more about possible ways eliminating differences between accounting and tax accounting see the article.

• In tax accounting, fixed assets are included in the depreciation group from the moment of documentary confirmation of filing an application for state registration in relation to property for which such registration is provided. In accounting, this requirement does not apply.
• Many differences between accounting and tax accounting of fixed assets are associated with the procedure for calculating depreciation and, in certain cases, determining their initial cost.

For more information on tax accounting of fixed assets, see the article.

Results

Fixed assets are an important component of the property of any enterprise. Correct qualification of objects that belong to fixed assets, is a guarantee not only of correct accounting of such assets, but also the ability to manage the costs of the enterprise and avoid undesirable tax consequences.

In order to have a clear understanding of the enterprise and the nuances of its functioning, it is necessary to understand such a concept as fixed assets. It is necessary to understand what basic resources are, otherwise it will be difficult to understand the algorithm successful development companies.

What is the authorized capital?

The authorized capital of an enterprise must be understood as the totality of material and production values ​​used in the production process throughout long period time. In essence, we are talking about those resources without which the enterprise will not be able to function fully and stably. The role of such resources can be buildings, machinery, equipment and any means of labor that support the production process. Regarding such a concept as fixed assets, we should not forget about cash, because without them the enterprise will not be able to obtain circulation funds and working capital.

Taking this information into account, it can be argued that the rational and competent use of fixed assets is one of the priorities of any company.

Such a concept as the fixed capital of an enterprise can be replaced by other terms that carry the same meaning: fixed capital, fixed assets, non-current assets or means of production.

Classification of fixed assets

In order for the state of an enterprise’s non-current assets to be assessed more constructively, it makes sense to classify fixed capital:

Facilities. These are various overpasses, bridges, sewerage, hydraulic and water supply structures, oil and gas wells, mines, overpasses and tunnels. The main task of structures of this format can be defined as maintenance of production, which is not affected by changes in labor.

The fixed assets also include buildings. In this case, we are talking about the premises of various services of the enterprise, shops, laboratories, warehouses and production buildings. This type of asset is necessary to create comfortable conditions that ensure normal production. The “buildings” category is relevant for protecting equipment and machines from exposure to environment, capable of causing damage.

Laboratory equipment, as well as devices and instruments performing both measuring and regulatory functions. The fixed assets of an enterprise in this category are formed from interlocks, alarms, measuring, testing and control equipment. The relevance of this group of resources is due to the need automated control production, as well as laboratory research and testing of semi-finished products, finished products, components and raw materials.

Another group of resources that forms the fixed assets is non-current assets, including equipment and machinery. This category includes thermal furnaces, equipment, information, energy and working machines, woodworking and metal-cutting machines, galvanic equipment, presses, electrical equipment and forging and pressing machines. This category of resources is necessary for the formation and provision of full-fledged production, as a result of which a production process becomes possible that allows the formation of a finished product when exposed to an object.

Household and industrial equipment. The fixed assets also include this component, which should be understood as sports and household equipment (household and office items) and industrial equipment, including items that perform technical functions (furniture, containers for storing liquids, containers). This resource group should be perceived as a necessary component of the production process.

The category of transfer devices is also part of the resources that form the fixed assets of the enterprise. These are various communication and power transmission devices. It's about about water supply systems, sewer networks, heating and electrical networks, overhead communication lines, pipelines and cable lines. This resource category is necessary to ensure the transfer of mechanical, thermal and electrical energy to working machines.

Differences between fixed assets by the degree of participation in the production process

If we use this criterion for classifying fixed assets, we can distinguish 2 key categories:

• Passive elements (structures, buildings). Their main goal is to provide the conditions necessary for the production process.
• Active elements (equipment, machines). This part of the resources is necessary to directly influence the quality and quantity of products produced.

Within the framework of the topic “The fixed capital of an enterprise is... What does it consist of?” It is worth paying attention to the economic cycle, which includes the following stages:

• depreciation of fixed assets;
• depreciation;
• accumulation of funds that are necessary to restore fixed assets;
• replacement of fixed assets through capital investment.

When answering the question of what the fixed capital of an enterprise is, it is worth understanding the concept of fixed capital. This term should be understood as the monetary valuation of fixed assets as material assets, which are designed for a long period of operation.

Natural form of valuation of fixed assets

The fixed assets of an enterprise are resources that require competent management. In turn, it is extremely difficult to manage funds unless they are assessed. Accounting for non-current assets is carried out in cash and in kind.

If we talk about the essence of the natural form of assessment, it is worth noting that it is carried out through an inventory. This is done annually through the efforts of a special commission. The result of this process is the update of data relating to the nomenclature and list of fixed assets by type. This list takes into account the service life and quality condition of the resources.

Data obtained during the inventory process can also be used as a basis for writing off funds.

Monetary form of accounting

It is important to understand that the natural form of accounting alone is not enough for an objective assessment of basic resources. This is explained by the following fact: through its (in-kind) use it is impossible to establish the value of the fund in monetary terms. Since fixed assets are fixed assets that have a certain price, an objective assessment of an enterprise’s resources must include a monetary or cost form of accounting.

