The organization's own capital: composition, sources and formation procedures. Sources of enterprise capital formation

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The sources of the bank's equity capital are the authorized capital, additional capital, reserve fund, and retained earnings of previous years.

Authorized capital credit organization is formed from the amount of deposits of its participants and determines minimum size property guaranteeing the interests of its creditors. For joint-stock banks, it is made up of the nominal value of shares acquired by the founders of the credit organization, and for banks in the form of LLCs and ODOs - from the nominal value of the shares of its founders. Magnitude authorized capital is determined in the founding agreement on the establishment of the bank and its charter. To increase the stability of the banking system, the Bank of Russia has established that the amount of authorized capital required to create a bank must be at least 5 million euros.

Contributions to the bank's authorized capital can be made in the form of cash and tangible assets, and valuable papers a certain type.

The authorized capital of the bank can be formed only at the expense of the own funds of shareholders (participants), attracted cash cannot be used for its formation. Cash deposits into the authorized capital of a credit institution in Russian currency must be transferred from the current accounts of shareholder enterprises (participants). Enterprises and organizations that have an illiquid balance sheet or have been declared insolvent cannot act as founders of banks and purchase their shares during an initial offering.

The founders of banks have the right to pay the authorized capital and in foreign currency, but the authorized capital must be reflected in rubles in the balance sheet.

As tangible asset, contributed in payment of the authorized capital, can only be the bank building (premises) in which the bank is located, with the exception of unfinished construction. In addition, if there is permission from the Board of Directors of the Bank of Russia, participants in an operating bank may pay for its authorized capital with other assets belonging to them that are not cash and a bank building. The maximum share of such assets in the authorized capital is established by the Board of Directors of the Bank of Russia. The maximum size (standard) of the non-monetary part of the authorized capital of the created bank should not exceed 20%.

The founders of the bank must fully pay the authorized capital of the bank they created within one month after its registration.

Extra capital includes: the increase in the value of property during its revaluation, a positive revaluation of securities acquired by the bank and intended for sale, as well as share premium, i.e. the difference between the placement price of shares at issue and their par value. The increase in the value of the bank's property during revaluation and the positive result of the revaluation of securities mean an increase in the value of its net assets and therefore are a source of its own capital.

Reserve fund intended to cover losses and damages arising from the activities of the bank. The minimum size of this fund is determined by the bank's charter. Deductions to the reserve fund are made from the profit of the reporting year remaining at the disposal of the bank after paying taxes and other obligatory payments, i.e. net profit. In this case, the amount of annual contributions to the reserve fund must be at least 5% of net profit until it reaches the minimum value established by the charter. By decision of the bank's board of directors, this fund can be used to cover the bank's losses at the end of the reporting year.

Retained earnings - This is the profit of previous years remaining at the disposal of the bank after paying taxes and paying dividends to shareholders. It can be used at the discretion of the bank for various purposes, including covering unforeseen expenses and losses from core activities.

Each commercial bank independently determines the amount of its own funds and their structure, based on its adopted development strategy. If a bank, subject to the laws of competition, seeks to expand the circle of its clients, including through large enterprises that are in constant need of attracting bank loans, then, naturally, its own capital should increase. The size of a bank's equity capital is also affected by the nature of its active operations. With long-term diversion of resources into risky operations, the bank must have significant equity capital. Its volume determines the competitive position of the bank in the domestic and international markets.

In practice, there are two ways to increase equity capital: accumulating profits and attracting additional capital in the financial market.

Profit accumulation can occur through the accelerated creation of reserve and other bank funds with their subsequent capitalization or through the accumulation of retained earnings from previous years. Last way increasing capital is the cheapest and does not affect the existing management structure of the bank. However, using a significant part of the profit received to increase equity capital means a reduction in current dividends to shareholders and may lead to a fall in the market value of shares of banks created in the form of OJSC.

In the case of directing the bank’s own funds to increase its authorized capital (their capitalization), a decision must be made on the distribution specified funds between the participants in proportion to the number of bank shares already owned by each shareholder.

Raising additional capital by a bank created in the form of an LLC, can occur on the basis of additional contributions to the authorized capital of both its participants and third parties, who thereby become participants in this bank (unless this is prohibited by its charter). Attraction of additional capital by joint-stock banks can be carried out by placing additional shares.

The main source of increasing the equity capital of Russian banks is profit. In 2006, 48.2% of the total increase in banks' own funds was provided through profits and funds generated from them. By attracting additional capital from owners and third parties, a 34.5% increase in equity capital was obtained.

The decision to increase the authorized capital is made by the general meeting of shareholders (participants) or the board of directors of the bank in accordance with its charter. Moreover, such a decision can be made only after registration of the previous change in the amount of its authorized capital. The increase in the authorized capital must be agreed upon with the territorial branch of the Bank of Russia, which controls the legality of participation and payment by participants of their shares (shares) in the capital of the bank. The sale of shares (shares) of a bank to legal entities and individuals in order to increase its authorized capital can be carried out by paying them in cash and at the expense of tangible assets belonging to them.

The above list does not reflect the variety of types of capital used in scientific terminology and practice of financial management. It contains the main classification features.

1.2 Sources of formation of financial resources

Sources of formation financial resources is a set of sources to satisfy additional capital needs for the coming period, ensuring the development of the enterprise.

