The assets of the enterprise are reduced by liabilities. Organizational assets and liabilities

Assets and liabilities are concepts that appear very often in people's economic lives. As you know, they are the most important categories of accounting. Meanwhile, understanding the practical essence of these terms can be useful in everyday life. It is important for any business entity to have a clear understanding of what assets and liabilities are, how to correctly classify them, and why a balance is always maintained between them. This knowledge will help you manage your own finances wisely and use personal funds with the greatest efficiency.

Important nuance! In the modern information space, one can find two interpretations that define the essence of assets and liabilities. The first – accounting – characterizes these concepts from the point of view of the balance sheet. The second - investment - appeared in business slang at the suggestion of Robert Kiyosaki, whom many know as a successful investor and popular business consultant.

Of course, both approaches to determining assets and liabilities deserve special attention. It is necessary to consider them as simply and clearly as possible - with examples that are close to most people engaged in business activities or related to investing, financial management, and accounting.

The concept of assets and liabilities: the investment approach of Robert Kiyosaki

According to Robert Kiyosaki, a world-famous business coach, the assets of a business entity should be considered financial investments that consistently generate passive income. An investment consultant includes liabilities and other encumbrances of a business entity that force it to regularly incur certain expenses. Of course, although such definitions explain the essence of these categories in an accessible, popular form, they require specific examples from practice.

Assets - investment approach

Thus, assets should be understood as any investments that meet at least one of two criteria:

1. Allow the investor to receive systematic passive income.
2. They gradually increase their own value over time.

Practice shows that the most preferred assets for most citizens are the following investments:

1. Deposits opened in reliable banks on favorable terms. Such deposits bring the investor a stable interest income.
2. Reliable bonds- debt securities . The source of earnings is coupon income, regularly accrued to the investor over a certain period of time. Such payments are often made every six months, or alternatively quarterly or annually.
3. Dividend shares– equity securities. Profit from such investments is generated in two main directions. The first is an increase in market value, the stock price, which certifies that the investor has a certain share (part) in the capital of the issuing company. The second is annual dividends paid to the investor in accordance with his share (part) in the share capital.
4. Immovable objects. Such investments are rightly considered the most reliable options for generating income in the long term. First, the value of these assets tends to increase over time. Secondly, rental income from premises can provide the investor with a good platform for financial well-being.
5. Investments in various trust management instruments(Mutual funds and other assets). Everything is simple here: funds are transferred under an agreement to professional managers who use them to generate income (usually investing in equity and debt securities). The profit received is subsequently distributed between investors and trustees.
6. Compensable receivables, that is, funds loaned to third parties for a certain fee, which is the income of the lender.
7. Investments directly related to the acquisition of valuable assets in anticipation of a future increase in their market value. These can include precious metals in various forms, art and collectibles.

Liabilities - investment approach

Accordingly, the following positions can be classified as liabilities:

1. Targeted housing loans – mortgage loans.
2. Consumer loans issued by a citizen for the purchase of any material goods, entertainment, tourist trips.
3. Any property that does not generate income for the owner.
4. Any accounts payable (money borrowed).

Asset or liability - a clear example

For example, a citizen has an amount equal to 3 (three) million rubles. The thing is that he can use these funds in different ways.

• Alternatively, there is a possibility purchase living space - apartment, in good condition and located in a good, convenient area. Liquid real estate that is in stable demand can always be sold at a favorable price. In addition, such housing can be easily rented out for temporary use for a good fee, which will provide the owner (landlord) with passive income.

Having made this acquisition, the investor rents out the real estate. Monthly rent – ​​20,000 rubles. In a year you get 240,000 rubles - passive income. If this amount is reduced by the amount of utility costs and other current costs, you will get approximately 180,000 rubles - net income from the provision of your own housing for rent. It should also be taken into account that the cost of purchased living space is likely to gradually increase due to inflation processes and other factors. An increase in the rental amount in the future cannot be ruled out. Thus, the purchased apartment became an income-generating asset.

• Another scenario is to spend 3 (three) million rubles for the purchase of a new executive car in a prestigious showroom. After leaving the car dealership, the vehicle immediately loses 15-20% of its original value. In addition, it is necessary to estimate the annual costs of the car owner for fuel, service, parking, insurance, consumables and other cost items, the total amount of which for the year can reach at least 350,000 rubles.

