In Russian legislation, the actual amount of net assets is used to establish minimum restrictions on individual organizational forms and for settlements between participants in companies established on a share, share basis. How to calculate, you will learn below.
Net assets (NA) are designed to measure the real value of a business entity on a certain date and assess its financial viability.
Calculated value formula
In Russia, the basic foundations for calculating the NA are laid down by Order 84n. To calculate them, it is necessary to subtract the total volume of liabilities from the value of all assets (minus the debt of participants, shareholders on deposits) (minus the received state aid or gratuitous property, accounted for as part of deferred income). The amount of net assets is determined according to form 1 "Balance sheet".
As a rule, the participants are usually required by the charter to make their contribution during the year, therefore their debt on contributions is reflected in the balance sheet as part of line 1230. The amount of state support or free property received is included in the amount of line 1530.
The general formula for calculating net assets according to the balance sheet will look like this:
NA = line 1600 (minus the participants' obligations under line 1230) - line 1400 - line 1500 + line 1530
Example. As of December 31, 2017, Joint-Stock Company Garantiya has a total NAV on the balance sheet (line 1600) of 140,000 thousand rubles. The total debt of shareholders on contributions amounted to 150 thousand rubles. Long-term liabilities (line 1400) are equal to 2600 thousand rubles. The total amount of short-term liabilities (line 1500) is 112,500 thousand rubles, of which property received free of charge is 100 thousand rubles. Authorized capital (line 1310) - 10,000 thousand rubles.
We determine the size of the NA of the joint-stock company as of December 31, 2017:
NA \u003d 140,000 - 150 - 2600 - 112,500 + 100 \u003d 24,850 (thousand rubles)
The value of the company's NA at the end of the financial year is significantly higher than the value of its authorized capital, which indicates a high level of financial condition, the potential possibility of paying dividends to its shareholders.
Analysis of the reasons for the changes
To assess the solvency, creditworthiness of a business entity, the following is used:
- comparative analysis of the absolute size of net assets in recent years
- their turnover
- dynamics of the ratio of net assets to the total assets of a business entity
Profitability of NA is determined by the formula:
RFA \u003d PR / HA x 100%, where
- RFA - ROI
- NP - net profit after tax for the period
Example. As of December 31, 2016, the NA in Double LLC amounted to 8 million rubles.
Profit after tax for 2016 is 2 million rubles.
As of December 31, 2017 NA = 11 million rubles, NA for the year = 3 million rubles.
NA profitability in 2016 = 2/8 x 100% = 25%, in 2017 = 3/11 x 100% = 27.27%.
The NA turnover ratio is determined by the formula:
K OCHA = Revenue / CHA
Example. In 2016, the sales proceeds at Double LLC is 70 million rubles, in 2017 = 80 million rubles.
The NA coefficient in 2016 is 70/8 = 8.75, in 2017 80/11 = 7.27. The indicator indicates a small level of decline in business activity in the company's activities.
Net assets with a negative result
There are cases when, in the balance sheet of a business entity, the estimated amount of NA at the end of the financial year becomes less than zero. The reasons for this negative phenomenon:
- the result of his activities in several reporting periods led to, exceeding the total value of all components of his own capital
- in the last reporting period, force majeure events (fire, floods) occurred, resulting in significant loss of his property
- large financial sanctions were applied to the enterprise by regulatory authorities, banks, creditors
In such emergency situations, urgent intervention of the owners of the business entity is necessary to resolve the issue of its further fate - liquidation or making additional contributions to correct the financial situation as soon as possible.
How to achieve growth in net assets
With the exception of adjustments for debts of participants and free property, the amount of NA is similar to the amount of equity capital of a company, a business entity with a different organizational and legal form and is reflected in section III on line 1300 of the balance sheet. Therefore, the size of the NA is influenced by the components of its own capital:
Successful financial and economic activity in the calendar period leads to an increase in retained earnings and an increase in net assets.
The size of the NA serves as an indicator of the viability of a business entity. The loss of control over their value, the lack of efforts by the administration of business entities to increase them can lead to serious problems, up to the liquidation of a business entity.
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Net assets- this is the value determined by subtracting from the amount of the organization's assets, the amount of its liabilities.
Net assets
The procedure for calculating net assets was approved by the Order of the Ministry of Finance of Russia dated August 28, 2014 N 84n "On Approval of the Procedure for Determining the Cost of Net Assets". This procedure is applied by joint-stock companies, limited liability companies, state unitary enterprises, municipal unitary enterprises, production cooperatives, housing savings cooperatives, economic partnerships.
Calculation (formula)
The calculation comes down to determining the difference between assets and liabilities (liabilities), which are defined as follows.
The composition of the assets accepted for calculation includes all assets of the organization, with the exception of the receivables of the founders (participants, shareholders, owners, members) for contributions (contributions) to the authorized capital (authorized fund, share fund, share capital), for payment of shares.
The composition of liabilities accepted for calculation includes all liabilities, except deferred income. But not all deferred income, but those that recognized as an organization in connection with the receipt of state assistance, as well as in connection with the gratuitous receipt of property. These incomes are actually the organization's own capital, therefore, for the purposes of calculating the value of net assets, they are excluded from the short-term liabilities section of the balance sheet (line 1530).