In principle, all sources of financial resources of an enterprise can be represented in the following sequence:

own financial resources and on-farm reserves (profit, depreciation, cash accumulations and savings of citizens and legal entities, funds paid by insurance authorities in the form of compensation for losses from accidents, natural Disasters and etc.);

borrowed financial resources (bank and budget loans, bond issues and other funds);

raised financial resources (funds received from the sale of shares, shares and other contributions of members labor collectives, citizens, legal entities).

Own and attracted sources of financing form equity enterprises. Amounts raised from outside sources through these sources are generally non-refundable. Investors participate in income from the sale of investments on the basis of shared ownership. Borrowed sources of financing form borrowed capital enterprises.

The financial basis of the enterprise is the equity capital formed by it.

First of all, the company focuses on using internal sources of financing.

Equity may consist of authorized, additional and reserve capital, accumulations of retained earnings and target revenues.

Figure 1 - Composition of the enterprise's equity capital

The organization of authorized capital, its effective use, and management is one of the main and most important tasks of the financial service of an enterprise. Authorized capital- the main source of the enterprise's own funds. The amount of the authorized capital of a joint-stock company reflects the amount of shares issued by it, and state and municipal enterprise- the amount of authorized capital. The authorized capital is changed by the enterprise, as a rule, based on the results of its work for the year after making changes to the constituent documents.

You can increase (decrease) the authorized capital by issuing additional shares (or withdrawing a certain number of them from circulation), as well as by increasing (decreasing) the par value of old shares.

Reserve capital - includes the balances of reserve and other similar funds created in accordance with the law or in accordance with the constituent documents.

TO additional capital relate:

results of revaluation of fixed assets;

share premium of a joint stock company;

cash and material assets received free of charge for production purposes;

budget allocations to finance capital investments;

funds to replenish working capital.

retained earnings this profit received in a certain period and not directed in the process of its distribution for consumption by owners and staff. This part of the profit is intended for capitalization, i.e. for reinvestment in production. In its economic content, it is one of the forms of reserve of the enterprise’s own financial resources, ensuring its production development in the coming period.

Involved funds enterprises - funds provided on a permanent basis, for which income can be paid to the owners of these funds, and which may not be returned to the owners. These include: funds received from the placement of shares of a joint-stock company; shares and other contributions of members of labor collectives, citizens, legal entities to the authorized capital of the enterprise; funds allocated by higher holding and joint-stock companies, government funds provided for targeted investment in the form of subsidies, grants and equity participation; funds of foreign investors in the form of participation in the authorized capital of joint ventures and direct investments of international organizations, states, individuals and legal entities.

The financial basis of the enterprise is the equity capital formed by it. In an operating enterprise, it is represented by the following main forms.

1.Authorized fund. It characterizes the initial amount of the enterprise's equity capital invested in the formation of its assets to begin business activities. Its size is determined (declared) by the charter of the enterprise. For enterprises in certain areas of activity and organizational and legal forms (JSC, LLC), the minimum size of the authorized capital is regulated by law.

2. Reserve Fund ( Reserve capital). It represents a reserved part of the enterprise's own capital, intended for internal insurance of its economic activities. The size of this reserve part of equity capital is determined by the constituent documents. The formation of the reserve fund (capital) is carried out at the expense of the enterprise’s profits (the minimum amount of profit contributions to the reserve fund is regulated by law).

3. Special (target) financial funds. These include purposefully formed funds of own financial resources for the purpose of their subsequent targeted spending. These financial funds usually include a depreciation fund, a repair fund, a wage fund, a special programs fund, a production development fund and others.

4. Retained earnings. It characterizes the part of the enterprise’s profit received in the previous period and not used for consumption by the owners (shareholders, shareholders) and staff. This part of the profit is intended for capitalization, that is, for reinvestment in production development. In terms of its economic content, it is one of the forms of reserve of the enterprise’s own financial resources, ensuring its production development in the coming period.

5. Other forms of equity. These include settlements for property (when leasing it), settlements with participants (for payment of income to them in the form of interest or dividends) and some others, reflected in the first section of the liability side of the balance sheet.

Managing your own capital is associated not only with ensuring the effective use of the already accumulated part of it, but also with the formation of your own financial resources that ensure the future development of the enterprise. In the process of managing the formation of one’s own financial resources, they are classified according to the sources of this formation. The composition of the main sources of formation of own financial resources is shown in Figure 2.

Internal sources

External sources

Profit remaining at the disposal of the enterprise

Attracting additional share or equity capital

Depreciation charges from used fixed assets and intangible assets

Other external sources of equity capital formation

Other internal sources of equity capital formation

Receipt of free financial assistance by an enterprise

Figure 2 - Composition of the main sources of formation of the enterprise’s own financial resources.

Included internal sources of formation of own financial resources the main place belongs to the profit remaining at the disposal of the enterprise - it forms the predominant part of its own financial resources, ensures an increase in equity capital, and, accordingly, an increase in the market value of the enterprise. Depreciation charges also play a certain role in the composition of internal sources, especially in enterprises with a high cost of their own fixed assets and intangible assets; however, they do not increase the amount of the enterprise’s own capital, but are only a means of reinvesting it. Other internal sources do not play a significant role in the formation of the enterprise's own financial resources.

Included external sources of equity capital formation the main place belongs to the enterprise's attraction of additional share (through additional contributions of funds to the authorized capital) or joint-stock (through additional issue and sale of shares) capital. For individual enterprises, one of the external sources of formation of their own financial resources may be the gratuitous financial assistance provided to them (as a rule, such assistance is provided only to individual state-owned enterprises at various levels). Other external sources include tangible and intangible assets transferred to the enterprise free of charge and included in its balance sheet.

