Tangible non-current assets in the balance sheet

All organizations should maintain records of assets. Any company has assets that are frequently used in commercial activities, but remain unchanged. Process accounting can sometimes cause a lot of difficulties.

Definition

Tangible non-current assets in the balance sheet – a kind of property that listed for the organization and used for implementation. Such assets involved to profit over a long period of time (>1 year).

Tangible non-current assets – it is expressed in monetary form, the value of the assets and liabilities of the organization. They are all fully or partially used in the process of production and transfer their value to the finished product.

The Coefficient of materialization shows the degree of security organization OS:

KMA = AI/A where
AI — the value MNA (low value non-current assets) in the balance;
A — the result of balance.

the Property organization is characterized by the following indicators:

1. The purpose of the acquisition.
2. The period of use.
3. Form of assets.

its volume is influenced by:

• External factors: the situation in the country, market conditions, inflation, level of government regulation of the economy, legislation, the availability of credit;
• Internal factors: turnover, delivery terms, organization of the work.

Intangible assets:

• Satisfy the company's needs for material resources.
• Used for timely payments to contractors in full.
• Ensure effective use of funds.

Legislative control

At the state level, developed a series of NAPs that regulate the accounting process of the assets. In particular, the Federal law No. 208 is described in detail capital structure (article 25), the minimal requirements for its size (article 26), the process of changing the size of the capital (article 26-30), as well as the protection of the rights of the creditor and the issue of securities (article 31-33).

The rules of this law apply only to JSC. JSC and organizations of other forms of ownership have their own accounting rules. In particular in the Federal law № 402 are described in detail, as to consider tangible non-current assets and liabilities of the organization.

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Classification

The Process of accounting for assets reflected in the legislative acts. For the correct interpretation of the rules must first be familiar with the technical terms.

Presents material non-current assets in the balance sheet of a small enterprise are used/redeemed more than 12 months, while current assets are traded less than a year.

To intangible assets also include vehicles, buildings and property, which are used to solve production problems: transportation, refining, upgrading and storage of residues. The following balance impact tangible non-current assets:

• The line code of the balance 1110 – intangible assets;
• 1120 – Development;
• 1150 – OS;
• 1160 – tangible assets;
• 1170 – investments.

Let's Consider each of these articles details.

Intangible assets

1110-I the balance of the line ‘tangible non-current assets” is used to reflect trademarks, and works of art, which the organization has a unique law. The article is filled according to the account 04 minus 05 account. That is the report recorded the residual value of assets. The results of the NIOC, which are reflected under article 1120, are recorded at the original value of the same subaccount.

Search assets

The Data of non-current tangible assets (line 1130) reflect the cost of works on search of deposits of minerals at a particular site. Information is fed from the same sub-account 08 amortization (Sch. 05). These organizations fill line 1140, which reflects the cost structures of the vehicles used during the works. These values are also reflected amortization (Sch. 08 – Sch. 02).

OS

Tangible non-current assets (1150) the cost of which exceeds 40 thousand rubles with a term of usage longer than 12 months, are the major means. In the balance sheet they are reflected at the residual cost, i.e. taking into account depreciation (Sch. 01 - MF. 02).

Revenue and financial investments (part 1)

The Property which is for rent or lease, is also reflected in the balance sheet at residual value at line 1160. Under financial investments are deposits in the UK, bought by Central Bank and other organisations. Line 1170 is reflected by the initial cost of long-term investments (maturity period more than 12 months). The information is entered from the debit balance of the MF. 58, Sch. 55, Sch.73. If the company makes provisions for impairment of such assets, they should also be taken into account at line 1170.

The financial investments also include interest-free loans issued. Their amount is not reflected in line 1170, in the composition of accounts receivable (1190). Cost of purchased founders stock should also not be reflected in investments and in liabilities (p. 1320).

Deferred assets

Line 1180 filled with organizations that apply RAS 18/02. This reflects a debit balance of the MF. 09 at the reporting date. If the tax liabilities are minimized, it uses a different procedure. The positive difference between the CQ. 09 and midrange. 77 is recorded at line 1180 and negative – in the passive line 1420.

Other intangible assets

On line 1190 displays information about uncertain assets. This may be a residual value of R & d, repair costs, capital investments that were unfinished business. Criteria costs in this article, each organization develops its own.

Inventory

At line 1210 of the second section of the balance sheet must reflect the data about materials, products, raw materials in production. This also contains information about the inventory, not expensive office furniture, stationery that are not written off at the end of the reporting period. Information is recorded in the balance of account 10. If your organization uses accounting prices, the report reflects the difference between the CQ. 10 and Sch. 16. Additionally, if the organization establishes an allowance for the purchase of inventory, then the figures should be deducted the credit balance of the MF. 14.

