We talked about in separate consultations, cited them, and also considered the issue. In this material, we will dwell in more detail on the book value of assets.
What book value enterprise assets?
The total amount of assets on the balance sheet is the book value, that is, the value at which assets are reflected in the balance sheet.
In relation to the approved form of the balance sheet (Order of the Ministry of Finance dated July 2, 2010 No. 66n), the book value of assets is the balance line 1600 "Balance". This is the answer to the question of how to calculate the book value of assets on the balance sheet.
The value of assets on the balance sheet is the main indicator that characterizes the financial position of the organization on reporting date.
The sum of the assets of the balance sheet is an indicator that reflects the total book value of all types of assets of the organization. The procedure for determining the book value of assets is disclosed in the relevant normative documents governing accounting. At the same time, it is important to take into account the main requirement for the reflection of assets in the balance sheet: they are reflected in the net valuation, that is, minus the regulatory values (paragraph 35 of PBU 4/99).
Thus, fixed assets are reflected in the balance sheet at residual value. The residual value of fixed assets is their initial (replacement) cost, reduced by the accrued depreciation. In accordance with the Chart of Accounts (Order of the Ministry of Finance dated October 31, 2000 No. 94n), the residual value of fixed assets (C OST) at any reporting date is determined as follows:
C OST \u003d D 01 - K 02,where D 01 - debit balance on account 01 "Fixed assets";
K 02 - credit balance account 02 "Depreciation of fixed assets".
Similarly, at residual value are reflected in the balance sheet intangible assets.
Book value accounts receivable is shown net of created provisions for doubtful debts, and reserves - net of allowance for impairment material values.
The form of the balance sheet allows not only to answer the question of how to determine the book value of assets on the balance sheet, but also to calculate their average value.
The indicator of the average value of assets-net can give a more realistic idea of the value of assets, smoothing out possible sharp fluctuations that have arisen at one of the reporting dates.
The average annual value of assets on the balance sheet (A SG) is their arithmetic average value for a calendar year, which is determined as follows:
A SG \u003d (A NG + A KG) / 2,where A NG is the value of assets according to the balance sheet at the beginning of the year;
And KG - the value of assets on the balance sheet at the end of the year.
Considering that assets are shown in the balance sheet as of December 31, the value of assets at the beginning of the year corresponds to the balance of line 1600 as of December 31 of the previous year, and the value of assets at the end of the year corresponds to the balance of line 1600 as of December 31 previous year.
Let's show this with an example.
According to the balance sheet for 2016, the value of the organization's assets amounted to (in thousand rubles):
In this way, average annual cost the organization's assets for 2016 will be calculated in the amount of 115,455 thousand rubles. ((127 234 + 103 676) / 2).
Average asset value- this is the arithmetic average of the value of the company's assets at the beginning and end of the year.
The data is the balance sheet line 300 "Balance total".
Average asset value = (Asset value at the beginning of the year + Asset value at the end of the year) / 2
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Back to Active balance
An asset on the balance sheet is said to be "current" if it is expected to change its form within one year from the date of the balance sheet. Such assets are inventories (IPZ), receivables and cash. The balance sheet may also reflect current assets - short-term investments. The one year period is a rough rule of thumb for establishing a more fundamental distinction between those assets that will be used in business operations (fixed capital) and those assets that are part of working or trading capital. So, just as an investment can be long-term or short-term, cars can be fixed assets (if they are part of a company's fleet of vehicles) or current assets (if they are part of a car dealer's inventory). Strictly speaking, no one can expect the current asset to turn into cash within a year, but it must be in circulation as stated above. For example, inventories can be sold to buyers on credit, which slows down cash flow.
Linking current assets to realizable value increases their market value (usually net realizable value). Thus, although the market price of fixed capital is usually neglected when accounting for historical cost, it is not ignored for current assets. First, the notes to the balance sheet can show the market value of some current assets. Secondly, the assessment of balance sheet indicators is carried out using the rule of the lowest of two values: cost and market value. During periods of rising prices, this usually results in the use of historical cost. However, the constantly implied possibility of a lower market value is an example of the use of the inherent principle of conservatism in accounting. In British balance sheets, current assets are shown after fixed capital, as well as in ascending order of liquidity (the last heading is "Cashier"). It is customary for American balance sheets to start with current assets. The expression net current assets (or "working capital") means current assets minus current liabilities. The ratio of current assets to current liabilities is called the liquidity ratio.