Those. the formula for calculating net assets according to the balance sheet of the enterprise is as follows:
CHA \u003d (str. 1600-ZU) - (str. 1400 + str. 1500-DBP)
where ZU is the debt of the founders on contributions to the authorized capital (it is not separately allocated in the Balance sheet and is reflected in short-term receivables);
DBP - deferred income recognized by the organization in connection with the receipt of state assistance, as well as in connection with the gratuitous receipt of property.
Normal value
The indicator of net assets, known in Western practice as net assets or net worth, is a key indicator of the performance of any commercial organization. The organization's net assets must be at least positive. Negative net assets are a sign of the insolvency of the organization, indicating that the company is completely dependent on creditors and does not have its own funds.
Net assets should not only be positive, but also exceed the authorized capital of the organization. This means that in the course of its activities, the organization not only did not waste the funds originally contributed by the owner, but also ensured their growth. Net assets less than the authorized capital are allowed only in the first year of operation of newly created enterprises. In subsequent years, if net assets become less than the authorized capital, the civil code and legislation on joint-stock companies require that the authorized capital be reduced to the amount of net assets. If the organization's authorized capital is already at a minimum level, the question of its further existence is raised.
net asset method
In valuation activities, the net asset method is used as one of the methods for assessing the value of a business. With this method, the appraiser uses data on the net assets of the organization according to the financial statements, previously adjusted based on their own estimated values of the market value of property and liabilities.
Briefly: Various indicators are used to assess the financial stability of an enterprise.
The procedure for calculating net assets according to the balance sheet - formula 2017-2018
But the key is the calculation of net assets. To find out its value, you need to subtract liabilities from assets. At the same time, off-balance sheet accounts, deferred income and a number of other indicators are not taken into account.
in detail
Net assets - the difference between the value of the company's property and its debt obligations. This indicator can be both positive and negative. If it is greater than zero, it means that the enterprise has enough property to meet its debt obligations; if it is less, it means that there is a shortage. The indicator makes it clear how stable the financial position of the organization is.
A negative indicator is one of the prerequisites for the liquidation of an organization, especially if it is below the minimum allowable amount of authorized capital for the second year in a row (clause 11 of article 35 of the Federal Law of December 26, 1995 N 208-FZ).
When should you count?
You need to calculate net assets for an LLC when:
- preparation of the annual report;
- an increase in the authorized capital, if this occurs at the expense of property;
- the request of the person concerned;
- withdrawal of a participant from the company to determine its share.
In joint-stock companies, on the basis of this indicator, the cost of a block of shares of each of its members is also calculated.
Calculation scheme
In 2014, a scheme for calculating net assets appeared, defined by law (Order of the Ministry of Finance of the Russian Federation dated August 28, 2014 N 84n). As before, the data of the balance sheet are taken as a basis and liabilities are deducted from assets. However, the debt of the founders on contributions, the value of shares repurchased from shareholders, capital and reserves, deferred income should not be taken into account, since they are not directly related to either the actual property or the debt of the enterprise.
Calculation formula:
Ah \u003d A - ZC, where
- A - assets;
- ZS - borrowed funds.
Fig. 1. An example of an enterprise balance sheet
Objects on off-balance accounts are not accepted for accounting, namely:
- material values that the company has accepted for safekeeping;
- reserve funds;
- goods accepted for commission;
- strict reporting forms, etc.
It also does not include authorized, additional and reserve capital, deferred income, uncovered profit or loss.
The size of the authorized capital cannot be more than net assets. If, after balancing, this is not the case, then its value should be reduced to their size. However, it cannot be less than 10,000 rubles established by law. Otherwise, liquidation of the enterprise will follow.
In the balance sheet of the enterprise, net assets are indicated in line 3600.
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Intangible assets |
Long-term liabilities on loans and credits |
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fixed assets |
Other long-term liabilities |
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Construction in progress |
Short-term liabilities on loans and credits |
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Profitable investments in material values |
Accounts payable |
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Early and short-term financial investments |
Debts to participants (founders) for payment of debts |
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Other noncurrent assets |
Reserves for future expenses |
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Other current liabilities |
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VAT on purchased assets |
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Receivables |
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Cash |
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Other current assets |
Fig. 2. Calculation of net assets by example
Download the form for calculating net assets in excel
Although the scheme is general, valuation methods may also depend on the company's activities and legal form. So, for example, management companies must take into account Decree of the Government of the Russian Federation of December 27, 2004 N 853. Order of the Federal Financial Markets Service of the Russian Federation of October 23, 2008 N 08-41 / pz-n should be considered brokers, mutual funds, commodity exchanges.
Net assets on the example of specific organizations
The indicator is reflected in the balance sheet of any company.
For example, in OAO Gazprom in 2014 it amounted to 9,089,213,120 thousand rubles. Growth compared to 2013 - 720,047,660 thousand rubles. (8.6%).
Net assets of Akkobank in June 2015 decreased:
Negative indicators indicate the unstable state of the credit institution. But the data is only for a month, not a year. The situation may improve before the end of the year.
CMP JSC closed the year of 2014 with positive indicators.