If the owner, for example, after 3 (three) years wants to sell this car, he will be able to get a maximum of 1.5 million rubles for it. It turns out that the possession of such property led to the loss of 50% of its value over a three-year period of normal operation. In addition, during the same period, the owner of the car spent approximately 1 (one) million rubles on its use, based on the data given above (350,000 rubles per year). Three years of operation of the vehicle will cost its owner about 2.5 million rubles. A car has become a typical liability for its owner, which does not bring income to the investor, but leads to regular expenses and gradually loses its value.

How to manage your own assets and liabilities

Although liabilities do not generate income for their owner, it is not possible to completely eliminate them from everyday life. As a rule, liabilities are necessary factors for the existence of any person. We are talking about food, clothing, medicine, a roof over one’s head, technical devices, accessories and other areas of expenses that a person cannot do without. The only way to competently optimize the costs associated with maintaining and securing liabilities is to adequately link them with assets. It is desirable that the income from assets be greater than the costs of liabilities.

1. Make an accurate calculation of the actual amount of liabilities, assessing current needs and real monthly costs.
2. After analyzing the items of personal expenses, determine which areas should be excluded and which should be limited or reduced. Alternatively, you can avoid excessive expenses associated with paying for entertainment or purchasing expensive items.
3. Determine the structure of existing assets. Make sure they all generate adequate income. Calculate the monthly amount of cash receipts.
4. Compare the total income from existing assets with the total costs of existing liabilities. Identify the difference, estimate its size, and draw appropriate conclusions.
5. Always strive to exceed the income generated by assets, the costs associated with securing and maintaining liabilities.

An accounting approach to the interpretation of the concepts of assets and liabilities

From an accounting point of view, the assets of a business entity and its liabilities are components of a balance sheet containing the following information:

• Property owned by a business entity.
• Who owns this company.
• Sources of financing for property owned by the organization.
• Financial results of the enterprise (profit, loss).

Assets are displayed on the left side of the balance sheet and contain information about the property at the disposal of a business entity.

The organization's assets are divided into the following main groups:

1. Current assets, which, as the name suggests, are directly used in economic activities. These include the organization's financial resources, its inventories, as well as accounts receivable and other similar assets.
2. Fixed assets, which do not take part in the turnover of an economic entity, but play an important role in ensuring it. Non-current assets are considered to be real estate for industrial or other purposes, equipment, tools, vehicles, technical devices, long-term investments, and intangible assets of various types.

It is one of the fundamental ones in the field of economics and accounting. In order to correctly determine what belongs to this category, you need to clearly understand which tangible and intangible concepts relate to assets and which to liabilities.

So what is included in the assets of the enterprise? The fundamental document that reflects the list of assets is. Ideally, the sum of all the company's assets should be equal to the total value of the liabilities - in the jargon of specialists this is called “the balance has converged”. At its core, this form is very simple, it has only two columns into which all tangible and intangible items owned by the enterprise are distributed.

Net assets

Net assets are the difference between the sum of all assets and the total volume of its debt obligations to creditors, executors, public utilities, etc. The procedure for determining this value is the same for LLCs, state unitary companies, municipal enterprises, cooperatives and business associations.

The sum of all assets in the calculation process includes any property that can be used to generate profit from the activity. However, the following are not included here:

1. Receivable obligations to founders and shareholders.
2. Debts on contributions.
3. Enterprise transfers.

An important point: this category includes only income items that the company currently has - assets that can bring profit in the future are not taken into account in the formula. That is, this does not include government assistance to an enterprise (cooperative, farm), as well as gratuitous receipt of property - their procedure for inclusion in accounting reports is of a general nature.

If you have in your hands a financial report of an enterprise for a certain period (most often a quarter), then the procedure for calculating the assets of the enterprise looks like this:

1. We take data from line 1600 of the accounting report.
2. We subtract from it the debt of the founders for contributions to the authorized capital.
3. We get a certain number.
4. From it we subtract the sum of data from lines 1400 and 1500.
5. We add to the resulting value the future periods described in the paragraph above (state assistance and gratuitous receipt of property).

At the same time, in the professional environment, document flow and theory, the concepts of “net assets” and “equity capital” for an enterprise are equivalent values. This is also enshrined in the federal law regulating authorized capital.

Financial asset

A financial asset is the totality of all property of an individual entrepreneur, enterprise or other type of legal entity. These include:

• cash reserves
• before the company
• available funds

There is also a division of this category into two subtypes: current and non-current assets. They are indicated separately in all forms of accounting documentation.

