How to calculate changes in book value. Question: Calculation of the book value of the enterprise

The value of the company's property

General the value of the company's property is equal to the total of the balance sheet asset minus the total for section III of the balance sheet "Losses". The cost of non-current assets (fixed capital) is equal to the total of section I of the balance sheet asset, and the cost of working capital is the total of section II of the asset "Current assets".

The increase in the share of non-current assets in the property of the enterprise indicates the capitalization of profits and the successful directions of the investment policy of the enterprise. With a large proportion of long-term financial investments, and even more so its increase over the year, the effectiveness of investing in other enterprises is being studied. To do this, compare the percentage of return on invested capital. The percentage of return on invested capital in other enterprises should be higher than on funds invested in own production.

The value of the company's property

- these are non-current and current assets at the disposal of the enterprise. Assets balance sheet enterprise allows you to evaluate the property of the enterprise and its investment activities at the reporting date.
The total value of the property of the enterprise is equal to the total of the balance sheet asset minus the total for section III of the balance sheet "Losses". The cost of non-current assets (fixed capital) is equal to the total of section I of the balance sheet asset, and the cost of working capital is the total of section II of the asset "Current assets".
Based on the indicators of the property of the enterprise (non-current and current assets), the dynamics of changes in the value of all property and its components for a year or another analyzed period is studied and an assessment is made of the impact of certain types of property on an increase or decrease in the value of all property, i.e. a “horizontal analysis” is carried out property. It should be borne in mind that in a horizontal analysis, the change in indicators is affected by the results of property revaluation and inflation.
A higher growth rate of working (mobile) funds in comparison with non-current assets determines the tendency to accelerate the turnover of the entire set of enterprise assets.
The increase in the share of non-current assets in the property of the enterprise indicates the capitalization of profits and the successful directions of the investment policy of the enterprise.

With a large proportion of long-term financial investments, and even more so its increase over the year, the effectiveness of investing in other enterprises is being studied. To do this, compare the percentage of return on invested capital. The percentage of return on invested capital in other enterprises should be higher than on funds invested in own production.
With the increase in the share of fixed assets in the property of the enterprise, the depreciation of fixed assets and the share of fixed costs increase.
A significant increase in the share of current assets may indicate a change in the type of activity of the enterprise - from production to trade intermediary. Reducing the share of receivables is a positive trend in the company's activities.

The book value of the assets is

the value of the company's property. In the financial statements the book value of assets isbalance line 1600. Read more about it in this article.

Book value of assets: where to look in the balance sheet (line) and how to calculate

The book value of assets is the sum of all assets of the enterprise in value terms, reflected in the balance sheet (BB). The company's assets include:

non-current assets - line 1100 BB;
current assets - line 1200 BB.

Book value of assets — this is the amount of non-current and current assets, reflected in line 1600 BB.

Fixed assets and intangible assets are classified as non-current and are indicated in the BB at their residual value, i.e., at the acquisition price minus accumulated depreciation and taking into account revaluation, if it was carried out at the enterprise.

Revolving funds are assets that participate in the activities of the enterprise and are consumed within 1 year or 1 full cycle. Current assets include assets such as:

materials/stocks;
accounts receivable;
cash;

Based on the goals, the company can expect book value of assets as the value of the entire property of the enterprise or its constituent elements (fixed assets, intangible assets, etc.). How to Calculate the Book Value of Assets companies, see below.

Read also: Sample letter to the police for theft of property

So, as already noted, book value of assets reflected in line 1600 BB and represents the sum of non-current and current assets of the enterprise. That is book value of assets — this is the value of all property of the enterprise according to the balance sheet as of the last reporting date. It is calculated like this:

Line 1100 BB + Line 1200 BB.

Note!Book value of assets and book value of net assets are different concepts. Book value of assets — this is the sum of all the assets of an enterprise, while net assets are assets minus liabilities of an enterprise.

You can read more about net assets in the article. “How is the accounting value of net assets calculated?” .

Upon request, an enterprise can provide information on the state of its assets to credit and insurance organizations, some counterparties when making transactions. To do this, the company draws up a certificate of book value assets. which includes the calculation above.

A sample of such a certificate and the procedure for filling it out can be found in the article. "Reference on the book value of assets - sample" .

Why is the book value of assets calculated?

First of all, for the purposes of financial analysis, which is the most important tool for assessing the financial condition of an enterprise. In particular, book value of assets used in the calculation:

How return on assets is calculated can be found in the article “We determine the return on assets (balance sheet formula)” .