Current assets are the resources of the enterprise that are not intended for long-term use. These include inventory and costs, short-term receivables, and other liquid assets that can be converted into cash within a production cycle or year. You can find current assets using the company's financial statements.
1. Open the company's balance sheet for the date you need. The cost of current assets at the beginning and at the end of the period is indicated in line 290 (total of section II of the balance sheet). Determine their dynamics for the period by calculating the difference between these figures.
2. Calculate the average value of current assets for the period using the formula: Атс = (Ат1+Ат2)/2, where:
Am1 - current assets of the enterprise at the beginning of the period;
Am2 - current assets of the enterprise at the end of the period. Then you can analyze the effectiveness of their use.
3. Calculate the return on assets of the enterprise according to the formula: Ra = P / Ats x 100%, where:
- П - net profit for the analyzed period;
- ATS - the average value of the current assets of the enterprise for the period.
Determine the amount of the company's net profit on line 190 of the Profit and Loss Statement.
4. Divide the amount of the net profit of the enterprise by the calculated average cost enterprise assets.
Multiplying the resulting ratio by 100%, get the profitability of the company's assets for the analyzed period. This indicator characterizes the amount of profit attributable to each ruble of their value. It is considered optimal if it is 18-20%.
5. Find the turnover of current assets using the formula:
About \u003d (V / Ats) * Kdn, where:
B - sales revenue for the reporting period (without VAT);
Ats - the average value of the current assets of the enterprise;
Kdn - the number of days of the reporting period.
Take the revenue from the income statement for the analyzed period. After dividing it by the average value of current assets, multiply the resulting figure by the number of days in the reporting period.
6. Calculate the turnover of current assets for previous reporting periods, analyze the dynamics of changes. The lower the score, the better. economic efficiency reduction of the asset turnover period is expressed in the release of additional funds from circulation and, as a result, in an increase in the profit of the enterprise.
7. Keep in mind that as the turnover period decreases, less inventory is required. This reduces storage costs. Accordingly, a slowdown in turnover leads to an increase in the value of current assets and additional costs. Thus, timely calculation and analysis of the state of assets will make it possible to make the right decisions on managing their use.
The chronological average is average level a series of dynamics, i.e., the average, calculated on the basis of the totality of the values of the indicator at different moments or periods of time.
Depending on the type of time series, various methods of its calculation are used, namely, the calculation of the average chronological interval series and the average chronological moment series.
The average chronological interval (more common) series is the average value of the levels of the interval series of dynamics, which is calculated by the formula:
where is the average level of the series;
- the level of a series of dynamics;
- the number of members of the series
For example, consider data on children's health facilities in Pskov and the region.
Table. Children's health institutions
The studied series is an interval one, using the chronological average formula, we can calculate the average number of health facilities:
institutions.
The average chronological moment series is the average value of the levels of the moment series of dynamics. If there is a function expressing the change in the moment indicator over time, then for the time from to the average chronological moment series is equal to:
However, as a rule, there are no data on continuous observation of the value at the disposal of statistics. Therefore, depending on the nature of the change in the indicator and the available data, different methods of calculation are used.
With equal time intervals between the dates for which data are available, and a uniform change in the size of the indicator between dates, the chronological average of the moment series is usually calculated by the formula:
where is the level of the series;
is the number of all members of the series;
- average level.
If the time periods separating one date from another are not equal to each other, then the average chronological moment series is calculated using the weighted arithmetic average formula, the weights of which are taken as time intervals between dates, i.e., according to the formula:
where is the time during which the given level of the series remained unchanged.
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The assets of the company include the value of the resources that provide the production process of the enterprise.
Assets include:
Asset accounting is mandatory for most Russian enterprises. All assets are concentrated on the left side of the balance sheet and are divided according to purpose:
To calculate the average amount of assets of the enterprise for the year, it is necessary to add the value of assets at the beginning and end of the year. This sum is then divided by 2 or multiplied by 0.5.
The formula for the average annual value of assets on the balance sheet uses data financial statements.
AT general view the formula for the average annual value of assets on the balance sheet is as follows:
SA cf = (SAnp + SAkp) / 2
Here CA av is the average annual value of assets,
SANP - the value of assets at the beginning of the period,
SAkp - the value of assets at the end of the period (year).
The formula for the average annual value of assets on the balance sheet allows you to calculate both the assets of the enterprise as a whole and separately for current and non-current assets.
The total assets of the enterprise are recorded in line 1600 of the balance sheet, which is compiled by accountants at the end of each year. Using this formula, the balance sheet indicators for several years are used, while the indicator for line 1600 is taken from the balance sheet for each year, summed up and subsequently divided by 2.