There are several key characteristics that distinguish property and funds on the balance sheet from others:

• an asset gives an enterprise or entrepreneur a future opportunity from its use
• the company or individual entrepreneur has the legal right to receive this profit
• an agreement or procedure for the transfer of an asset to the use of an enterprise has already occurred and is a fait accompli

Intangible or intangible assets

In addition to tangible assets, an enterprise may also have other, intangible forms. Their key feature is the lack of measurability and tangibility. However, such assets still provide the opportunity to make a profit from business activities in the future, which still classifies them in this category and requires them to be accounted for. These include:

1. Intangible resources in the field of management and organization.
2. Unrealized technologies owned by the enterprise.
3. Reputation of the entrepreneur or joint stock company.
4. Capitalized rights.
5. Privileges (for example, to carry out work on orders, etc.).
6. Advantages of the enterprise over competitors.
7. Tools for control over the sale of goods and services.
8. Insurance guarantees.
9. Intellectual property of any kind (patents, ).
10. Rights to use property.

Non-current production assets

It is well known that the activity of a company is possible only if it has financial resources or property that can be exploited for business or other economic activities. That is, any used object that is related to the activities of the organization is classified as the company’s property. The primary array of non-current assets is created through a mandatory contribution procedure, the purpose of which is to create the authorized capital.

The Civil Code classifies the following objects as division of property:

• land plots
• subsoil areas
• buildings of any type
• forested areas
• transport (sea, river, air, land)

The remaining values ​​are classified as movable property by law. This should include securities, money, financial obligations. It is the sum of fixed assets and intangible objects that are non-current assets of production. In fact, they fit into a triad that ensures the start of a company’s activities (labor resources, objects and, in fact, labor itself).

Current (operating) assets

Current assets, often called operating assets, include all tangible and intangible objects that have currently (or in the current reporting period) been used to generate profit. It is immediately worth noting that the inclusion of long-term financial liabilities here is erroneous - this inaccuracy can often be found in poorly prepared accounting reports. The following assets are also not included in the current assets:

• accounts receivable
• unfinished construction projects
• faulty equipment
• means of labor that have not yet been brought into working condition (for example, purchased machines that are not installed in the workshop)

In accounting, the operating assets ratio plays a significant role - this is the sum of all operating assets that are currently used to generate profit. In fact, the ratio of assets operated to total provides useful information about the enterprise. Based on it, government agencies assess the ability of production to operate uninterruptedly and generate profits.

Non-core assets

There is one more column in the accounting and financial statements, which is also required to be filled out and can provide certain information about the current activities of the enterprise - the volume of non-core assets. Essentially, this concept describes any property of a company or business association that is not currently used to generate income. These may even include facilities such as kindergartens and clinics - this is an echo of the first wave of privatization that occurred in the decade before last.

There is also a scenario in which non-core assets arose due to a change in the orientation of the enterprise: due to the closure of production lines, choice in favor of another market segment, re-profiling. As practice shows, the most appropriate is the transfer or sale of non-core assets, but the law does not oblige joint stock companies and companies to do this. The fact is that long-term maintenance of such objects increases the number of expense items.

As a result, the company's assets are those objects that are used to generate profit from business activities. Also included here is property that can be used for these purposes, but has not been exploited until now.

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Even a person who is not involved in business and does not know the basics of economics has heard the term “asset” more than once. This word is most often used when it is necessary to estimate the value of a business and is often considered a factor influencing the final price. In addition, people who own shares in joint stock companies also have assets. Everyone knows this too. In this article we will try to understand in more detail what a net asset is, what other types it comes in, and so on.

Definition of the concept

An asset is property that belongs to an organization engaged in economic activity or to an individual. The totality of assets can include those materials and resources that are needed to organize production (or any other business activity). The difference between assets and other resources is that they are acquired for the purpose of further profit. Thus, each asset potentially contains income that can be received in the future, after carrying out certain operations. It turns out that an asset is a tool that can bring profit.

To make it clearer, let's give an example. A business entity makes envelopes from paper and ribbons. In this situation, paper and tapes as materials will be assets that will transfer their value to the price of finished products (envelopes) and thus bring profit.

Types of assets

In economic theory, there are several types of assets. The classification is carried out taking into account various criteria: nature, degree of participation in turnover, period of existence and return.

For example, depending on the nature of the asset, it is a bank deposit, real estate (for commercial use), securities, shares in a company, property that is involved in business activities, etc.

If we distinguish between assets by their repayment period, we can distinguish between short-term and long-term assets.

Speaking about participation in turnover, we can distinguish between current and non-current assets. The last classification, by the way, is one of the most popular, so we will focus on it.

Current and non-current assets

So, any asset can be classified according to this criterion. It's quite simple if you know what the essence of entrepreneurial activity is. In the example described above, where the business produces envelopes, the paper and tape are current assets because they are cut and included in the turnover of goods in the form of envelopes. Non-negotiable funds can be called those funds that do not become a commodity, that is, do not go into circulation. For example, this is a machine that wraps paper.