How to calculate the asset turnover ratio, you can read in the article "Asset turnover ratio - calculation formula" .

If the company calculates the profitability and asset turnover ratios for self-analysis, then the indicator book value of assets in some cases must be calculated by law.

Book value of assets — this is the most important indicator that determines the size of the transaction made by the enterprise.

So, some transactions of the organization for the sale of assets are recognized as large in accordance with paragraph 1 of Art. 46 of the Federal Law of 08.02.1998 No. 14-FZ (for LLCs) and clause 1 of Art. 78 FZ of December 26, 1995 No. 208-FZ (for joint-stock companies). To determine the size of the transaction, it is necessary to calculate book value of assets and the value of the property being sold. If the value of the property being sold is more than 25% of the book value of assets organization, the transaction is recognized as a major one. In this case, the transaction requires a decision of the meeting of shareholders or founders. If a book value of assets determined incorrectly or not calculated at all, the transaction may be invalidated.

Book value of assets — this is the value of the property of the enterprise according to the data accounting. Information about it is contained in line 1600 of the balance sheet. Book value of assets —this is an important indicator used to analyze the effectiveness of the enterprise.

The book value of the assets is the balance sheet line 1600. The balance sheet

From the formula already included in the balance sheet, it follows:

The final figures for line 1100, which combines positions that demonstrate the availability of fixed assets (line 1150) and intangible assets (line 1110), at the beginning of the reporting year amounted to 568,054 rubles. (54 + 568,000), and at the end of the year - 653,042 rubles. (42 + 653,000);

The values in line 1200 amounted to 6,131 rubles at the beginning of the year. (3,955 + 325 + 1,851), at the end of the period - 8,888 rubles. (5452 + 451 + 2985);

The results of the 1st and 2nd sections are combined as a result of the balance sheet asset, i.e. as of 31.12. In 2015, the book value of the assets (this is the balance sheet line 1600) amounted to 661,930 rubles. (653,042 + 8,888), and at the end of 2014 it was 574,185 rubles. i.e. 658 054 + 6 131.

Analyst Conclusions

When comparing the obtained absolute values, the economist is given the opportunity to analyze the state of assets, see trends in the increase or decrease in the total availability of property, and, by its categories, assess the actual situation with the company's assets on a certain date.

So, according to the presented balance sheet, the economist calculates the changes in the values of each line, comparing the indicators at the beginning and end of the year. In the example above, the cost is:

Intangible assets decreased by 12 thousand rubles;

OS increased by 85,000 rubles;

Inventories increased by 1497 rubles;

Accounts receivable increased by 126 thousand rubles;

Cash increased by 1134 rubles.

Based on these data, one can judge a very confident increase in the value of the company's property in 2015: an increase in fixed assets indicates the acquisition of a fixed asset, a decrease in intangible assets was the result of depreciation, since in the 1st section, the book value of assets is the residual value.

For all groups of working capital, there is also an increase in line-by-line values, which indicates the expansion of production and a noticeable increase in marketing activities, moreover, the availability of stocks increased by 37.9%, and cash - by 61%. This means that sales growth outpaces the growth of inventories. Consequently, the company pursues a competent policy to search for sales markets and increase product sales.

Read also: Obligations to transfer property for use

Analysis of receivables by balance sheet

Separately analyze the state of receivables. The absolute value of this indicator increased by 126 thousand rubles. the growth rate by the beginning of the year was 38.7%. However, it is impossible to speak with confidence about the undoubted growth of this indicator. Taking into account the growth of inventories at almost the same pace (37.9%), and the increase in the cash component by 61%, one can judge the stability of this value and the absence of an increase in debts, because the share of debtors in the total value of assets remained at the level of the beginning of the year - 0, 06%:

325 / 574 185 * 100% = 0.056% at the beginning of the year,

451 / 661,930 * 100% = 0.068% at the end of the year.

Such a calculation is necessary, since accounts receivable, being an asset, nevertheless divert funds from production turnover and require mandatory control of the dynamics of changes, i.e., timely collection of debts. In our example, the absence of its increase against the background of a general increase in assets is a very positive sign of the financial health of the organization. The total balance sheet value of assets (this is the balance sheet line 1600) increased by 87,745 rubles over the year. or by 15.3%.

Finally

For a more detailed analysis of indicators, an economist uses a variety of calculated coefficients. In this article, we tried to tell not only how to fill out the balance sheet and calculate the amount of assets on it, but also tried to see the analytical picture behind the dry numbers of the line-by-line values of this accounting form.

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Book value

Book value is the cost at which an asset element is carried on the balance sheet.