Pyotr Stolypin, 2015-08-16
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Net assets
The concept of NA is regulated by the Civil Code of the Russian Federation, defining them as a liquidity criterion for an organization, regardless of its organizational and legal form. Net assets are the difference reflected in the balance sheet between the value of all types of property of the institution (fixed and cash assets, land property, etc.) and the amount of established liabilities (accounts payable of the organization).
Calculator for calculating net assets and the actual value of a share
NA is the own capital funds of any enterprise, in other words, the capital property that will remain at the disposal of the institution after the repayment of all debts to creditors and the sale of property objects.
The calculation of the value of net assets according to the balance sheet must be carried out annually during the preparation and preparation of annual financial statements. The calculated NA value demonstrates the real financial position of the enterprise as of the current date. The amount of net assets in the balance sheet is line 3600 in section 3 of the Statement of Changes in Equity.
How to Calculate: Formula for Calculating Net Assets
Calculation of NA is regulated by the Ministry of Finance of the Russian Federation through Order No. 84n dated August 28, 2014, which gives the concept of net assets - a formula. Its enforcement extends to the following types of organizational and legal forms of enterprises:
- public and non-public joint-stock companies;
- LLC - limited liability companies;
- SUE and MUP;
- production and housing savings cooperatives;
- business partnerships.
CHA \u003d (VAO + OJSC - ZU - ZVA) - (DO + KO - DBP).
Let's decipher the main terms of this formula:
- HLW - non-current (JSC);
- JSC - negotiable JSC;
- ZU - founders' debts to the institution for filling shares in the UK;
- ZVA - debt from the redemption of own securities (shares);
- DO - long-term liabilities;
- KO - short-term liabilities;
- DBP - return expected in future periods.
The formula for net assets on the balance sheet is as follows:
The value of net assets in the balance sheet, line 3600, is entered after its calculation in the "Statement of changes in capital", form according to OKUD 0710003.
All settlement procedures must be carried out in writing and certified by the accounting department, on a separate form developed by the enterprise independently and enshrined in the accounting policy.
How to calculate net assets from a balance sheet, example
Indicator analysis
NA must be calculated to fix the current financial condition of the enterprise. By studying their value, the owners draw conclusions about the efficiency and productivity of the business and decide on further investment or withdrawal of their funds. Net assets in the balance sheet, line 3600, show the owners how profitable their cash investments and equity of the institution are.
FA are essential for the analysis of financial and economic activities. They are also taken into account when paying dividends. NA must be positive, and their indicator must exceed the size of the authorized capital. When their value grows, management can conclude that the profit of the organization is growing. Negative net assets can be observed in the first year of the enterprise's operation - the most difficult period for functioning, when the NA can decrease and be significantly lower than the invested capital. In the case when the enterprise has been operating for a long period of time, and the NA is negative, this indicates that the organization is operating inefficiently and investments are not profitable.
The increase in net assets is associated either with a change in their value (for example, a revaluation of fixed assets), or with a change in the value of liabilities. Also, the increase in NA is made at the expense of additional investments of the founders, when additional capital is applied.
Order No. 84n dated August 28, 2014 of the Ministry of Finance of the Russian Federation (registered with the Ministry of Justice on October 14, 2014) approved a new procedure for determining the value of net assets. The Order will enter into force 10 days after its official publication. Accordingly, the normative acts that previously approved the rules for assessing the net assets of joint-stock companies, insurance companies and organizers of gambling were declared invalid.
Scope of the new procedure for determining net assets
The new procedure is applied by joint-stock companies, limited liability companies, state unitary enterprises, municipal unitary enterprises, production cooperatives, housing savings cooperatives, economic partnerships. It also applies to organizers of gambling.
The new procedure for determining net assets does not apply to credit institutions and joint-stock investment funds.
How net asset value is determined
The value of net assets is determined as the difference between the amount of the organization's assets accepted for calculation and the amount of the organization's liabilities accepted for calculation. Accounting items accounted for by the organization on off-balance accounts are not accepted for calculation when determining the value of net assets.
The value of net assets is determined according to accounting data.
Assets accepted for calculation of net assets
Assets accepted for calculation include all assets of the organization, with the exception of the receivables of the founders (participants, shareholders, owners, members) for contributions (contributions) to the authorized capital (authorized fund, share fund, share capital), for payment of shares.
At the same time, assets are accepted for calculation at the cost to be reflected in the organization's balance sheet (in net valuation minus regulatory values) based on the rules for estimating the relevant balance sheet items.
For example, as part of the assets accepted for calculation, the following are taken into account:
- fixed assets and intangible assets at residual value;
- inventories minus reserves for depreciation of material assets;
— accounts receivable less provisions for doubtful debts;
— financial investments for which the current value is not determined, minus reserves for depreciation of financial investments;
- receivables for advances received minus the amount of VAT calculated from this advance for payment to the budget.
Liabilities accepted for calculation of net assets
Liabilities accepted for calculation include all liabilities of the organization, with the exception of deferred income recognized by the organization in connection with the receipt of state assistance, as well as in connection with the gratuitous receipt of property.
At the same time, obligations are accepted for calculation at the cost to be reflected in the organization's balance sheet (in net valuation minus regulatory values) based on the rules for estimating the relevant balance sheet items.