The characteristics of asset turnover make it possible to determine how they will be used in the future: they will be immediately converted into finished products or used in such a way that these resources will not be changed, so their resale will be possible in the future. This primarily determines the risk that business owners will be exposed to.

Who can hold assets?

Who can own a business asset? This question is quite simple - the enterprise itself. After all, its balance sheet includes such property as furniture, equipment, buildings and other objects.

If we talk about other types of assets, such as deposits or securities, then anyone can own them. For example, you, as an individual, have the opportunity at any time to purchase shares of a particular enterprise in order to later participate in its management and receive dividends. The same applies to other types: deposits, property, and so on.

Why are assets needed?

The main purpose of the assets is to participate in the organization of the production process. Since each asset of an enterprise is some kind of equipment, office space, or even licenses and certificates, their function is to work on the process in general, embodied in goods and services produced by the enterprise. The secondary function of an asset, which determines its importance, is generating income. With proper management and business planning, assets will begin to turn into products that should cost more than their original cost.

Intangible assets

In addition to the types of assets discussed above, there is one more category that should be mentioned. We are talking about such a concept as an intangible asset. This is a slightly different resource with an individual character. Thus, it is noteworthy that it does not have the structure of material things, exists together with some formalized documentation and, therefore, cannot be transferred (or simply is not re-issued due to inexpediency) to other entities.

In the current conditions, we can safely say that every organization or private entrepreneur, like any company, has such a resource as an intangible asset. This is explained by the fact that this category includes a whole list of abstract values: reputation, licenses, documentation with permits to conduct activities, databases, intellectual property.

Such assets cannot be felt with your hands, seen with your own eyes, and sometimes even fully appreciated. This is a kind of abstraction, which can be quite valuable. The clearest example is the reputation of a business entity in the business market. It is impossible to determine its value, but every entrepreneur will agree that a lot depends on its quality, including future profits.

All accounting of an enterprise is based on the distribution of property and liabilities of the organization between assets and liabilities. The main accounting report that an organization submits at the end of the year is the balance sheet, which gives an idea of ​​the organization’s assets and liabilities.

For proper accounting, it is important to learn to separate assets from liabilities, to clearly understand what the former are and what the latter are.

Concept of assets

Property that an organization owns and uses in its activities to obtain economic benefit will be classified as the assets of the enterprise.

What can be classified as assets:

• cash in any form;
• fixed assets;
• inventory items;
• raw materials, semi-finished products, products;
• real estate;
• land;
• vehicles;
• debt of other organizations (receivables).

All of the above is used in the economic activity of the enterprise in order to obtain a certain financial result. Using these resources, the organization wants to make a profit.

Assets can be classified in certain ways.

Asset classification:

The concept of liabilities

The sources of formation of assets, as well as obligations that the enterprise has assumed, constitute the liabilities of the organization. Liabilities include both equity and debt.

What can be classified as liabilities:

• authorized capital;
• borrowed funds, loans;
• retained earnings;
• formed reserves;
• taxes;
• debt to other persons (accounts payable).

Relationship

The assets and liabilities of an enterprise have different functions and purposes, but they are closely interrelated; one cannot exist without the other.

The first important rule that must always be followed in an enterprise is equality of assets and liabilities.

At any point in time, an enterprise can draw up a balance sheet in which all the property and liabilities of the organization are distributed between assets and liabilities. In this case, the sum of all assets must be equal to the sum of all liabilities. If this equality is not observed, then the accounting is carried out with an error, which should be identified and eliminated.

The second important rule is that when assets increase by the same amount, liabilities also increase, and when they decrease, the same applies.

This is logical, since assets are formed at the expense of liabilities. To understand these rules, consider an example.

Example:

The organization receives a loan in the amount of 100,000 to its current account.

A loan is a liability (accounts payable to the bank), that is, during this operation, the amount of liabilities increased by 100,000.

At the same time, the organization received an asset - cash in the current account, that is, the amount of all assets of the enterprise also increased by 100,000.

Thus, an increase in liabilities by 100,000 caused a similar increase in assets by 100,000.

Any change in assets must cause a similar change in liabilities and vice versa.

Video - concept of assets and liabilities

To fully conduct the company's activities, the owner must be able to operate the balance sheet. When making calculations, he will definitely encounter such concepts as passive and active. An inexperienced person immediately asks the question: what are assets and liabilities and what are their differences? We suggest that you familiarize yourself with the answer to this and many other questions.