The carrying amount of an asset is equal to its cost less accumulated depreciation.

The initial cost is defined as the sum of all costs for the acquisition or manufacture (construction) of an object, including the costs of delivery and installation, and excluding the amount of refundable taxes.

Book value of property, plant and equipment

In accounting, the book value of a fixed asset is the residual value of the fixed asset, which is determined as the difference between the original cost and the amount of accumulated depreciation.

When accounting for fixed assets at a revalued cost (revaluation), the book value of fixed assets is equal to the difference between its current (replacement) cost and the amount of accrued depreciation.

The carrying value of assets in the enterprise's balance sheet

The book value of assets is the sum of all the company's funds that are reflected in the balance sheet.

The book value of assets is the sum of non-current and current assets.

Fixed assets and intangible assets are non-current assets and are indicated in the balance sheet at residual value, i.e., at the acquisition price minus accumulated depreciation and taking into account revaluation, if it was carried out at the enterprise.

Current assets are assets that participate in the activities of the enterprise and are consumed within one year or one full cycle.

Current assets include assets such as:

VAT on acquired values, which indirectly, but also is the property of the enterprise;

short-term financial investments.

For what purposes is the book value of assets calculated?

First of all, for the purposes of financial analysis, which is the most important tool for assessing the financial condition of an enterprise.

The book value of assets is an important indicator used to analyze the performance of an enterprise.

In particular, the book value of assets is used in the calculation of:

return on assets, which shows how much profit the company receives from each ruble invested in property;

asset turnover ratio, which determines the efficiency of their use.

If the profitability and asset turnover ratios are calculated by the enterprise for its own financial analysis, then the indicator of the book value of assets in some cases must be calculated according to the law.

Thus, the book value of assets is the most important indicator that determines the size of the transaction made by the enterprise.

Thus, some transactions of the organization for the sale of assets are recognized as large if the value of the property being sold is more than 25% of the book value of the organization's assets.

Therefore, to determine the size of the transaction, it is necessary to calculate the book value of the assets and then determine the value of the property being sold.

In this case, the transaction requires a decision of the meeting of shareholders or founders.

If the book value of the assets is determined incorrectly or not calculated at all, the transaction may be invalidated.

Reading 8 min. Views 70 Published on 09.12.2018

There are many economic indicators that are used to assess the financial health of a company. As a rule, all property belonging to the company is analyzed for this purpose. When compiling such calculations, various scenarios are used, the choice of which depends on the purpose of the process under consideration. Such a purpose may be to reflect the received assets in the financial or tax reporting, as well as the transfer of property to the balance sheet of the enterprise. All assets owned by the company are expressed in monetary units. Within the framework of this article, we propose to consider the question of what the book value of fixed assets is and how this indicator is calculated.

The book value of fixed assets is the value of these assets on the company's balance sheet

What is the book value of fixed assets

The economic activity of each company is provided by various labor means. This category includes production equipment, machine tools, real estate and vehicles. All labor resources are part of the company's fixed assets. These funds have a number of features, among which are:

The cost is over forty thousand rubles.
Long service life exceeding twelve months.

It is important to note that the results of the company's activities cannot be considered as fixed assets. This fact is explained by the fact that the OS is not consumed during the production cycle. Each asset belonging to this group has the ability to generate economic profit. The carrying value of such assets is calculated based on several important factors. The carrying amount of an asset may be the original or residual value of a particular item. The difference between these concepts will be discussed below.

The term "book value" is used to refer to the total value of all property items owned by a particular company. This property is recorded on the balance sheet of the company. This indicator is the sum of current and non-current assets. Non-current assets include fixed assets owned by the company and those assets that are intangible in nature. Such assets are carried on the balance sheet at their book value. This means that accumulated depreciation is deducted from the original cost of assets.

Working capital includes property used in production activities. This category includes financial resources, inventories and receivables. In addition to direct current assets, there is also indirect property. This category includes short-term investments and VAT on purchased goods. The use of this indicator allows you to determine the current financial position of the company. Based on this indicator, the efficiency of economic activity is calculated.

Such calculations allow you to find out about the profitability of property owned by the company. This indicator clearly reflects the level of income of the company from each ruble spent on the purchase of equipment. In addition, the calculation of the book value of assets allows you to determine the turnover ratio of fixed assets. This indicator is used to indicate the efficiency of a company's use of resources. In the event that the calculation of the above indicators is due to the need to assess the financial activities of the company, special methods for compiling calculations are applied. Based on the foregoing, it can be concluded that the information obtained as a result of these calculations is used in determining the scale of the transaction concluded by the company.