For example, as part of the liabilities accepted for calculation, advances issued are taken into account minus the amount of VAT calculated from this advance and presented for a tax deduction in accordance with the rules established by paragraph 12 of Art. 171 and paragraph 9 of Art. 172 of the Tax Code of the Russian Federation.
Calculation of net assets by example
According to the balance sheet, we will calculate the net assets as of December 31, 2014:
1) assets accepted for calculation:
- non-current assets - 142,094 thousand rubles;
— current assets – 15,826 thousand rubles;
— minus accounts receivable of the founders on contributions to the authorized capital - (600 thousand rubles)
total assets accepted for calculation - 157,320 thousand rubles;
2) liabilities accepted for calculation:
— long-term liabilities – 31,245 thousand rubles;
— short-term liabilities – 45,297 thousand rubles;
— minus deferred income - (930 thousand rubles)
total liabilities accepted for calculation – 75,612 thous.
Net assets LLC
3) total net assets - 81,708 thousand rubles. (157 320 - 75 612).
See attachment for balance sheet
An example of calculating the value of a company's net assets
Sometimes it is necessary for the appraiser to conduct a "cursive" analysis of the general condition of companies. To do this, you can use information about the net assets of the company, which can be emphasized from the balance sheet.
Net assets reflect the real value of the company's property, excluding its debts.
Thus, net assets are the difference between the book value of all the company's assets and the amount of the company's debt obligations.
Where can I get information to calculate the company's net assets?
Data on the size of the company's net assets are contained in the financial statements. The value of net assets, determined at the beginning and end of the year, is indicated in the section on changes in capital (form No. 3), regardless of the legal form by all companies.
How to calculate the net assets of a company?
The procedure for calculating the amount of net assets for joint-stock companies is established by Order of the Ministry of Finance of Russia N 10n, Federal Commission for the Securities Market of Russia N 03-6 / pz dated January 29, 2003 *
*According to the Letter of the Ministry of Finance of Russia dated January 26, 2007 No. N 03-03-06/1/39 limited liability companies can use the rules developed for joint-stock companies.
The value of a company's net assets is understood as a value determined by subtracting from the sum of the company's assets, the sum of its liabilities.
Net assets are calculated on the basis of balance sheet data. At the same time, not all balance indicators are included in the calculation. Thus, it is necessary to exclude from the composition of assets the value of own shares bought back from shareholders, and the debt of the founders for contributions to the authorized capital. And as part of liabilities, capital and reserves (section III) and deferred income (code 640 section V) are not taken into account.
An example of calculating the net assets of a company
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Balance indicators |
Balance data |
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Balance asset |
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1. Non-current assets (section I): |
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— residual value of fixed assets (p. 120) |
RUB 1,500,000 |
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— capital investments in construction in progress (p. 130) |
RUB 1,000,000 |
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— long-term financial investments (p. 140- |
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2. Current assets (section II): |
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— stocks |
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- receivables, |
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including the debt of the founders on contributions to the authorized capital |
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- cash- |
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Balance liability |
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3. Capital and reserves (section III): |
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- authorized capital- |
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- retained earnings |
RUB 1,400,000 |
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4. Long-term liabilities (section IV): |
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— long-term loans |
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5. Current liabilities (Sec. How to calculate the value of net assets on the balance sheet of an organization |
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— short-term loans |
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- debt to the budget |
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— other short-term liabilities |
RUB 1,500,000 |
The asset item does not include the indicator of the debt of the founders on contributions to the authorized capital (30,000 rubles).
Asset \u003d 1,500,000 + 1,000,000 + 500,000 + 100,000 + 600,000 - 30,000 + 500,000 \u003d 4,170,000 rubles.
The amount of assets will be 4,170,000 rubles.
The calculation of liabilities will not include the data of Sec. III balance sheet (1,500,000 rubles).
Liabilities \u003d 800,000 + 300,000 + 100,000 + 1,500,000 \u003d 2,700,000 rubles.
The amount of liabilities will be 2,700,000 rubles.
CHA \u003d 4,170,000 - 2,700,000 \u003d 1,470,000 rubles.
The value of the company's net assets is 1,470,000 rubles.
What does a negative net asset value mean?
If the company's net assets are negative, then the company's debt exceeds the value of all the company's assets.
Insufficiency of assets is a term that is sometimes applied to a company with a negative net asset value.
“If at the end of the second and each subsequent financial year the value of the net assets of the company turns out to be less than its authorized capital, the company is obliged to announce the reduction of its authorized capital to an amount not exceeding the value of its net assets, and register such a decrease in the prescribed manner. If, at the end of the second and each subsequent financial year, the value of the company's net assets turns out to be less than the minimum amount of the authorized capital established by this Federal Law as of the date of state registration of the company, the company is subject to liquidation.
Article 20 of the LLC Law
Similar is stated in the law on joint-stock companies:
“If the value of the company's net assets remains less than its authorized capital at the end of the financial year following the second financial year or each subsequent financial year, after which the value of the company's net assets turned out to be less than its authorized capital, including in the case provided for in paragraph 7 of this article, the company, no later than six months after the end of the relevant financial year, is obliged to take one of the following decisions:
- on reducing the authorized capital of the company to an amount not exceeding the value of its net assets;
- on the liquidation of the company"
If you need a company valuation, please contact our valuation specialists.