1.3 Stages of the policy of formation of equity capital

The basis for managing an enterprise's own capital is managing the formation of its own financial resources. In order to ensure effective management of this process, the enterprise usually develops a special financial policy aimed at attracting its own financial resources from various sources in accordance with the needs of its development in the coming period.

The policy of forming its own financial resources is part of the overall financial strategy of the enterprise, which consists in ensuring the necessary level of self-financing of its production development. This policy includes the following main stages:

analysis of the formation and use of own financial resources in the base period;

determination of the total need for them for the upcoming (forecast) period (quarter, year);

assessment of the cost of raising equity capital from various sources;

ensuring the maximum volume of attraction of own financial resources from internal and external sources;

optimization of the ratio of internal and external sources of their formation.

Let us reveal in more detail the content of each stage:

1. The purpose of analyzing the formation of own financial resources in the base period is to establish the financial potential for the future development of the corporation. At the first stage of the analysis, the following is studied: the correspondence of the growth rate of profit and equity capital to the growth rate of assets (property) and sales volume; dynamics of the share of own sources in the total volume of financial resources. It is advisable to compare these parameters over a number of periods. Profit should increase at a faster rate than other parameters. This means that production costs should decrease, sales revenue should increase, and equity capital and assets should be used more efficiently by accelerating their turnover.

The main source of financing is equity (Figure 3.2). It includes authorized, accumulated capital (reserve and additional capital, retained earnings) and other income (targeted financing, charitable donations, etc.).

Rice. 3.2. Composition (sources of formation) of the enterprise’s own capital

Authorized capital- this is the amount of funds of the founders to ensure statutory activities. At state-owned enterprises, this is the value of property assigned by the state to the enterprise with the rights of full economic management; at joint-stock enterprises - the nominal value of shares; for limited liability companies - the sum of the owners' shares; for a rental enterprise - the amount of contributions of its employees, etc. The authorized capital is formed in the process of initial investment of funds. Contributions of founders to the authorized capital can be in the form of cash, property and intangible assets. The amount of the authorized capital is announced upon registration of the enterprise, and when adjusting its value, re-registration of the constituent documents is required.

When creating an enterprise, the authorized capital is used to purchase fixed assets and form working capital in the amounts necessary to conduct normal production and economic activities, licenses, patents, know-how, the use of which is an important income-generating factor. Thus, the initial capital is invested in production, in the process of which value is created, expressed by the price of products sold.

Extra capital as a source of funds for an enterprise, it is formed as a result of the revaluation of property or the sale of shares above their nominal value.

Reserve capital is created in accordance with legislative acts or constituent documents at the expense of the net profit of the enterprise. It is an insurance fund to compensate for possible losses and ensure the protection of the interests of third parties if the profit to repurchase shares, repay bonds, or pay interest on them is not enough. Its value is used to judge the financial strength of the enterprise. The absence or insufficient value is considered as a factor of additional investment risk.

Retained earnings (uncovered loss) of the reporting period is reflected in the balance sheet as a cumulative total from the beginning of the year. After distribution, its balance is added to the balance of retained earnings from previous years.

To special purpose funds and targeted financing These include values received free of charge from individuals and legal entities, as well as non-refundable and repayable budget allocations for the maintenance of social and cultural facilities and restoration of the solvency of enterprises receiving budgetary funding.

The formed fixed capital needs to be replenished in the process of carrying out economic activities. There are internal and external sources of replenishment of equity capital. Sources of replenishment of equity capital are presented in Fig. 3.3. If the company is unprofitable, equity capital is reduced by the amount of losses received.

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TOURSOVAYAJOB

by discipline: " Financial management"

on the topic: "Equity capital of an organization: composition, sources and formation procedures"

INCONTROL

The development of market relations in society has led to the emergence of a number of new economic objects of accounting and analysis. One of these objects is the capital of an enterprise - the most important economic category and, in particular, equity capital, the significance of which for the viability and financial stability of the enterprise is so great that it has received legislative recognition in the Civil Code of the Russian Federation (requirements for the minimum amount of the Authorized Capital; the ratio of the Authorized Capital and net assets; the possibility of paying dividends depending on the ratio of net assets and the amount of authorized and reserve capital).

Indicators characterizing the financial condition of the enterprise are important. The net worth estimate serves as the basis for calculating most of them. Accounting for equity capital is an important area in the system accounting(the main characteristics of the enterprise’s own sources of financing are formed).

This topic becomes relevant great importance in new economic conditions, since the enterprise’s own capital is the basis of its independence, and this is especially important in the conditions of current economic instability and increased competition. Any enterprise cannot exist without its own financial resources. As you know, one of the main components of these resources is the authorized capital; it determines the minimum size of the enterprise’s property and is the first and mandatory condition for the normal operation of any enterprise.

primary goal course work is the study of an organization's equity capital. I will try to understand this topic in detail by studying:

The concept of an enterprise's own capital;

Composition and structure of the enterprise's equity capital;

Sources and procedures for forming the enterprise's own capital.

1. CONCEPT,COMPOUNDAND STRUCTUREOWNORGANIZATION'S CAPITAL

1.1 Capital

Capital is the means available to a business entity to carry out its activities in order to make a profit.

Regardless of the organizational and legal forms of ownership, each organization must have economic resources - capital, to carry out financial and economic activities. The capital of an enterprise characterizes the total value of funds in monetary, tangible and intangible forms invested in the formation of its assets. This characterizes the direction of investment.