A major transaction is a contract for the sale of a company's property, the value of which exceeds twenty-five percent of the total value of all the firm's assets. In order to determine the scale of the forthcoming transaction, it is necessary to make calculations of the book value of assets in advance. Based on these calculations, a specific asset is valued. In order to conclude such a deal, it is necessary to first hold a meeting of the company's participants.

It should be noted that if the calculations are made incorrectly, the concluded contract may lose its legal force.

The book value almost never matches the market-driven value of the property, as the mechanisms for determining it vary greatly.

Characteristics of the book value

In order to assess the financial condition of the company, you need to carefully analyze all fixed assets and identify the sources of their formation. The need for such an analysis may be due to the need to charge taxes, prepare financial statements or record new assets on the balance sheet of the enterprise. Below we propose to consider the basic rules for assessing the book value of fixed assets.

Initial

When crediting assets to the company's balance sheet, the initial cost of the property is taken into account. This amount does not include VAT and other refundable tax payments. The procedure for making calculations depends on the methods used to obtain the assets. In the case of the acquisition of fixed assets, the value of the property itself is taken into account, which is reflected in the contract concluded with the sellers. To this amount, you can add the costs of transportation and installation of equipment, payment of customs duties and state duties and taxes. In addition, the initial cost of objects includes the costs of paying for the services of intermediary companies.

In the case when the company independently manufactures fixed assets, the actual costs associated with the manufacture of the product are invested in the initial cost of the asset. Often there are situations in which it is almost impossible to assess the value of the received property. As a rule, such a situation arises when an asset is received as a gift or when a barter contract is concluded. In this case, the market value of this object or its closest analogues is calculated. The initial book value of fixed assets is calculated only once. An exception to this rule is the reconstruction of immovable objects, the modernization of production equipment or the partial change of an asset.

The procedure for revaluation of assets deserves special attention. Such events can only be held once a year. When making calculations, the current or replacement price of assets is taken into account. Carrying out these activities can lead to cheaper or more expensive OS. When compiling recalculations, the indexing method is used. In other situations, it is more advisable to focus on current market prices, confirmed by relevant documents.

Residual

The residual book value is used in the valuation of property that is already in use by the company. This indicator can be calculated in several ways. As a rule, accumulated depreciation is deducted from the initial cost of the object to determine this value. In the event that a particular asset has been revalued, a slightly different methodology is used. In this situation, the accrued depreciation is deducted from the replacement price of the property.

Methods for determining the amount of accumulated depreciation are set out in the current legislation. One of the simplest calculation methods is linear method. During the transfer of the acquired property to accounting for each object, the duration of the useful life is calculated. During these calculations, each object is assigned to a specific depreciation group. For this purpose, the classifier of fixed assets is used.

Depreciation begins to accrue only from the next month after the start of use of the object. It is important to note that current laws prohibit depreciation on natural resources.. Scroll natural resources, which cannot be used in such calculations, is given in the two hundred and fifty-sixth article of the Tax Code. Many experts in the financial sector recommend studying the innovations in current laws before making calculations. The accounting procedure for fixed assets is regulated by accounting rules and tax legislation.

The book value of the property is formed by adding up all the actual costs incurred by the company for the construction, acquisition or manufacture of property objects

Book value of property, plant and equipment

The book value of property, plant and equipment is the residual value of an asset. In order to calculate this indicator, it is necessary to subtract the amount of accumulated depreciation from the initial price of a particular asset.
Accounting for fixed assets at revalued cost deserves special attention. In this case, the value of the indicator under consideration is the result of subtracting the accumulated depreciation from the restored property price.

Book value of property (equipment)

Quite interesting is the fact that the book price may differ from the prices dictated by the market. This difference is explained by the difference in pricing mechanisms. In market conditions, it is necessary to take into account the amount of competition in a particular direction. In the case of the book price, all costs associated with the manufacture or purchase of property values are taken into account.

To determine the balance price of equipment, it is necessary to obtain a number of initial data. To make correct calculations, you will need information about the initial price of the object and the amount of accrued depreciation. When calculating the last indicator, the duration of the operational life of the object is taken into account. Depreciation is charged only on those objects that are used to make a profit. One of the important conditions is the ownership of the equipment. It should also be noted that equipment can be classified as depreciable assets only if its cost is more than one hundred thousand rubles. This rule is enshrined in the two hundred and fifty-sixth article of the Tax Code.