In the case of settlements on current assets, the formula for the average annual value of assets on the balance sheet will require information from line 1200 of the balance sheet. If it is necessary to calculate non-current assets, then the accountant uses the indicators for line 1100 of the balance sheet. You need to use indicators in a similar way by finding the average value of assets and comparing balance sheet data for the corresponding years.
The average annual value of assets, which is calculated by analysts, is used in the future when calculating coefficients that can characterize the state and efficiency of any enterprise:
Also, the indicator is used in order to find the reasons that led to changes in the operation of the enterprise, and to make decisions in the field of resource management.
Average annual value of assets can give a more accurate understanding of the size and value of assets, while it levels out circumstances that could distort the real amount of assets.
If the indicators of asset turnover of different enterprises for different years are compared, then it is necessary to check the uniformity of the assessment of the average annual amount of assets.
BALANCE 1600 is the sum of indicators in lines 1100 and 1200, that is, the sum of non-current and current assets.
These are all assets that an enterprise uses to generate financial results.
The more of them, the higher the economic potential of the organization.
This line (also called “assets”, “balance sheet currency” or “balance sheet total”) is one of the absolute economic indicators of the enterprise's activities used in the service to characterize the scale of the enterprise's activities and the results achieved.
Line 1600 of the balance sheet
Not standardized
Not standardized
Not standardized
Usually a positive factor, especially if accompanied by more rapid growth revenues and profits. Otherwise, it is a negative factor.
Usually a positive factor if accompanied by an increase in revenue and profit. Otherwise, it is a negative factor, especially if revenue and profit are declining faster than the decline in total assets.
Notes
The indicator in the article is considered from the point of view of not accounting, but financial management. Therefore, sometimes it can be defined differently. It depends on the author's approach.
In most cases, universities accept any version of the definition, since deviations in different approaches and formulas are usually within a few percent at most.
The indicator is considered mainly free service the financial analysis online and some other services
If after calculating the indicators you need conclusions, please see this article: financial analysis conclusions
If you see any inaccuracy, typo - also, please indicate it in the comment. I try to write as simply as possible, but if something is still not clear, questions and clarifications can be written in the comments to any article on the site.
Sincerely, Alexander Krylov, anfin.ru
Section: Indicators and ratios of financial analysisTags: Absolute economic indicators, Balance sheet
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Back to Asset Value
The average value of assets is the arithmetic average of the value of the company's assets at the beginning and end of the year.
Average asset value formula:
Average asset value = (Asset value at the beginning of the year + Asset value at the end of the year) / 2
Determine the value of the company's assets at the beginning and end of the year according to the balance sheet. Its value is reflected in line 300 "Balance total".
Calculate the average annual asset value using the formula:
Asp \u003d (A1 + A2) / 2, where:
- A1 - the value of the company's assets at the beginning of the year,
- A2 - the value of assets at the end of the year.
To do this, add up the data for term 300 “Balance Total” at the beginning and at the end of the year. By dividing the amount received by two, you will find the average annual value of the company's assets for the analyzed period.
Calculate, if necessary, using the same formula, the average annual value of non-current and current assets, using the results of the balance sheet in section I "Non-current assets" or in section II "Current assets". Having made similar calculations according to the data financial reporting for previous periods, analyze changes in the composition of the property of the organization, identify the reasons that influenced these changes, make the necessary decisions for the effective management of the company's resources.
Estimated data on the average annual value of assets are also used in calculating property profitability ratios, asset turnover ratios and other indicators characterizing financial condition enterprises. Analysis and identification of factors influencing changes in them, allows you to effectively manage the assets of the enterprise in the course of its economic activity.
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Working capital refers to an important part of the property of any enterprise. During one production cycle, these resources completely change their material expression into a monetary form. Therefore they are called mobile part property.
The share of working capital in assets is under constant control of the analytical service.
The lack and excess of these resources is equally bad for the results of the company. If the amount of working capital accumulates, the rate of their turnover decreases. Because of this, profits are reduced.
Flaw mobile means accompanies downtime, failures during the production cycle. It also has a negative impact on financial results. Therefore, the standards and approaches to the analysis of assets in circulation deserve careful consideration.
The working capital of a company consists of inventories, materials, short-term investments and receivables. They become finished products and implemented during the operating period. The cycle ends when the funds from their sale are returned to the organization's accounts. 
The share of working capital in assets is under constant control financial services. In addition to the fact that the amount of the company's profit depends on the turnover rate, these resources form the investment rating of the company.