Capital is the opportunity and set of forms of mobilizing financial resources to make a profit. Its characteristics can be noted as:

1. The capital of an enterprise is the main factor of production. In the system of factors of production, it has a priority role, because it combines all factors into a single production complex.

2. Capital characterizes the financial resources of an enterprise that generate income. IN in this case it can act in isolation from the production factor in the form of invested capital.

3. Capital is the main source of wealth formation for its owners. Part of the capital in the current period leaves its composition and ends up in the “pocket” of the owner, and the accumulated part of the capital ensures the satisfaction of the needs of the owners in the future.

4. The capital of an enterprise is the main measure of its market value. First of all, this quality is represented by the enterprise’s own capital, which determines the volume of its net assets. The volume of equity capital used by the enterprise simultaneously characterizes the potential for it to attract borrowed funds, ensuring additional profit. In combination with other factors, it forms the basis for assessing the market value of the enterprise.

5. The dynamics of an enterprise's capital is the most important indicator of the level of efficiency of its economic activities.

Basically, capital , being an economic resource, it is a combination of equity and borrowed capital necessary to carry out the financial and economic activities of the organization.

Borrowed capital is cash or other property assets raised for the needs of enterprise development on a repayable and paid basis (credits, borrowings and accounts payable).

Equity capital is the total value of the enterprise's funds, owned by it by right of ownership, and used by it to form a certain part of the assets. Assets formed from equity capital invested in them appear in the form of net assets of the enterprise. Own capital is the total material assets and cash, financial investments and costs for the acquisition of rights and privileges necessary to carry out its business activities.

Equity capital, like borrowed capital, cannot be directly attributed to certain assets. Capital on the balance sheet can be in a concrete or abstract form as a value or as a reminder item: on the one hand, the equivalent of equity capital was or should be directed to investment and accordingly associated with any objects in the asset balance sheet, on the other hand, reflected in the liability The balance sheet of the equity account reminds of the funds placed at the disposal of the organization by its founders, which are no longer at the disposal of the organization as financial assets. These funds could be provided by the founders when the organization was formed in cash or in the form of other property, or they were based on the organization’s retained earnings.

Consequently, the organization's own capital either comes from outside or is formed through hoarding (accumulation of profit).

1.2 Concept of equity

We have already found out that any enterprise cannot exist without its own financial resources, and equity capital is one of the main components of these resources - this is the totality of material assets and funds, financial investments and costs for acquiring the rights and privileges necessary to implement it economic activity.

Equity capital characterizes the total value of the enterprise's funds owned by it and used by it to form a certain part of the assets. The part of the asset formed from the equity capital invested in them represents net assets enterprises. Equity capital includes sources of financial resources that are different in their economic content, principles of formation and use: authorized capital, additional capital, and reserve capital. In addition, the equity capital, which a business entity can operate without reservations when making transactions, includes retained earnings; special purpose funds and other reserves.

Own capital of the organization as a legal entity in general view determined by the value of property owned by the organization. These are the so-called net assets of the organization. They are defined as the difference between the value of property (active capital) and borrowed capital. Of course, equity capital has a complex structure. Its composition depends on the organizational and legal form of the business entity.

From a financial and economic point of view, based on variability, one can distinguish constant and variable components of equity capital. The permanent components of the enterprise's own capital include the authorized capital, which is always (even if it is partially paid) determined by a constant value and remains unchanged until the general meeting of shareholders makes a decision to increase or decrease it. It is precisely because of the variability of the authorized capital determined by the decision of the shareholders’ meeting that equity capital can be considered “conditionally” constant.

In contrast to the “conditionally” constant authorized capital, the variable components of equity capital, as a rule, change from year to year. Variable components of equity capital include reserve funds and financial results of the organization. Their changes are determined by the obtained financial result, as well as corresponding decisions on the distribution of profits and contributions to accumulation funds.

Own capital performs five important functions:

1. Operating function or continuity function;

2. Responsibility function;

3. Damages function;

4. Profit sharing function;

5. Organization management function.

Continuity function is that “conditionally” constant equity capital, in contrast to borrowed capital, is placed at the disposal of the enterprise without any time restrictions and ensures the continuity of its economic activities. Due to the unlimited period of provision, capital can be used for long-term financing of the economic activities of the enterprise, which is where its operational function is manifested, allowing the enterprise to respond to emerging opportunities for making risky investments for which it is impossible to obtain borrowed capital.

Responsibility Function of the enterprise's own capital is that it is liable for debts with all its property, while the founders are liable only to the extent of their own share in the authorized capital.

Damage compensation function the enterprise's own capital is associated with the responsibility function. The enterprise's own capital plays the role of a buffer, mitigating the impact of losses resulting from the excess of expenses of the reporting period over income. Losses can be compensated by using reserve funds or reducing the authorized capital. Since the function of compensation for losses and the function of liability serve primarily to protect the interests of the creditors of the enterprise, since there are a number of provisions and regulations that describe the implementation of these functions. If the amount of accumulated losses exceeds the enterprise's equity capital, then the signs of a formal excess of liabilities over assets are met. It is necessary to distinguish the legal excess of liabilities over assets, which serves as the beginning of the bankruptcy procedure of an enterprise, from the formal one. Legal grounds for starting bankruptcy proceedings arise when such an excess occurs in the liquidation balance sheet. If the company has exhausted the possibilities of using reserve funds and even authorized capital, then this is the beginning of the opening of bankruptcy proceedings.

