Non-current assets and current assets are able to fully characterize the situation of property, business and investment of the enterprise.
Today, asset management activitiesis aimed at the financial management system. It is closely related to other management systems that exist in the enterprise. The following subsystems can be included in the enterprise management system:
Non-current assets and current assets are included infinancial management systems, therefore, are in close connection with the operational and innovative management. When the annual financial statements are prepared, care must be taken to calculate and reflect the efficiency indicators for the use of current and non-current assets. The finished analysis is written exclusively in the explanatory note, where accountants can assess trends and the reasons for the effective or unsustainable use of assets.
We can distinguish the following assets, which are based on such principles:
Assets - a common set of all sorts of rightson the property that belongs to the enterprise. As their mean fixed assets, inventories, financial contributions, monetary claims, which are imposed on a physical and legal person.
In other words, assets are certain investments, as well as requirements. This term allows you to identify any forms of ownership, as well as property of the organization.
Assets can be divided into tangible and intangible. In turn, the first can be attributed to assets that do not have a monetary equivalent. They are able to satisfy the following conditions:
Intangible assets relate to the business reputation of the enterprise and to objects of intellectual property.
Non-current assets of the organization includeimportant funds, ready-made equipment for further installation, intangible assets, long-term cash and capital investments that have not been completed. If such assets were created at the initial stages of the enterprise, then in this case it is necessary to take care of constant management. It can be implemented in a variety of forms and in numerous functional units.
Some tasks for managing such assetscan be entrusted to financial management. Enterprises can differentiate various forms and methods for performing financial management of non-current assets.
The following classification of non-current assets can be distinguished:
Thanks to this classification, you can use accounting accounts at the enterprise. Non-current assets are determined by means of the main cycle from the value of circular turnover.
Turnover assets include suchcomponents, like semi-finished products, a variety of materials, raw materials and money. The basic current assets are financial investments for short terms, produced products, as well as funds that are on the accounts. One can single out a generally accepted classification of these means:
The main and most important element for conductinganalysis is the composition of current assets. This is the most mobile part of any available capital, from the current state of which depends the further financial condition of the whole enterprise. If the composition and structure of the current asset are in a stable state, then this factor speaks of sustainability. That is, the company is perfectly adjusted to the process of production and further sales of products.
When there are significantchanges in the composition and structure, then we can talk about the unstable work of the organization. Such indicators as the composition and size of current assets in the enterprise relate not only to the needs during production, but also the need for their further treatment. To carry out successful economic activities, you need to think about working capital. To perform calculations of the financial requirement for working capital, you can use the following known methods:
The structure of current assets isthe ratio between the amount of funds that is constantly in circulation, and the basic elements. These indicators are influenced by the specifics of the implementation of a certain production process, supply and close cooperation with customers and customers. To study the structure of current assets, it is necessary to take care of forecasting changes in the outlook of the working capital composition.
It is possible to single out the principles on which the structure of circulating assets depends:
To analyze this structure,it is necessary to determine the specific weight of all constituent elements of circulating assets. Also their total cost is taken into account, where vertical analysis is used to calculate the indicators. It is the non-current assets and current assets that will help to fully analyze and determine the property situation in the enterprise.</ p>