DEFINITION
Net assets characterize the real value of the property of any company and are calculated by the following legal entities:
- Joint stock companies (JSC),
- Limited Liability Company (LLC),
- State enterprises, etc.
The formula of net assets makes it possible to assess the financial condition of the enterprise, its solvency and the level of risk of insolvency. The methodology for calculating net assets is regulated by the Legislation, being a tool for diagnosing the risk of bankruptcy of enterprises.
Net asset value
The net asset value is the difference between the assets and liabilities of the company. Using the net asset value formula, you can easily estimate the value of the organization's real assets.
If we analyze this indicator in dynamics, then it becomes possible to assess the financial condition of the company and its solvency. The value of net assets is used by regulated regulatory documents and legislative acts in order to diagnose the risk of bankruptcy of companies. If the growth rate of net assets falls, then this will lead to the following events:
- Decrease in financial stability,
- Decreased investment attractiveness.
Net Asset Formula
The assets include current and non-current assets, excluding debts of the founders on contributions to the authorized capital and the cost of repurchasing own shares.
Liabilities consist of long-term and short-term liabilities, excluding deferred income. The formula for net assets is the following equation:
CHA \u003d (A1 + A2 - Zuchr. - Zvyk.akts.) - (P2 + P3 - Dbp)
Here NA is the sum of net assets;
A1 - the amount of non-current assets;
A2 - the cost of current assets;
Zuchr. - debt of the founders (contributions to the Criminal Code);
Zva - costs (repurchase of own shares);
P2 - the amount of long-term liabilities;
P3 - the amount of short-term liabilities;
Dbp - deferred income.
The formula for net assets, which is calculated by the lines of the balance sheet, is as follows:
The net asset formula is calculated in enterprises for the following purposes:
- Assess the solvency and financial condition of the organization,
- Compare the amount of net assets with the amount of authorized capital.
After asset valuation, solvency is assessed, which is the company's ability to pay its obligations on time and in full. In the process of assessing solvency, 2 actions are performed:
- Compare the amount of net assets and the amount of authorized capital,
- Assess trends.
Examples of problem solving
EXAMPLE 1
EXAMPLE 2
| Exercise | Calculate the net assets of the two companies given the following: Line 1600 (book value of all assets) 1 company - 1,120,000 rubles, 2nd company - 850,000 rubles, Line 1530 (deferred income) 1 company - 68,000 rubles, 2nd company - 222,000 rubles, Line 1500 (total current liabilities) 1 company - 240,000 rubles, 2 company - 512,000 rubles. Line 1400 (total non-current liabilities) 1 company - 212,000 rubles. 2nd company - 815,000 rubles, |
| Decision | The formula for net assets for solving this problem is determined by the lines of the balance sheet and looks like this: NA \u003d p. 1600 - (p. 1400 + p. 1500 - p. 1530) NA (1 company) = 1,120,000 - (212,000 + 240,000 - 68,000) = 736,000 rubles NA (2 companies) = 850,000 - (815,000 + 512,000 - 222,000) = - 255,000 rubles Conclusion. We see that the second company has a negative net asset value, which indicates its critical position. |
| Answer | NA (1 company) = 736,000 rubles, NA (2 companies) = - 255,000 rubles. |
Calculation and analysis of net assets are relevant for company owners, investors, business partners, credit and insurance companies. The company's net assets is an indicator that is required to be calculated, in this article we will show which lines of the balance sheet it is calculated on, what consequences it has, what are the ways to increase it.
From the article you will learn:
Net assets are...
Net assets (NA) are the funds a company has from all of its assets less total liabilities. In other words, their value indicates how much money will be available to the company if they are needed to pay all existing debt, regardless of their maturity.
Important! It can often be seen that when determining net assets, the concept of the enterprise's own funds is used as a synonym. This is wrong, first of all, by the very essence of the concepts: NA is an asset of the company, and equity is a liability. These concepts are closely related, but not identical.
Calculation of NA is obligatory for organizations of different forms of ownership. There is no specific schedule for when to calculate this indicator; it is determined at least once a year and as needed.
Such a need may arise before the distribution of profits. Owners need to understand whether they can count on dividends that are paid out of net income. At the same time, the rule applies - if, as a result of such a payment, net assets become less than the authorized capital, it is impossible to pay dividends in the established amount.
For example, at the end of the year, the meeting of founders decided to transfer part of the profit to dividends - 250 thousand rubles. A balance sheet was drawn up reflecting the planned payments, which showed that the cost of NA would become less than the authorized capital. The decision to pay was cancelled.
Also, the need to calculate the NA arises if one of the founders decides to withdraw from the company. The actual value of the share of a member of the company is a part of the value of the CA LLC, it is proportional to the size of its share in the authorized capital. Such a share may be issued in cash or in kind in property (with the consent of the owner) within three months from the date of filing the application for withdrawal. The authorized capital in this case is reduced.
For example, one of the founders filed an application to withdraw from the LLC. At the time of the formation of the company, its share was 33.3%, and on the required date, its share was 25%. It is 25% of the NA that will be paid to the founder.