The greater the amount of equity capital of the enterprise, the greater the amount of losses that can be covered by it and the more time management receives to take appropriate measures to eliminate losses in the future. The compensation function may lead to infringement of the rights of the founders. This risk is mitigated by the right to participate in the profits of the enterprise (profit-sharing function) and the enterprise management function.

Profit sharing function gives the shareholder or founder of the enterprise the right to receive a part of the profit in proportion to his share in the authorized capital.

Control function of a joint-stock company is strictly limited to the general meeting of shareholders, that is, an individual shareholder can participate in decision-making only indirectly by appointing and recalling members of the supervisory board and using his right of approval on major decisions.

The ability of equity capital to self-expand at a high rate characterizes high level formation and effective distribution of enterprise profits, its ability to maintain financial balance from internal sources. At the same time, a decrease in equity capital is, as a rule, a consequence of ineffective, unprofitable activities of the enterprise.

1.3 CompoundAndstructureequity

Equity capital (the total amount of funds belonging to the enterprise) consists of the authorized capital (invested by the owners of the enterprise during its creation) and funds accumulated in the process of economic activity.

Own fixed capital is capital invested in fixed assets, intangible assets, construction in progress, long-term investments.

Own working capital is capital invested in stocks of raw materials and materials, inventories finished products, current accounts receivable.

In the process of economic activity, there is a constant turnover of capital: it successively changes the monetary form to the material form, which in turn changes, taking various shapes products, goods and others, in accordance with the conditions of the production and commercial activities of the organization, and, finally, capital is again converted into cash, ready to begin a new circulation.

The owners are legal entities and individuals, a group of investors-shareholders or a corporation of shareholders. The authorized capital, formed as part of the share capital, most fully reflects all aspects of the organizational and legal basis for the formation of equity capital. Let's highlight the forms of functioning of an enterprise's own capital.

Own capital consists of authorized, additional and reserve capital; retained earnings and target (special) funds. Commercial organizations operating on the principles of a market economy, as a rule, own collective or corporate property.

Own capital consists of:

1. Authorized capital characterizes the initial amount of the enterprise's equity capital invested in the formation of its assets to begin business activities. Its size is determined (declared) by the charter of the enterprise. For enterprises in certain areas of activity and organizational and legal forms (joint stock company, limited liability company), the size of the authorized capital is regulated by law. The authorized capital in this case is a set of contributions (calculated in monetary terms) of shareholders to the property when creating an enterprise to ensure its activities in the amounts determined by the constituent documents. Due to its stability, the authorized capital, as a rule, covers the most illiquid assets, such as land rent, the cost of buildings, structures, and equipment.

The organization of authorized capital, its effective use, and management is one of the main and most important tasks of the financial service of an enterprise. Authorized capital is the main source of the enterprise's own funds. The amount of the authorized capital of a joint-stock company reflects the amount of shares issued by it, and of a state and municipal enterprise - the amount of the authorized capital. The authorized capital is changed by the enterprise, as a rule, based on the results of its work for the year after making changes to the constituent documents.

2. Reserve capital represents a reserved part of the enterprise's equity capital intended for internal insurance of its economic activities. The size of this reserve part of equity capital is determined by the constituent documents. The formation of a reserve fund (reserve capital) is carried out at the expense of the enterprise’s profits (the minimum amount of profit contributions to the reserve fund is regulated by law).

A reserve fund is created in the company in the amount provided for by the company's charter, but not less than 15 percent of its authorized capital. The company's reserve capital is formed through mandatory annual contributions until it reaches the amount established by the company's charter. The amount of annual contributions is provided for by the company's charter, but cannot be less than 5 percent of net profit until the amount established by the company's charter is reached. The company's reserve capital is intended to cover losses, as well as to repay the company's bonds and repurchase the company's shares in the absence of other funds. Reserve capital cannot be used for other purposes.

3. Dsurplus capital shows the increase in the value of property as a result of revaluations of fixed assets and unfinished construction of the organization, carried out by decision of the government, received funds and property in the amount of excess of their value over the value of shares transferred for them, and more. Additional capital can be used to increase the authorized capital, repay the balance sheet loss for the reporting year, and also be distributed among the founders of the enterprise and for other purposes. In this case, the procedure for using additional capital is determined by the owners, as a rule, in accordance with the constituent documents when considering the results of the reporting year.

Additional capital includes:

· results of revaluation of fixed assets;

· share premium of the joint-stock company;

· cash and material assets received free of charge for production purposes;

· budget allocations to finance capital investments;

· funds to replenish working capital.

4. retained earnings this is net profit (or part of it) not distributed in the form of dividends among shareholders (founders) and not used for other purposes. Typically, these funds are used to accumulate the property of a business entity or replenish its working capital in the form of free sums of money, that is, ready for a new turnover at any moment. Retained earnings can increase from year to year, representing an increase in equity capital based on internal accumulation. In growing, developing joint stock companies, retained earnings take up leading place among the components of equity capital. Its amount is often several times the size of the authorized capital.

Retained earnings are intended for capitalization, that is, for reinvestment in production. In its economic content, it is one of the forms of reserve of the enterprise’s own financial resources, ensuring its production development in the coming period.

5. Target (special) funds are created at the expense of the net profit of a business entity and must serve for certain purposes in accordance with the charter or decision of shareholders and owners. These funds are a type of retained earnings. In other words, this is retained earnings that have a strictly designated purpose.

