The composition and structure of assets

The composition and structure of assets

Assets controlled by an entity called the resources, the use of which would cause an economic benefit in the future.The assets are part of the financial statements.It is necessary to consider in more detail than is the composition and structure of assets of the enterprise.

enterprise assets

So, the organization's assets include fixed assets (non-current) and the current (current) assets.

In turn, part of the non-current assets include:

  • fixed assets
  • intangible assets
  • profitable investments, wealth
  • construction in progress
  • deferred tax assets
  • long-term investments
  • Other non-current assets

Currentassets include:

  • receivables
  • stocks
  • cash
  • short-term investments
  • other current assets

composition and structure

bank assets With regard to the bank, its active operations constitute a decisive and essential partfrom all of its operations.The structure of the bank's assets is the ratio of different quality of balance sheet assets to the balance sheet total.In order to determ

ine the quality of bank assets is necessary to highlight the expediency of its asset structure, diversification of active operations, the volume of risky assets, the amount of critical and defective assets, as well as signs of asset volatility.

commercial bank's assets are divided into 4 categories - is cash on hand and assets equivalent to it, loans, investments in securities, buildings and equipment.

Subject and the establishment of a rational structure of assets each bank is experiencing the problem.In addition, the bank's assets structure depends on the prevailing national characteristics.

Analysis of the composition of assets structure dynamics

The analysis is extremely important for any enterprise.Since the irrational structure of the property, which was caused by the lack of renewal of fixed assets during their high degree of wear and tear, can quite quickly lead the company to reduce production or implementation work, products and services, leading in turn worsening the financial situation of the enterprise.

addition to the unjustified increase in production costs, as well as the freezing of funds, resulting in the presence of illiquid or excessive inventories and unjustified increase in construction in progress costs.At the same time the company's financial position adversely affects the lack of reserves, since it can lead to a serious reduction in the amount of the company's profits.

To find out the size of the reduction or, on the contrary growth should not only study the structure and composition of the company's assets, but also to learn what their dynamics.The composition and structure of assets based on a comparison of the reported data of the balance sheet for a certain number of periods.

Thus, at the beginning of the analysis it is necessary to study in detail according to the asset balance of the composition and structure of property companies.For a deeper analysis of the structure of the property should attract additional data form "Information on the presence and movement of enterprise assets (fixed assets) and other non-financial assets".

Such a deep analysis allows us to make an overall assessment of changes in the property business, as well as to allocate part of its non-negotiable (immobilized) and current (mobile) assets, to study the dynamics of changes in the property structure.Under the structure of the property is taken to mean the percentage of individual groups of assets of the enterprise and the articles within these groups.

Analysis of the composition of the dynamics, structure of assets provides an opportunity to set the size of the relative and absolute reduction or growth of the company's total assets and its individual species.Thus, the asset growth testifies to expansion of the company or of the result of the effects of inflation.

therefore producing analysis of the causes of increasing enterprise value of the property, be sure to take into account the effects of inflation, as its high level leads to serious deviations from the actual nominal data on the balance sheet.

With regard to the restriction of economic activity, it may be due to the reduction in effective demand for goods, services and operation of the enterprise, as well as limited access to markets semi-finished products, materials, raw materials, or the inclusion of subsidiaries active in the economic turnover by the parent company.So change the structure of the property contributes to the emergence of certain opportunities for the basic and financial performance, and in addition, has a certain impact on the turnover of total assets.

structure of property companies

It is obvious that the structure of the property depends on the specifics of the business.For industrial companies of chemical industry, machine building, instrument making, shipbuilding have higher capital intensity.They are composed of assets to 70% of fixed assets.A variety of trading enterprises, service, catering have different structural construction.Here, the share of fixed assets account for 20-30%, which means that current assets amount to 70-80%.Thus, the estimation of property structure should always start from the individual and industry characteristics of a particular company.

Methodology to evaluate the property of the organization is made up of horizontal and vertical analysis.

Property Valuation horizontal analysis

Horizontal analysis of balance sheet items is based on the study of the dynamics of indicators, as well as their relative and absolute changes.A vertical analysis of active balance sheet items is studying the structure of the property, as well as the causes of change.In conducting this analysis, it sets the proportion of articles in relation to the value of current and non-current assets and total assets.

Accounting for inflation is carried out only in the formation of the cost of fixed assets.By adjusting their initial cost necessary to make the account of revaluation, and then reflect on the replacement value of the assets in the account.So, finding out what the structure and composition of assets, should determine the amount of increase in the value of these assets due to revaluation.To do this, these accounting records should be explored in the following accounts: 01 "Fixed Assets", 83 "Additional capital".

It should be noted that the revaluation of inventories of goods and finished products in the domestic accounting and analytical practice is not met.For this reason, their increase in value is directly affected by the inflation factor.

Share of each type of property in total assets reflected a change in the structural dynamics of the performance.By analyzing them, we can conclude in which assets invested recently attracted financial resources, or any assets decreased due to the outflow of financial resources.