The fact is that such property can most quickly be converted into cash. Accordingly, the more mobile resources a company has at its disposal, the faster it will be able to pay off creditors if necessary. Therefore, these funds are called liquid.
The presence of working capital in an amount commensurate with or greater than the company's short-term obligations guarantees the return of credit funds on time (for the operating period). 
The concept of liquidity has incorporated several definitions. It, firstly, makes it possible to quickly respond to the occurrence of financial difficulties. Secondly, liquidity allows you to increase the balance sheet according to the growth in sales. Thirdly, it guarantees the timely return of short-term obligations.
Sufficient liquidity of property opens up new opportunities and benefits for the enterprise. It means full management control over its assets, as well as financial stability.
If this indicator is normal, then the company's management competently manages the property entrusted to it.
The insufficient share of working capital in assets leads to a number of problems. First of all, production suffers. The lack of raw materials, materials is reflected in the speed of production of finished products. When the technological cycle slows down, the amount of profit decreases.
In addition, the lack of liquidity in the structure of the balance sheet leads to a partial or complete loss financial independence. Sometimes the company may even face bankruptcy. 
Lenders cannot receive their funds and interest within the agreed time frame. This lowers the investment attractiveness rating of the company. She has to work in the most adverse conditions. Therefore, the share of working resources and liquidity should not be lost from the field of view of the financial service of the enterprise.
In order to correctly understand what constitutes liquidity, the formula of which will be presented below, it is necessary to consider the logic of calculations. It involves consideration of the total amount of current assets, as well as their structure. Total (or current) liquidity is calculated as follows:
Ktl \u003d OA / KO, where OA is the average annual amount of the current part of assets, KO is short-term liabilities. 
The data for evaluation is taken from form No. 1 of the financial statements - balance sheet. In this case, liquidity, the formula of which was presented above, will look like this:
Ktl \u003d (s. 1240 + 1220 + 1250 + 1232 + 1260 + 1231) / s. 1600
However, this is the most common indicator. The fact is that the property of the company is characterized different speed turnover. Therefore, the structure should be considered separately.
Apart from current liquidity, necessarily evaluate its intermediate and absolute value. The share of own funds in current assets is also investigated. Intermediate liquidity does not take into account the slowest-moving inventory as part of current assets. The formula will be:
Kpl \u003d (OA - Z) / KO, where Z - reserves.
Cash is the most liquid asset. Therefore, this balance sheet item must also be paid attention to. Absolute liquidity calculated like this:
Kal \u003d DC / KO, where DC is cash. 
Assessing the share of working resources in total assets, one cannot ignore the security of the company with its own working capital. The coefficient will look like this:
Ksos = (KO - ON) / OA, where ON are non-current assets.
A certain value should have a share of working capital in assets. The standard is set in accordance with the type of industry in which the enterprise operates. Each type of liquidity indicators also has its own boundaries. 
Thus, most domestic and foreign companies maintain a current liquidity ratio of at least 2. That is, working capital should exceed current debt by 2 times. But this is not the only criterion.
Intermediate liquidity must comply with the standard 0.7-1. It is not desirable to reduce the indicator below 1, but it all depends on the industry. Absolute liquidity is normally 0.2-0.5. The minimum allowed value is 0.1.
The indicator of the provision of turnover with own sources of financing should not fall below 0.1. The fulfillment of all these conditions indicates the correct structure of the balance sheet, as well as the financial stability and investment attractiveness of the company.
If we calculate the share of working capital in assets and compare the result with the standard, we can conclude that it is expedient to distribute property according to balance sheet items. A significant excess of the coefficients over the established values is not welcome. The accumulation of funds in stocks, receivables leads to an increase in the turnover cycle.
Having studied such a concept as the share of working capital in assets, it is possible to conduct a correct analysis of the balance sheet structure. Based on the data obtained, the main indicators of liquidity and provision with own sources of financing are optimized. This increases the stability of the organization and leads to higher profit levels.
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Average annual cost of working capital is the sum of the value of working capital at the beginning and end of the period, divided by 2.
Average annual cost of working capital = (Working capital at the beginning of the period + Working capital at the end of the period) / 2
Synonyms
Average working capital
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The company's assets are the resources, expressed in value, that support the production process. These include non-current assets (buildings, structures, work equipment, machines, vehicles, as well as goodwill, software products, which are intangible assets) and current, i.e. money on hand and on bank accounts, inventories, debts of debtors, short-term investments and others. Our publication is devoted to such a concept as the book value of assets. Where to look in the balance sheet, as well as find out how the book value and average annual value of assets are calculated is the topic of this article.