When asking the question of what equity means represent in the activities of a modern enterprise, it is necessary to note that, along with solving purely financial issues, it is necessary to simultaneously consider the reliability of the “controllability” of the enterprise in the hands of the owner. The fact is that with an additional issue of common shares, you can simultaneously lose control over the activities of the enterprise - this applies to a joint-stock company; raising funds in the form of long-term bonds (for a period of more than 5 years) can significantly increase the risk of bankruptcy of the enterprise in the future.

In order for an enterprise to function normally, it is necessary to carefully analyze its financial activities, identify problems and find ways out of them. In fact, the basis of an enterprise’s finances should be its own resources, otherwise, based only on attracted (borrowed) funds, it faces collapse and bankruptcy. Indeed, in this case, the enterprise simply will not be able to pay off its obligations and continue to freely engage in its production activities.

Unfortunately, nowadays most enterprises exist mainly due to borrowed money, having their own financial resources of less than 30-40% of their total. Gradually, these business entities are susceptible to slowly, and sometimes even very quickly, “getting bogged down in debt” to creditors, suppliers, and so on.

2. SOURCESORGANIZATION'S OWN CAPITAL

2.1 Sources of formation of equity capital

The sources of formation of financial resources are a set of sources to satisfy the additional need for capital for the coming period, ensuring the development of the enterprise.

The structure of sources of formation of assets (funds) is represented by the main components: equity capital and borrowed (attracted) funds.

All sources of financial resources of an enterprise can be represented in the following sequence:

· own financial resources and on-farm reserves;

· borrowed funds;

· attracted financial resources.

Own and attracted sources of financing form the equity capital of the enterprise. Amounts raised from outside sources through these sources are generally non-refundable. Investors participate in the income from the sale of investments on the basis of shared ownership.

Borrowed sources of financing form the borrowed capital of the enterprise. Borrowed capital is loans from banks and financial companies, loans, accounts payable, leasing, commercial paper, and so on. It is divided into long-term (more than a year) and short-term (up to a year).

Borrowed capital characterizes the part of the enterprise's assets that are financed by its creditors of all types. The borrowed capital of an enterprise can be formed from external and internal sources.

The main external sources of formation of borrowed capital of enterprises include:

· bank (financial) loans;

· funds raised as a result of the issue of bonds;

· commercial loans.

IN modern conditions For the majority of enterprises, the problem of choosing sources of financing their activities is acute. The total amount of funds that must be paid for attracting and using a certain volume of financial resources, expressed as a percentage of this volume, is called the price of capital. The concept of such an assessment is based on the fact that capital, as one of the important factors of production, has, like its other factors, a certain value that forms the level of operating and investment costs of the enterprise.

Let's consider the main areas of use of the cost of capital indicator in the activities of an enterprise:

1. The cost of capital of an enterprise serves as a measure of operating profitability. Since the cost of capital characterizes the part of the profit that must be paid for the use of generated or attracted new capital to ensure the production and sale of products, this indicator acts as the minimum standard for generating the operating profit of an enterprise, the lower limit when planning its size.

2. The cost of capital indicator is used as a critical indicator in the process of real investment. First of all, the level of capital cost of a particular enterprise acts as a discount rate at which the amount of net cash flow is reduced to present value in the process of assessing the effectiveness of individual real projects. It also serves as a basis for comparison with the internal rate of return for the investment project under consideration: if it is lower than the enterprise’s cost of capital, such investment project should be rejected.

3. The cost of capital of an enterprise serves as a basic indicator of the effectiveness of financial investment.

4. The indicator of the cost of capital of an enterprise acts as a criterion for making management decisions regarding the use of rent (leasing) or the acquisition of ownership of production fixed assets.

5. The indicator of the cost of capital in the context of its individual elements is used in the process of managing the structure of this capital on the basis of the mechanism of financial leverage, the art of using which lies in the formation of its highest differential, one of the components of which is the cost of borrowed capital. Minimization of this component is ensured in the process of assessing the cost of capital attracted from various borrowed sources and forming an appropriate structure of sources for its use by the enterprise.

6. The level of the cost of capital of an enterprise is the most important measure of the level of market value of this enterprise. A decrease in the level of capital value leads to a corresponding increase in the market value of the enterprise and vice versa.

7. The cost of capital indicator is a criterion for assessing and forming the appropriate type of policy for an enterprise to finance its assets (primarily current assets). Based on the real cost of the capital used and the assessment of its upcoming change, the enterprise forms an aggressive, moderate (compromise) or conservative type of asset financing policy.

The process of assessing the cost of capital is based on the following basic principles:

· The principle of preliminary element-by-element assessment of the cost of capital. Since the capital used by an enterprise consists of heterogeneous elements, in the valuation process it must be decomposed into individual constituent elements, each of which must be the object of valuation calculations.

· The principle of a general assessment of the cost of capital. An element-by-element assessment of the cost of capital serves as a prerequisite for the general calculation of this indicator. This general indicator is the weighted average cost of capital.

· The principle of comparability of valuation of equity and borrowed capital. In the process of assessing the cost of capital, it should be borne in mind that the amounts of equity and borrowed capital used, reflected in the liability side of the enterprise’s balance sheet, have a disparate quantitative value. If the borrowed capital provided for use by an enterprise in monetary or commodity form is valued at an amount close to market prices, then the equity capital reflected in the balance sheet in relation to the current market value is, as a rule, significantly underestimated. To ensure comparability and correctness of calculations of the weighted average cost of capital, the amount of its own part must be expressed in the current market valuation.

· The principle of dynamic assessment of the cost of capital. The factors influencing the weighted average cost of capital are very dynamic, therefore, as the cost of individual elements of capital changes, adjustments must be made to its weighted average value. In addition, the principle of dynamic assessment assumes that it can be carried out both for already formed and for capital planned for formation (attraction).

