Property of the organization, its classification and characteristics
The property (assets) of the organization as an accounting object forms the basis of its life activity and is an integral part of any fact of economic life. The main objects of property (assets) are means and objects of labor, cash and their equivalents, capital and financial investments, funds in settlements. To correctly record, evaluate and use the organization's property, many attributes and classifications of accounting objects are used.
Relative to the organization's capital:
- non-current assets (investments in non-current assets, intangible assets, fixed assets, income investments in tangible assets, long-term financial investments, deferred tax assets);
- current assets (inventories, cash, short-term financial investments, funds in settlements).
Each group of assets has certain characteristics. In particular, non-current assets:
- are intended for use in the production process of products (works, services), for management needs of the organization, for payment for temporary use and (or) use;
- designed to be used for a long time, i.e. term exceeding 12 months. or a normal operating cycle if it exceeds 12 months;
- not for resale;
- can bring economic benefits to the organization in the future. Current assets, as opposed to non-current assets:
- used as raw materials, materials, etc. in the production of products intended for sale (works, services);
- are for sale;
- used for management needs of the organization;
- used as means of payment and settlements with legal entities and individuals;
- used to generate income in the short term. The listed sub-groups of assets also have their own specific features, including:
- Investments in non-current assets characterize the organization's costs of objects that will subsequently be accepted for accounting as fixed assets or intangible assets;
- fixed assets are means of labor whose service life exceeds 12 months, for example, buildings and structures, vehicles, equipment;
- intangible assets are objects that do not have a physical basis, but have a valuation and income-generating organization in the long term. For example, the exclusive rights of the owner to a trademark, inventions, computer programs, the name of the place of origin of goods, etc .;
- income-bearing investments in tangible assets intended for leasing are in the form of resources invested in fixed assets;
- Investments in shares of joint-stock companies and authorized (share) capitals of other organizations, promissory notes and bonds, contributions under a simple partnership agreement, loans to other organizations, bank deposits, receivables acquired under a contract of assignment of the nature of the claim are financial investments. Long-term investments are for a period of more than one year. Financial investments for a period of less than a year are classified as short-term investments;
- deferred tax assets are part of the deferred income tax, which should result in a reduction in income tax payable to the budget in the next reporting or subsequent reporting periods;
- inventories are presented in the form of raw materials and materials, spare parts, fuel, finished products, goods intended for resale, small-scale inventory, containers, packaging materials, overalls, etc.
- cash represents cash in the cash desk of the organization, on settlement, currency and special bank accounts, as well as money documents and transfers in transit;
- funds in settlements are accounts receivable of buyers and suppliers on received advances, claims made, staff on accountable amounts, loans and other operations.
By functional nature the fixed assets are divided into the following groups:
- land and objects of nature use transferred to the ownership of the organization;
- buildings, structures and transfer devices
- machinery and equipment, including vehicles;
- production and household equipment, tools and accessories;
- working and productive livestock
- perennial plantations;
- capital investments for the radical improvement of lands;
- other fixed assets.
Long-term investments include: capital investments (construction, expansion, modernization, etc.) and financial investments (investments in securities, for example, in shares, bonds, bills of exchange, savings certificates, etc.). By placement:
- in the sphere of production: production equipment, buildings and structures of production workshops, construction machinery and mechanisms, etc. Production stocks: raw materials, materials, semi-finished products, fuel, spare parts, containers and packaging materials, construction and other materials, household equipment. Production costs: main production, semi-finished products of own production, auxiliary production, general production and general economic expenses;
- in the sphere of circulation: commercial equipment, buildings and structures of finished goods warehouses, vehicles used for the transportation of finished products and goods, etc. Finished goods in the warehouse; goods shipped; goods for resale; sales costs; cash; financial assets (short-term); funds in settlements (accounts receivable);
- in the non-productive sphere: equipment, buildings and structures, machinery and equipment, materials and implements, the costs of serving industries and farms.
- rented or leased and leased;
- taken and handed over as collateral and rental. For use:
- in operation;
- in stock;
Each attribute of asset classification has its own purpose, as it determines the rights to them, the methods for their recognition, use, accounting, valuation, as well as sources of financing the costs of their acquisition and operation.
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