Calculation of net assets
It is not difficult to make a calculation - all the data for this are present in the company's financial statements, including the balance sheet. The balance sheet is a reliable source of information for determining the NA.
All transactions related to the amount of net assets must be accepted at the cost indicated in the financial statements. The procedure for calculating the NA on the balance sheet is determined by the Ministry of Finance of the Russian Federation.
Net Asset Formula
First way:
Net asset value \u003d (data for sections I and II of the balance sheet (line 1600) - indicators for sections IV and V (lines 1400 and 1500)) + (Deferred income (line 1530) - Debt of participants on contributions to the authorized capital (included in lines 1170))
The second method will give the same result, only we use the data of section III of the balance sheet as a source of information:
Net asset value \u003d Total amount for section III of the balance sheet (line 1300) + Deferred income (line 1530) - Participants' debt on contributions to the authorized capital (in line 1170)
The third way. The most detailed version, which leads to the same results (Fig. 1):
Rice. 1. Net assets: calculation formula
Each enterprise needs to develop a methodology for determining the NA and fix this procedure in its accounting policy. See more: sample organization accounting policy 2020. Indicators on off-balance sheet accounts in NA are not taken into account.
Calculation of net assets according to the balance sheet
Let's calculate the cost of NA using an example. We use the balance for 2018 of the public catering enterprise Krot LLC. Data are presented in thousands of rubles. (Table 1).
Table 1. Balance sheet of Krot LLC
Based on the report data, we will determine the NA for 2018. We use the first calculation method (see the formula above):
Net asset value \u003d (line 1600) - (lines 1400 and 1500) + (Deferred income (line 1530) - Debt of participants on contributions to the authorized capital (as part of line 1170)) \u003d 322 - 99 \u003d 223 thousand rubles.
Let's use the second option. The result will be identical:
Net asset value \u003d Total amount for section III of the balance sheet (line 1300) + Deferred income (line 1530) - Participants' debt on contributions to the authorized capital (as part of line 1170) \u003d 223 thousand rubles.
Third calculation method:
NA \u003d (VA + OA - DU - ZVA) - (DO + KO - DBP) \u003d 322 - 99 \u003d 223 thousand rubles.
Net assets of Krot LLC at the end of 2018 amounted to 223 thousand rubles. We found out that for the calculation you can use the total amounts of the balance sheet, sections or individual lines, the essence of this does not change - its obligations are deducted from the total value of the company's property and its rights.
We will tell you how to correctly identify assets and liabilities, evaluate them, and then, based on the data obtained, calculate the value of the company.
Help on net assets
Calculation of the cost of NA is issued in the form of a certificate. Since there is no unified form, the enterprise retains the right to present information in a free form. There are mandatory items that the document must contain (Fig. 2).
Rice. 2. Mandatory items to be reflected in the statement of net assets
It is allowed to provide information on net assets in a short form - only the value of the NA and in a detailed one, with a breakdown of all indicators. The form that the enterprise will use to formalize the data must be written in the accounting policy and approved by the manager.
Rice. 3 Certificate of net asset value of Krot LLC
Thus, NA is a transparent indicator, which, if necessary, can be calculated on the basis of interim or final reporting.
Analysis of net assets
After completing the arithmetic calculations, we proceed to the analysis and interpretation of the results obtained.
Net assets must be positive and exceed the authorized capital. This indicates the stability and solvency of the company.
Analysis of the company's solvency based on the calculation of net assets.
A negative value is an indicator of the company's low solvency. There is a high probability of imminent bankruptcy of the organization, inability to pay off debts. However, special circumstances must be taken into account in this situation. For example, a company has just been established and has not yet covered its costs, or a company has received a large expansion loan.
In addition to the fact that the amount of net assets needs to be known for a certain date, it is important to see their dynamics: growth or decline over a number of years. Let's carry out the analysis on the example of Krot LLC according to the balance sheet data from Table 1.
Rice. 4. Growth dynamics of net assets of Krot LLC
The net assets of Krot LLC have been steadily increasing over five years: from 45 thousand in 2014 to 223 thousand in 2018, despite the fact that non-current assets decreased for the first three years.
There are situations when the NA does not just decrease, but falls to a negative value. Tax inspectors analyze the financial statements of companies and identify those whose net assets are below the authorized capital. Let's consider what negative NA threatens the enterprise.
Negative net assets
The situation is considered natural when net assets are negative in the first year of operation - in this case, they may be lower than the authorized capital. By developing production, the enterprise reaches a profitable level and the NA begins to grow. If this does not happen, it is necessary to reduce the authorized capital to the level of net assets.
However, it is prohibited to reduce the authorized capital below the minimum. If the NA value is below the minimum authorized capital for more than two years, documents for voluntary liquidation should be submitted.
Before the expiration of the two-year period, the enterprise has the opportunity to take preventive measures to avoid a negative scenario. Once the NA is compressed below the capital specified in the Articles of Association, the owners must either increase the total amount of the NA or reduce the amount of the share capital. The owners must make a decision within the first half of the year after the reporting year.
If the company comes to a decision to reduce the authorized capital, it is necessary to notify creditors about this and report the event to the tax authorities within three days.