Book value of the enterprise

From a business point of view, each company is an independent asset that can be sold. In order to assess the effectiveness of the financial activities of the enterprise, a special form is drawn up. This form lists all property owned by the company. Based on this report, the book value of the organization is calculated. For this purpose, the formula is applied: "CHA - NA", where:

"CHA"- net assets.
« ON THE"- intangible resources.

Rules for calculating the average annual book value of fixed assets

Based on the statement that the book price of the OO is their residual value, when making calculations, you can use the formula: "The initial price of the object - depreciation accrued over the operational period." To date, there are two different methods calculation of the average annual book price of fixed assets. The choice of a specific methodology depends on the purpose of the calculations.

In order to evaluate the financial performance of the company, information taken from the balance sheet is used. The average calculation method involves adding up the book price of assets at the beginning and end of the year. The result obtained must be divided by two.

When calculating the amount of taxation, it is recommended to use the calculation procedure set out in Article 376 of the Tax Code. To do this, add together the residual price of assets for each month of the reporting period. The result obtained must be divided by thirteen.

Determining the book value of the company itself is necessary to assess the effectiveness of its economic activities.

The book value of fixed assets is an important indicator of financial statements. Consider where it is used and what types of calculation are.

Attention! Companies are required to pay property tax on their fixed assets. Correctly determine the amount of tax and successfully report on it will help you:

What about fixed assets?

In accounting, property is considered a fixed asset if its useful life is more than 12 months. Another important factor is the nature of its use (clauses 4, 5 PBU 6/01).

OS includes:

property that will be used in production (management) activities or will be leased;
not intended for further implementation;
generating income in the future.

Such objects are, for example:

buildings and constructions;
vehicles;
computer technology;
workers, power machines and similar equipment;
measuring instruments and devices;
tools, production and household inventory;
land;
objects of nature management;
capital investments in land plots, for example, for radical improvement of land and leased objects of fixed assets.

The BukhSoft program will take into account an object of fixed assets of any complexity. Operations and documents comply with all legal requirements. Try it for free:

In accounting, an object can have all the features listed above, and its initial cost can be equal to or less than 40,000 rubles. A specific limit is fixed in the accounting policy for accounting purposes. With a legislative change in the limit, the new value is applicable only to newly accepted objects for accounting (letter of the Ministry of Finance dated 10.01.2012 No. 07-02-06 / 3).

In tax accounting, fixed assets are considered property or part of it (clause 1, article 257 of the Tax Code of the Russian Federation):

used as a means of labor for the purposes of production, sale of goods, performance of work, provision of services or for business management;
having an initial value of more than 100,000 rubles.

Items with a useful life of more than 12 months are depreciated. But if their cost is 100,000 rubles or less, they are not depreciated. It is written off as material expenses (paragraph 1 of article 256, subparagraph 3 of paragraph 1 of article 254 of the Tax Code of the Russian Federation).

What is the book value of fixed assets?

The book value of fixed assets is their residual value. It is calculated by subtracting the amount of depreciation accrued on it from the initial cost of the object.

The BuhSoft program automatically sets the useful life of any fixed assets, calculates depreciation on them and makes postings for its accrual. Calculate the depreciation rate for free:

Calculate depreciation online

What is the difference between the book value of property and the market value?

The book value of a property is an indicator that will differ from its market value.

The book value of an object consists of the costs actually incurred by the company or individual entrepreneur for its purchase, construction or manufacture.

When determining the market value, factors of competition, supply and demand are taken into account.

Calculation of the book value of fixed assets

We present three types of calculation of this indicator.

AT general case value is determined by the formula:

Book value = Original purchase price (construction, creation) - Depreciation accrued over the period of use

For purposes tax accounting apply the formula specified in paragraph 4 of Art. 376 of the Tax Code of the Russian Federation:

Average annual book value = (Carrying value as of 01/01/2019 + Carrying value as of 02/01/2019 + Carrying value as of 12/31/2019) / (12 + 1),

For the purposes of financial analysis, indicators are taken from the balance sheet and the average statistical formula is used:

Average annual book value = (Book value at the beginning of the year + Book value at the end of the year) / 2

Book value is the cost at which an asset element is carried on the balance sheet.

The carrying amount of an asset is equal to its cost less accumulated depreciation.

Book value of property, plant and equipment

In accounting, the book value of a fixed asset is considered to be a fixed asset, which is determined as the difference between the initial cost and the amount of accrued depreciation.

The carrying value of assets in the enterprise's balance sheet

The book value of assets is the sum of all the company's funds that are reflected in the balance sheet.

The book value of assets is the sum of non-current and current assets.

cash;