Liability/asset and accounting system

Both an asset and a liability represent a certain amount of finance, which is reflected in different parts of the balance sheet. In this case, calculations are carried out in accordance with specific principles. Accordingly, the resulting total value of all assets and liabilities is always identical.

The total amount of assets is the balance sheet currency. This term is not associated with the currency of any country. Its task is to determine the volume of economic activity of a certain company.

Asset Features

If you want to know what is an asset and what is a liability, you must first become familiar with the first concept. In itself, this is a resource managed by the organization under the influence of past events, the use of which will make it possible to make a profit in the future. This resource consists of intangible, material and monetary values. In addition, this includes rights to property in terms of location, composition, and/or investment.

The resource in question is also divided into several categories depending on the form in which it functions. He can be:

• material;
• intangible;
• financial.

The first category usually includes equipment, consumables, real estate, and so on. An intangible type cannot have a physical form; it is represented by a patent, trademark, and so on. However, it also has an impact on the functioning of the company. The last category includes financial debts, funds, investments.

Depending on how they participate in production processes, resources can be divided into non-current and negotiable.

Non-current can be used in several cycles of production activities at once. They can be used in practice until their price is transferred completely to the product being manufactured. Recyclable, in turn, is intended for full use within one production cycle. In other words, it cannot be used repeatedly. Practice shows that the revolving type can be used for a period not exceeding one year.

Features of a long-term asset

This resource includes building structures and/or the land on which they are located, equipment, machinery for the production of goods, vehicles, and so on. The scheme for reflecting them is implemented at the purchase price without taking into account accrued depreciation. There are also exceptions that are relevant for land and buildings, where resolving issues related to their price falls on the shoulders of a professional appraiser.

Features of a current asset

This type is determined from finished goods, available raw materials, volumes of unfinished production batches, as well as inventories of a material nature. This may also include accounts receivable (this is the amount that buyers and customers must pay). Current assets include short-term investments and deposits. Naturally, money is a current asset. The characteristics of all available assets include the following:

• the company receives financial benefits from their continued use;
• both the events and the transaction that lead to the benefit have already occurred;
• The definition of “net asset value” should be understood as a value equal to the difference between the total amount of assets and liabilities.

To understand how an asset differs from a liability, it is necessary to consider the second term and delve into its features.

Passive: characteristics and varieties

If an asset results in profit, a liability is the exact opposite. Its task is to reflect the obligations that the organization has assumed in the process of conducting its own activities.

Without a liability, it is impossible to form an asset, since it is used as a source of its creation. When preparing a balance sheet, liabilities are always reflected in the right column. They are divided into 3 basic sections:

• short-term liabilities;
• long-term liabilities;
• reserves and capital level. In each element or line of liability, you can see the company’s funds, the presence of which makes it possible to fully form the active part of the balance sheet. Reflecting the balance sheet, the assets and liabilities of the enterprise are precisely those parts that are always indicated and without exception.

When asking the question “what is a liability?”, you can answer in just one short sentence. This is the company's capital. It is formed not only from own funds, but also borrowed funds, which are subject to long-term or short-term obligations. On the right side of the balance sheet, the accountant indicates each source, using which the organization generated assets. Summing them up, we get a liability, which, when converted to cash, indicates the exact value of the balance sheet currency. A liability can be called any type of capital of a company, which depends on the type of financial obligations (bill, loan, credit), and the form of organization (statutory or joint stock).

Liability structure

Each company liability can be classified into several categories.

1. Imaginary liability. It is reflected in tax or accounting records as of a specific date, with the help of which the exact value of the net asset is calculated. Moreover, it is already extinguished. If the accountant promptly determines the presence of an imaginary liability, he will be able to prevent double payment (current companies will be preserved and the value will not go down).
2. Hidden liability. In essence, this is a missing obligation, which is still reflected in the structure of the tax, credit or off-budget payment. It appears under the condition of untimely indication of previously listed debts.
3. Actual liability. It really exists and is always indicated on the balance sheet. The degree of urgency is determined depending on the repayment period specified in the drawn up agreement. Having fulfilled its obligations under this liability, the company will always lose a certain share of assets (working/fixed assets, finance, finished products, and so on).

conclusions

Having understood what an asset and a liability are in a balance sheet, you can fully prepare your accounting records. The result of the calculations is to obtain an accurate picture of the efficiency of the enterprise.

In essence, assets and liabilities are an effective means for making adjustments to the company’s current strategy, thereby increasing income and minimizing possible financial losses due to the wrong approach to solving certain problems.