If the authorized capital is minimal and the equity is lower, there is a real threat of liquidation. The tax authority, on its own initiative, may file a claim for the liquidation of the enterprise with the arbitration court. In the lawsuit, they must substantiate their claim, but the final verdict is left to the discretion of the judges.
In considering each case, the courts carefully analyze the situation. If the company is able to fulfill its obligations to the budget and creditors, liquidation will be denied.
Increase in net assets
There are several ways to increase NA:
- additional investments of the company's participants;
- verification of accounts payable;
- revaluation of property in accounting.
Additional attachments members of the society in the authorized capital increase the amount in line 1310 of the balance sheet. This can be both money and property (if such an option is specified in the Charter). Non-cash funds are transferred to the bank account of the enterprise, valuables are transferred under the act.
For example, the general meeting of the company's participants decided to increase the authorized capital by 35 thousand rubles. Each member of the company made an additional contribution in proportion to the size of his share in the authorized capital of the company.
In addition, the founders can contribute to the replenishment of the reserve capital, displayed on line 1360 of the balance sheet. Such contribution does not increase the authorized capital. For example, the general meeting of founders decided to increase the reserve capital by contributing 45 thousand rubles to each of the founders.
Checking accounts payable consists in inventorying settlements with suppliers and business partners and writing off debts that are in excess of the statute of limitations.
For example, the company received from the supplier goods in the amount of 54 thousand rubles. and did not pay for delivery. No due date was set and the supplier did not take any action to collect the debt for the next three years. After the expiration of the limitation period, the head of the company, based on the results of the inventory, issued an order to write off this debt.
It is important to note that this method leads to an increase in the tax base.
Revaluation of property in accounting . It can be increased by revaluing intangible assets: the results of scientific research, databases, inventions, trademarks, and the like.
For example, a company with 90 employees is engaged in the design and development of databases. In order to increase the NA, a revaluation of the object of intangible assets was carried out - exclusive rights to the invention. The initial book value of the object after the revaluation increased by 17 thousand rubles, which amounted to the revaluation amount.
You can also increase additional capital by revaluing fixed assets. Such reassessment can be carried out no more than once a year. Property, plant and equipment are revalued by bringing the historical cost in line with their market price.
For example, an organization has revalued fixed assets, bringing their initial cost in line with the market price. The depreciation factor was calculated and the amount of depreciation was recalculated. As a result, the cost of fixed assets increased by 83 thousand rubles.
It is important to remember that revaluation increases the amount of depreciation and reduces the profit of the organization.
It must be understood that the listed methods of increasing the NA will not lead to an increase in the efficiency of the enterprise, they will only give a delay in order to improve the situation not only in the balance sheet, but also in practice.
In order to assess what the financial position of an enterprise is in a particular period, it is worth carefully examining the balance sheet at the reporting date. It is in it that the main digital indicators of its activities are indicated. To correctly carry out all the rules, special formulas have been created.
Calculations require special accuracy in order to correctly determine the state of affairs in the enterprise.
The essence of the concept of net assets
One of the most important indicators is the size of net assets (hereinafter NA).
The reason for this is that this indicator is the size of the property of the enterprise, from which all the obligations that it has to the partners of its activities have already been deducted.
This litmus of the financial independence of the company is regulated by the Ministry of Finance of the Russian Federation, as well as the Federal Commission, which controls the operation of the securities market. Their instructions were developed for LLCs, but due to the fact that for other types of organizations this concept is not singled out separately in the regulatory act, therefore, the Decree also applies to other organizational forms of conducting economic activities of companies.
Net assets are considered the most effective indicator of the state of the company at the date of determination of this indicator.
It is by their size that they evaluate:
- the financial health of the organization;
- the effectiveness of the company's chosen strategy;
- the financial viability of the company;
- the value of the shares of business participants.
NA is one of the most important indicators of both the balance sheet and the activities of the company as a whole. Therefore, their definition and maintenance at a decent level should be given maximum attention.
What is included in the structure of the CHA
In the simplest sense, this indicator indicates the amount of own property of the owners of the company. That is, this is what will remain with them after paying all their debts to partners, government agencies and other persons to whom the company owes.
In other words, the essence of this concept can be expressed as the difference between the figure of absolutely all the assets of the enterprise, as well as its liabilities. It is these indicators that make up the structure of this indicator.
All assets are made up of certain lines of one of the most important accounting documents, the balance sheet:
- a group consisting of elements of the non-current property of the enterprise;
- assets that are in circulation throughout the core business of the company.
The first group is the data from the first part of the balance sheet.
It includes:
- intangible property;
- fixed assets;
- construction work that has not yet ended;
- investments in material values, which are deposits with the aim of obtaining maximum income;
- investment for a long period.
The second group of structural elements for calculating the specified indicator should be sought in the next part of the main accounting document of accountants.
Financiers refer to the group of assets in circulation the following data on the company's activities:
- stocks, as well as VAT on acquired property, liabilities of debtors;
- short-term investments;
- cash resources, as well as other funds in circulation.
Do not include in the structure of the NA the actual expenditures that took place when buying shares into one's own possession, for the planned resale or destruction. In addition, uncontributed share funds of shareholders in the authorized capital should not be classified as current assets.