If we evaluate the enterprise as a whole and its specific components, in particular using the principles accounting, that is, it makes sense to highlight the following types of cost of fixed assets:

• Initial cost. It implies the price of an object at the moment when it was put into operation at a specific enterprise.
• Cost of reproduction. In this case, it is worth understanding the price in modern conditions of those funds that were created earlier. This may also be the cost of a copy of a property or object that was purchased or recreated at prices current at the time of the inspection.
• Balance sheet. Understanding what the fixed assets of an enterprise are, it is worth paying attention to this form of assessment. Its essence comes down to determining the value of fixed assets at the time of accounting. This takes into account both improvements and wear and tear that have occurred throughout the life of the facility.
• Residual value. This type is characterized by the difference between the amount of depreciation accumulated over the entire period of operation of the resources (improvement that raised the price level of the object is taken into account) and the original cost.

What is the essence of depreciation of fixed assets?

The fact that the fixed assets are resources in use suggests the following: they are subject to wear and tear on a stable basis, which means they become physically obsolete. As for equipment, technological lines and machines, they are also characterized by moral obsolescence, which is understood as the productive, technological and structural irrelevance of such resources. The rate of obsolescence can significantly exceed physical obsolescence. In order to obtain economic compensation for the physical and moral obsolescence of fixed assets, the management of the enterprise is forced to compensate for the decrease in the cost of resources through depreciation charges, which become part of the cost of production.

If we try to describe this process more concisely, we can say that depreciation is a method of including fixed assets throughout their service life in parts in the costs of production products and the subsequent use of these funds in order to reimburse the consumption of funds. For these purposes, the existence of a separate fund is provided - a depreciation fund.

Fixed asset depreciation rate

In essence, this norm is the ratio of the amount of deductions made for depreciation purposes to the cost of fixed assets. This ratio is expressed in the form of a percentage.

Considering that fixed assets are resources that are constantly in use, when calculating depreciation it is necessary to take into account the period of their use. We are talking about the period of time during which fixed assets serve as a means of achieving the goals of the enterprise and generate income for it.

To make depreciation charges, one of several current schemes is used:

• Write-off of cost is proportional to the volume of products produced. The calculation uses the ratio of the initial cost of fixed assets and the volume of production that is expected to be produced over the entire service life to the natural volume of production in the reporting period. It should be noted, when studying the fixed assets, that such write-offs are extremely important for the full functioning of the enterprise.
• Reducing balance method. This scheme for calculating depreciation charges is based on taking into account the residual value of the fixed asset at the beginning of the reporting year and the depreciation rate, for the calculation of which the coefficient of useful acceleration and the indicator of the useful use of the fixed asset are taken.
• Linear. The amount of deductions is determined by the current or original price of the product and the depreciation rate.
• Write-off of cost based on the sum of the numbers of years of useful life. In this case, the original price and the annual ratio are taken into account.

Thus, key function depreciation comes down to the restoration of fixed assets and ensuring production.

Useful life

Speaking about what a fixed asset is, it is necessary to touch in more detail on the operational life of its objects. The concept of useful life is understood as the period of time (estimated) during which the non-current assets operated by the enterprise will allow the production or fulfillment of the expected volume of services or products.

Understanding what a fixed asset is, it is important to understand the following fact: such an approach implies establishing useful life operation taking into account passport data. For example, the specified period of permissible use of a particular structure is 10 years. This means that this indicator should be used in calculations. Although the structure can actually last longer.

This means that during economic calculations, depreciation of fixed assets should not be lower than the estimated amount of funds for the entire period of their useful use.

Fixed assets of an enterprise: example

As a current example of an enterprise's fixed capital, we can use the non-current assets of Monolit LLC. If we divide the fixed assets of this company by type economic activity, then several categories of resources can be identified: manufacturing, mining, production and subsequent distribution of water, gas and electricity.

Taking into account the company’s performance for 2013, it can be noted that among the various categories of fixed resources at that time, vehicles (26.4%) and equipment and machinery (25.8%) predominated. The remaining objects of the fund are distributed in the following percentage ratio: business and production inventory - 23.4%, buildings - 18.7%, other components of fixed assets - 5.8%.

Oil and gas complex

The fixed capital of the oil and gas company enterprise is another shining example non-current assets, but with its own specifics. Typically, the category of structures (bridges, overpasses, canals, dams, etc.) is not included in the group of active basic resources. With the oil and gas complex, everything is different: gas and oil wells are considered as structures, which are the means of producing target products. For this reason, wells belong to the active part of fixed assets.

Moreover, the active part of fixed resources is of key importance in the process of analyzing the use of non-current assets or their provision, because it is its share and value that determine the production capacity of the enterprise. When understanding what a fixed asset is, it is necessary to take this information into account.

The share of the active part of fixed assets in the oil and gas complex is quite high: during gas and oil production it reaches 90%. In pipeline transport this figure is 94%, in drilling - 80%, and in the oil refining industry it exceeds 60%.

It is also important that the efficiency of capital investments in the gas and oil industries is much higher than, for example, in the fuel and other industries. This is explained by the fact that the bulk of investments is directed to the creation of the active part of non-current assets, on which the production of the finished product depends. And if we remember the principle that fixed assets are fixed assets, then the oil and gas complex has the most attractive resource base.

The conclusion is obvious: the fixed assets of an enterprise are a key factor influencing the quality and volume of products, and therefore determine the degree of development of production.