Pending trade is reflected from the accounts of 20 to 23 and Sch. 46. The cost of transport cost of shipping goods is normally included in the cost. Then the information is recorded in the balance from the account 41. Inventory is stated at actual cost (Sch. 41 – Sch. 42).

VAT

Line 1220 should reflect the balance of the amount invoiced VAT. Zero balance allowed. If the organization has not taken a tax deduction and did not include it in the costs. This situation may occur if the received accounts of the identified error, the production has a long production cycle or sold at a zero rate. The balance is filled in with the debit balance of the MF. 19.

Accounts Receivable

In the RS include the debts:

• For the goods delivered to the buyers;
• For these reasons, the advances to suppliers;
• For funds not issued by accountable persons;
• Taxes, etc.

Line 1230 reflects a debit balance of accounts 60, 62, 68, 69. All companies are obliged to create reserve for doubtful debts. The amount reflected on the account 63, is subtracted from the value of debt.

Financial investments (part 2)

Line 1240 reflects the cost of short-term investments in the form of loans, promissory notes, etc. In the balance sheet includes data on the residual value of the investments, taking into account established reserves (the difference between MF. 58 and Sch. 59).

Money

Line 1250 displays information about the account balance in cash, cash accounts and cash equivalents, for example, deposits “demand”. Deposit accounts recognized in long-term or short-term investments. Funds in foreign currency are converted into rubles at the exchange rate at the time of this report.

Other OA

In other assets (1260) should reflect information about the property, which were left out of all the above mentioned articles. This can be the amount of VAT charged, not recognized in the current year, the revenue written off losses, etc.

A Simplified balance

Small enterprises often make use of simplified reporting forms in the preparation of the balance sheet. The abbreviated form consists of five lines of the asset and six liability. It would seem to make the balance is very simple. In practice, accountants have to face a number of difficulties.

Structure

In a simplified balance reflects the net information about assets and liabilities.

Each row corresponds to a specific code. If you need to specify several parameters in one line, then put the code of the article which has the largest share.

Example. The line in ‘tangible non-current assets” included the OS in the amount of 200 thousand rubles and capital investments in the amount of 80 thousand rubles. Cost of equipment purchased is greater than the sum of the investments. Therefore, the balance will be tangible non-current assets (line 1150) in the amount of 280 thousand rubles. If the company have nothing to record in some place, it just does not result in balance.

The Newly created organizations that have not conducted activities to show empty balance is impossible. The report should as a minimum reflect two operations: the source and process of formation of capital (ДТ75 КТ80). Most often, the shareholders contribute cash (ДТ51 КТ75) or provide as a treasure OS (ДТ01 КТ75). Then, recording is performed on the appropriate line “tangible non-current assets" in the balance sheet of a small business.

Example

OOO fills at the end of the year simplified balance sheet. At 31.12 the organization includes such assets:

• Purchased OS (Sch. 01) – 100 thousand rubles - material non-current assets (line code 1110);
• Cash (Sch. 51) - 10 thousand rubles. – line code 1250;
• Debt buyers - 15 thousand rubles. – DZ (code line 1260).

Total assets: 125 thousand.

Liabilities:

• UK + Profit: 115 thousand rubles line code 1310.
• Accounts payable (on wages, before the counterparties to the budget) – 10 thousand. – code line 1330.

Total liabilities: 45 thousand.

Cost Estimate

Before the sale of the organization calculated its market value. With this aim, determined by indicators such as net assets. Based on the data taken from accounting balance. The value of the assets shall be deducted all liabilities. Residual figure – the market value of the organization. If the result of the calculation turned out a negative value, then the organization's liability exceed the value of the property. In costing not involved the value of the shares that the company bought out the founders, and the inventory value. The fact of possession does not guarantee profit.

Tangible non-current assets are usually estimated by the excess earnings method. It is based on the assumption that part of the profits could exceed the “normal” profitability and converted into intangible asset - “goodwill”. Calculation algorithm:

• The valuation of assets and liabilities.
• Calculation of operating profit.
• Determination of the rates of return of OA, which then will be calculated by “excess profit”.
• Determination of the rates of return of IA, which then will be calculated “goodwill”.

Before settlement adjustment articles:

• The Securities are restated at market value.
• Accounts Receivable is cleaned to identify the debts that may still be available.
• Cost of goods and materials to better calculate the real cost of implementation.
• Advance Of expenses you should remove the part that does not pass to the buyer, and add costs that were not included in the assets.
• The Cost of furniture and equipment to better define the substitution method, i.e. taking into account depreciation, or at market price.
• Out of balance you need to uninstall debt obligations, issued on the security of real estate.

The articles From liability only to the bill and delayed tax payments in some situations you will need to adjust.