· The principle of the relationship between the assessment of the current and future weighted average cost of capital of an enterprise. This relationship is ensured by using the marginal cost of capital indicator. It characterizes the level of cost of each new unit additionally attracted by the enterprise. At each stage of the enterprise's development, attracting additional capital to an enterprise, both from its own and from borrowed sources, has its own economic limits and, as a rule, is associated with an increase in its weighted average cost. Therefore, the dynamics of the marginal cost of capital indicator must be taken into account in the management process financial activities enterprises. By comparing the marginal cost of capital with the expected rate of profit for individual business operations that require additional capital, it is possible to determine in each specific case a measure of the effectiveness and feasibility of such operations. This primarily applies to investment decisions made.

· The principle of determining the boundaries of the effective use of additionally attracted capital. The assessment of the cost of capital must be completed by developing a critical indicator of the effectiveness of its additional attraction. This indicator is the marginal efficiency of capital. This indicator characterizes the ratio of the increase in the level of profitability of additionally attracted capital and the increase in the weighted average cost of capital.

The stated principles of assessment make it possible to form a system of basic indicators that determine the cost of capital and the boundaries of its effective use. Among the indicators considered, the main role belongs to the weighted average cost of capital indicator. It develops at the enterprise under the influence of many factors, the main of which are:

a) the average interest rate prevailing in the financial market, availability various sources financing (bank loans, commercial loans, own issue of shares and bonds, and so on);

b) industry characteristics of operating activities, which determine the duration of the operating cycle and the level of liquidity of the assets used;

c) the ratio of the volumes of operating and investment activities;

d) life cycle of the enterprise;

e) the level of risk of the operating, investment and financial activities carried out.

These factors are taken into account in the process of targeted management of the cost of equity and debt capital of the enterprise.

There is an explicit and implicit price of capital. This is the price at which costs are determined exactly ( interest rates on loans and borrowings, coupon income on bonds, and so on) and inaccurately (authorized capital, retained earnings, funds and reserves of the enterprise, that is, there is no fixed and direct payment for the use of capital). Let's assume that the price of equity capital is an implicit price: for a joint stock company, dividends are an outflow of cash (costs), and for shareholders it is an income. Dividends are transaction costs of raising capital in the stock market. Calculating the transaction costs of an enterprise minus the costs associated with attracting borrowed sources of financing (credits, borrowings, issuing bonds, paying for leasing and factoring operations, tax credits, fines, etc.) allows us to determine the cost of the process of creating normal conditions for the functioning of the main production.

As part of equity capital, two main components can be distinguished: invested capital, that is, capital invested by the owners in the enterprise and accumulated capital - capital created in the enterprise in excess of what was initially advanced by the owners.

Invested capital includes the par value of common and preferred shares, as well as additionally paid (in excess of the par value of the shares) capital. This group usually includes valuables received free of charge. The first component of the invested capital is presented in the balance sheet Russian enterprises authorized capital, the second - additional capital (in terms of the share premium received), the third - additional capital or social fund (depending on the purpose of using the gratuitously received property).

Accumulated capital reflected in the form of items arising as a result of the distribution of net profit (reserve capital, accumulation fund, retained earnings, other similar items). Despite the fact that the source of formation of individual components of accumulated capital is net profit, the goals and order of formation, directions and possibilities of using each of its articles are significantly different. These items are formed in accordance with legislation, constituent documents and accounting policies.

equity value

2.2 Division of form sourcesequity capital

All sources of equity capital formation can be divided into internal and external:

· Among the internal sources of formation of own financial resources, the main place belongs to the profit remaining at the disposal of the enterprise; it forms the predominant part of its own financial resources, ensures an increase in equity capital, and, accordingly, an increase in the market value of the enterprise. Depreciation charges also play a certain role in the composition of internal sources, especially in enterprises with a high cost of their own fixed assets and intangible assets; however, they do not increase the amount of the enterprise’s own capital, but are only a means of reinvesting it. Other internal sources do not play a significant role in the formation of the enterprise's own financial resources.

· Among the external sources of formation of its own financial resources, the main place belongs to the enterprise’s attraction of additional contributions to the authorized capital or through additional issue and sale of shares. For individual enterprises, one of the external sources of formation of their own financial resources may be the gratuitous financial assistance provided to them (as a rule, such assistance is provided only to individual state enterprises of different levels). Other external sources include tangible and intangible assets transferred to the enterprise free of charge by physical and legal entities as a charity.

3. FORMATION PROCEDURESOWNCAPITALORGANIZATIONS

The formation of its own financial resources is part of the overall financial strategy of the enterprise, which consists in ensuring the necessary level of self-financing of its production development.

The development of the formation of the enterprise’s own financial resources is carried out according to the following main stages:

1. Analysis of the formation of the enterprise’s own financial resources in the previous period.

The purpose of this analysis is to identify the potential for the formation of own financial resources and its compliance with the pace of development of the enterprise:

· we study, first of all, the total volume of formation of own financial resources, the correspondence of the rate of growth of own capital with the rate of growth of assets and the volume of products sold by the enterprise, the dynamics of the share of own resources in the total volume of formation of financial resources in the pre-planned period;

· at the next stage, the sources of formation of own financial resources are considered. First, the ratio of external and internal sources of formation of own financial resources is studied, as well as the cost of attracting equity capital from various sources;

· at the final stage of the analysis, the sufficiency of the company’s own financial resources generated in the pre-planning period is assessed. The criterion for such an assessment is the indicator “self-financing coefficient of enterprise development”. Its dynamics reflect the tendency for the development of the enterprise to be provided with its own financial resources.