Liabilities that reduce net assets include:
- debts on short-term loans;
- amounts required to repay long-term loans;
- accounts payable;
- unpaid profits of investors and shareholders;
- reserve amounts of income;
- other obligations received for a short period of time.
Components can be any other indicators that inherently relate to the resources of the company or its obligations to creditors.
The calculation of the value of net assets can be found in the video.
Where to look for data to calculate the NA
Net assets are the property of the owners of the company that would remain with them if they returned the amounts of all their creditors. Each of the indicators necessary to calculate this figure must be sought in the balance sheet for the current period, which is taken for calculation.
Attention should be paid to both sections of this financial document. Almost all indicators of each section must be taken into account in the calculations.
The exception is the amounts contributed by the founders to replenish the authorized capital, since these indicators are already taken into account in other lines of the balance sheet. In addition, the amount of the authorized capital itself and profit, which is still classified as undistributed, is not taken into account.
They are displayed in section No. 3 called "Capital and reserves".
All other indicators must be taken into account when calculating the net assets of the enterprise. That is, to determine this amount, all information can be obtained from the balance sheet.
Calculate the size of NA at the beginning and at the end of the year. It is indicated in the lines on changes in the capital of financial form No. 3 by all organizations, regardless of the form of business organization.
Calculation of net assets according to the balance sheet: definition formula
To find out the size of the NA, it is necessary to calculate according to the formula, which is already obtained from the very concept of this term.
But, based on the balance sheet data, it will have a slightly more specific form, namely:
NA = STRb 1600 (or STRb 1100 + 1200) - non-payment of the founders (STRb 1400 + STRb 1500),
In addition to balance sheet indicators, you can also take into account accounting data. The essence of this calculation is to carry out the calculation using the amounts that are on certain accounting accounts.
In this case, the formula will look like this:
NA \u003d STRb 1300 - 75 + credit balance on account 98,
- line 1300 of the balance sheet is capital and reserves;
- on the debit of account 75 is the amount of participants' debt on contributions to the authorized capital, and the credit balance on account 98 is deferred income.
Correct calculation of NA by example
To calculate net assets, it is necessary to evaluate one of the cases using an example.
| Assets | Amount, rub. |
|---|---|
| 1. Non-current: | |
| — funds | 1,000 thousand |
| — capital investments in construction in progress | 500 thousand |
| — long-term investment | 300 thousand |
| 2. Negotiable: | |
| — stocks | 100 thousand |
| - accounts receivable | 400 thousand |
| including Unpaid amounts by the founders to replenish the UK | 50 thousand |
| Balance liability | |
| 3. Capital and reserves | |
| – UK | 100 thousand |
| — Retained earnings | 900 thousand |
| 4. Long-term debt: | |
| — long-term loans | 500 thousand |
| 5. Loans for a short period: | |
| — short-term loans | 200 thousand |
| - debt to the budget | 100 thousand |
| — other liabilities of a short-term nature | 800 thousand |
In this case, the calculation will be carried out as follows:
A-c \u003d 1000 thousand + 500 thousand + 300 thousand + thousand + 400 thousand \u003d 2,300 thousand (rubles)
As you can see, the amount of 50 thousand rubles was not taken into account, since the unpaid amounts of the founders for the authorized capital are not taken into account.
P-v \u003d 500 thousand + 200 thousand + 100 thousand + 800 thousand \u003d 1600 thousand (rubles).
Liabilities do not take into account the indicators of capital and reserves.
That is, the indicator of net assets on the balance sheet of the enterprise with the specified data will be equal to:
NA \u003d 2300 thousand -1600 thousand \u003d 700 thousand (rubles).
A fairly good indicator of the company's financial performance.
Other ways to calculate net assets
But these calculations are a formula developed by the Ministry of Finance.
Practicing accountants have a slightly different approach to the calculation, which involves a slightly adapted scheme for determining the size of net assets:
Net assets \u003d (STRb1600 - account 75) - (STRb1400 + STRb1400-STRb1530).
This formula does not absolutely exclude the one developed by the Ministry of Finance, on the contrary, it even more fully reflects the recommendations of the Decrees of this state structure on the calculation of the net asset.
Why are NAs negative?
An indicator is considered negative when the amount of net assets has a negative value. This condition indicates that the company owes more than it has.
If you have to immediately return all the debts, then it will remain bankrupt.
In firms where a minus NA has arisen, the term of insufficiency of property is used to describe the state. It indicates that the company is obliged to reduce the parameter of its authorized capital or stop activities.
According to Article 20 of the LLC Law, if the company's net assets on a specific date are less than those established by the Federal Laws on the registration and activities of enterprises, then liquidation is assumed.
A negative net asset value balance indicates businesses and their creditors, as well as loans.
Why is it important to control HA?
It is the net assets, that is, their size, that are very informative in the process of determining the performance of the company. Their size determines the financial viability and independence of the company.
If the enterprise plans to continue its activities, then the NA must have a positive indicator.
In addition, the success of the company requires their excess over the level of authorized capital.
This will indicate that the company was able not to waste the initial contributions, but even increased them. This will be ensured by the effective operation of the company in the chosen direction, which will be aimed at maximizing the satisfaction of the interests of customers, which will lead to the sale of their goods and services.
Learn about the method of calculating net assets from the video.
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