Asset accounting is a mandatory component of most economic calculations. All assets are accumulated on the left side of the balance sheet and are divided by purpose:
▪ in the first section of the balance sheet (final line 1100) non-current - fixed assets and intangible assets, accounted for at residual value, i.e. minus depreciation;
▪ in the second (final line 1200) – current inventories involved in the production process, finances, liabilities, investments.
According to the laws of the balance structure, both of its first sections, combined together, constitute the full value of the company's property. Their sum is the book value of assets. Where can I see this indicator in the balance sheet? Line 1600 is the final value, showing the balance of assets in value terms at the reporting date.
Based on the fact that the book value of assets is the balance line 1600, in mathematical interpretation it is written by the formula:
Page B 1100 + Page B 1200.
Economic services calculate the value of assets for various purposes. In particular, find out the absolute value of the property as a whole or by its constituent elements, for example, exclusively fixed assets, intangible assets or liabilities. Informing partners and users - investors, founders, insurers is the responsibility of the enterprise, and they have the right to request various information, and first of all, about the state of assets. For them, a “Reference on the book value of assets” is provided, which is based on the specified calculation formula and, although not obligatory form, but compiled quite often. We will learn how to calculate the book value of the company's assets, and for what purposes such calculations are carried out.
Required book value of assets , First of all, when analyzing financial activities companies - the main tool for assessing the production and financial condition of the company. Use this indicator when calculating intracompany values:
▪ property profitability, which determines the amount of profit that the company receives from each ruble invested in the purchase of raw materials and the production of the product.
▪ asset turnover, demonstrating the efficiency of their use.
Legislators have established the obligation to establish the amount of assets when concluding major transactions. To determine the value of the transaction, the book value of assets and the value of property sold under the concluded agreement are calculated. If the amount of assets being sold exceeds a quarter of the value of all assets on the balance sheet, then the transaction is recognized as a major one. In order to implement such an agreement, it is necessary to fulfill the conditions of the current legislation - to achieve a positive decision of the meeting of shareholders on the issue of the sale of property. In addition, it is necessary to correctly calculate the value of assets . If this value is set incorrectly or not calculated at all, the transaction can legitimately be declared void or terminated. Consider how to determine the book value of assets on the balance sheet:
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Name of indicator |
Line code |
as of 31.12.16 |
as of 31.12.15 |
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1. Non-current assets: |
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Total for 1 section |
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2. Current assets: |
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VAT on purchased assets |
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Accounts receivable |
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Cash |
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Total for 2 sections |
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BALANCE |
From the universal form of the balance sheet, where the calculation formula is already laid down, it is easy to understand how to calculate the book value of assets on the balance sheet: line 1600 accumulates the values of lines 1100 and 1200, i.e.
689 535 tr. + 6 563 tr. = 696,098 tr. - the book value of assets at the end of 2016, and 721,048 tr. + 9 559 tr. = 730 605 thousand rubles – the amount of assets as of December 31, 2015.
In turn, lines 1100 and 1200 are added up from the sum of the lines included in the corresponding sections. Each line contains information about the presence of the corresponding assets.
For example, as of December 31, 2016, the company has intangible assets in the amount of 35 thousand rubles, fixed assets - 689,500 rubles, reserves - 3420 rubles. etc.
Analyzing line-by-line values, for example, comparing the values of line 1210, the economist builds the dynamics of changes in the availability of an asset over control periods of time. In the course of analytical work, an economist is faced with such a concept as the market value of assets , representing the price of the property at which it can be realized at the moment. This value cannot be seen in the balance sheet and is used only as a marker that determines the value of existing assets.
The sum of the assets of the balance sheet is only an absolute indicator stating the value of the existing property, but for a more detailed analysis of changes in the composition of assets and the calculation of the set of necessary values, the average annual value of the assets will be required.
A cf \u003d (A n + A k) / 2,
where A n - property at the beginning, A k - at the end of the period, 2 - the number of reporting dates.
Let's take the values from the above balance sheet.
A cf = (696,098 + 730,605)/2 = 713,351.5 tr.
Using this algorithm, we calculate the average cost:
▪ Fixed assets – (689,500 + 721,000)/2 = 705,250 thousand rubles
▪ reserves (3420 + 5421)/2 = 4420.5 t.r.6
The average value of assets, calculated for the year, is used by analysts to calculate coefficients that characterize the financial condition of the company, determine the reasons for the changes and make decisions on further resource management.