2. Determining the total need for your own financial resources can be calculated using the following formula:

POFR = - SKN - PR

where POFR is the total need for the enterprise’s own financial resources in the planning period;

PC - total capital requirement at the end of the planning period;

USK - the planned share of equity capital in its total amount;

SKN - the amount of equity capital at the beginning of the planning period;

PR - the amount of profit allocated for consumption in the planning period.

3. The assessment of the cost of attracting equity capital from various sources is carried out in the context of the main elements of equity capital generated from internal and external sources. The results of such an assessment form the basis for the development of management decisions regarding the selection of alternative sources for the formation of own financial resources that ensure an increase in the enterprise’s own capital.

4. Ensuring the maximum volume of attraction of own financial resources from internal sources.

Before turning to external sources for the formation of your own financial resources, it is necessary to realize all the possibilities of their formation from internal sources. The main planned internal sources of formation of the enterprise’s own financial resources are: the amount of net profit and depreciation charges. First of all, in the process of planning these indicators, it is necessary to provide for the possibility of their growth due to various reserves. The method of accelerated depreciation of the active part of fixed assets increases the possibility of generating one’s own financial resources from this source. However, it should be remembered that the increase in the amount of depreciation charges in the process of accelerated depreciation individual species fixed assets leads to a corresponding decrease in the amount of net profit.

5. Ensuring the required volume of attracting own financial resources from external sources.

The volume of attraction of own financial resources from external sources is intended to ensure that part of them that could not be formed through internal sources of financing. If the amount of own financial resources attracted from internal sources fully satisfies the total need for them in the planning period, then there is no need to attract these resources from external sources. Ensuring that the need for own financial resources is met from external sources is planned by attracting additional share capital (owners or other investors), additional issue of shares or through other sources.

6. Optimization of the ratio of internal and external sources of formation of own financial resources.

This optimization process is based on the following criteria:

· ensuring the minimum total cost of attracting own financial resources. If the cost of attracting your own financial resources from external sources exceeds the planned cost of raising borrowed funds, then such formation of your own resources should be abandoned;

· to ensure that the management of the enterprise is maintained by its original founders. The growth of additional share or share capital at the expense of third-party investors may lead to a loss of such controllability.

The effectiveness of the developed policy for the formation of own financial resources is assessed using the coefficient of self-financing of enterprise development in the coming period. Its level must correspond to the goal.

Thus, the formation of an investment policy, as part of the overall financial strategy of an enterprise, is an important multi-stage process aimed at ensuring the necessary level of self-financing of its production

CONCLUSION

In the process of writing my course work, I came to the following conclusion:

Equity is financial basis enterprise, and knowledge of how to manage it correctly is the key to the future development of the enterprise, its financial stability, and, therefore, receiving the expected profit from the company’s activities.

We found out that equity is a set of economic relations that make it possible to include financial resources belonging either to the owners or to the economic entity itself into economic circulation.

Equity capital is a combination of material assets and cash, financial investments and costs for the acquisition of rights and privileges necessary for the implementation of its economic activities.

Own capital is characterized by the following main positive features:

1. Ease of attraction, since decisions related to increasing equity capital (especially through internal sources of its formation) are made by the owners and managers of the enterprise without the need to obtain the consent of other economic entities.

2. Higher ability to generate profit in all areas of activity, since its use does not require payment of loan interest in all its forms.

The ratio between own and borrowed sources of funds serves as one of the key analytical indicators characterizing the degree of risk of investing financial resources in a given enterprise. One of the most important characteristics the financial condition of an enterprise is the stability of its activities in the light of a long-term perspective. It is related to the overall financial structure of the enterprise, the degree of its dependence on creditors and investors.

In an enterprise, equity capital is represented by such forms as authorized capital, reserve capital, borrowed capital, special financial funds, retained earnings and other reserves. Each of these forms is characterized and each of them has its own characteristics and sources of formation.

To ensure effective management of the process of forming its own financial resources, the enterprise is developing a special financial policy aimed at attracting its own financial resources from various sources in accordance with the needs of its development in the coming period; such a policy is the policy of forming its own financial resources.

The development of a policy for the formation of an enterprise’s own financial resources is carried out in stages. We have established the composition and structure of the main sources of formation of the enterprise’s own financial resources.

In the new economic conditions of economic instability and increased competition, it is important for enterprises to monitor the state of their own capital, increasing it whenever possible, since the equity capital of an enterprise is the basis of its independence. Management needs to develop and implement a competent policy for the formation of its own financial resources, which will ensure a stable financial position for the enterprise.

LITERATURE

1. Blank I.A. Management of capital formation - Kyiv, Nika-Center, 2008.

2. Blank I.A. Financial management - Kyiv, Nika - Center, 2008

3. Galitskaya S.V. Financial management. The financial analysis. Enterprise Finance: Textbook for Universities - Moscow, EKSMO, 2008.

4. Tikhomirov E.F. Financial management. Enterprise financial management: Tutorial for universities, 2nd edition - Moscow, Academy, 2008

5. Grachev A.V. Growth of equity capital, financial leverage and solvency of the enterprise, Financial Management, 2009.

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The organization's own capital: composition, sources and formation procedures. Sources of enterprise capital formation

1.2 Sources of formation of financial resources

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