Calculation of the net assets of the enterprise: formula

In conditions of independence of business entities, the assessment of the financial condition and investment attractiveness of the enterprise is of great importance. For this purpose, as part of economic analysis, many criteria have been developed, but a special place among them is given to the indicator of net assets. How to do it correctly, you will learn from this article.

Definition

In world practice, net assets have been used for many years, while in Russia they have appeared relatively recently. In 1995, this indicator was introduced into the Civil Code of the Russian Federation as a normative one, which reflects the procedure for the formation and change of the authorized capital. Although 20 years have passed, but today in the economic literature there is no clear approach to calculating its value. But this indicator appears in the financial statements in form No. 3 “On changes in capital”.

The net assets of an enterprise (NA) is the difference between the adjusted sum of an organization's resources and its liabilities. In other words, this is the value of the company without debt. The procedure for calculating net assets is approved in the order of the Ministry of Finance No. 10-n. It is valid for enterprises of all forms of ownership. Calculation of net assets of credit institutions is carried out according to the relevant instruction of the Central Bank. Valuation is carried out once a quarter, as well as at the end of the year. This figure is displayed in the financial statements.

If at the end of the second and any subsequent year, the value of NA is less than the authorized capital (AC), then the organization needs to declare a decrease in the CA and register this operation in the prescribed manner. If, after the changes, the amount of capital is less than the norm established by law, then such an enterprise is subject to liquidation.

Calculation of net assets: formula

The following balance sheet items are used to determine the NA value:

1. Non-current assets - the first section of the balance sheet, which includes intangible assets, fixed assets, WIP, investments in values, long-term financial investments and other resources.
2. Current assets - the second section of the balance sheet, which includes stocks, VAT on purchased materials, remote sensing, financial investments for the short term, cash and other resources. The cost of the OA does not include the actual costs of buying back the shares of the JSC organization for the purpose of their subsequent resale or cancellation, as well as the debt of the founders on contributions to the authorized capital.
3. Long-term liabilities on received loans and credits.
4. Short term debt.
5. Liabilities for bank loans.
6. Indebtedness to shareholders for the payment of dividends.
7. Reserve for future expenses.
8. Other current liabilities.
9. NA = Assets - Liabilities

This is how net assets are calculated. The formula presented above is used to calculate this indicator at enterprises of all forms of ownership, except for organizations that carry out insurance and banking activities.

Other Methods

Other regulations describe other schemes for calculating the NA. For example, in the "Methodological recommendations" it is indicated that the amount of assets should not include such a balance line as "VAT on purchased materials". The point is that in ch. 21 of the Tax Code of the Russian Federation, this amount can be reduced by the taxpayer only if a large number of conditions are met. The same document says that the liabilities involved in the calculation of NA should not include the line “Reserves for future costs”. But according to the conclusion of most economists, this article refers more to own funds than to the obligations of the organization.

Example

Having dealt with the theory, we turn to practice. In the example, we will consider the calculation of the net assets of an LLC. This formula and procedure are used for enterprises of all forms of ownership.

Lines of the balance sheet of Prodzapasy LLC as of 10/01/2015, which are taken into account in the calculations:

Total NA as of 10/01/2015: 6750 - 3500 = 3250 thousand rubles.

The value of net assets, the calculation of which is carried out to analyze the financial activities of the organization and before the accrual of dividends, should ideally be positive and exceed the size of the authorized capital. The growth of the indicator indicates an increase in profits. But the reverse situation is also possible. Most often, in the first year of operation of the enterprise, the value of NA may be less than the UK. But with the normal operation of the organization in the future, the situation should improve.

Registry

Since 2013, information on the value of net assets has been provided to the Unified Federal Register (EFRSUL). It must include the following information:

• creation of a legal entity (even through reorganization);
• the decision of the federal body to exclude the organization from the Unified State Register of Legal Entities;
• calculation of net assets of the enterprise;
• liquidation, bankruptcy of a legal entity;
• change in the value of the UK;
• change of registration address.

Thus, information about the cost of NA is publicly available.

Change in the amount of the authorized capital

Although the legislation stipulates that if, according to the results of the second and subsequent periods, the value of NA is higher than the authorized capital, then these indicators must be equalized, while reducing the authorized capital is not necessary. You can increase the NA through the contributions of participants. But such a duty must necessarily be provided for in the charter. If it is missing, then you must first make changes to the document, and only then change the Criminal Code.

Increase in NA

Since 2011, when taxing profits, all property that was transferred to an organization in order to increase the NA and form additional capital is not taken into account.

Previously, this was not possible. Now you can increase the NA without consequences in NU. In accounting, the value of property received as a contribution is not income.

The contribution to the OS LLC is reflected in the DT account of the relevant intangible assets and CR account 83 "Additional capital". In other words, if the organization received raw materials or goods as a contribution, then this operation will be reflected in the following entry: DT 10 (41) KR 83. And if funds were received as a contribution, then: DT 51, KR 83.

MC reduction

If you cannot increase the NA, then you will have to reduce the UK. In this case, the following state requirements must be observed:

• notify the state registration body of the decision to reduce the Criminal Code within three working days;
• for the next two months, publish in the media information about the change in the amount of capital.

Be sure to include the following information in the text:

• full and abbreviated name of the organization, data on the location of the object;
• the size of the authorized capital and the amount by which it will be adjusted;
• conditions for reducing capital;
• description of the procedure for submitting applications by creditors with claims, additional addresses of the organization, ways of contacting management (fax numbers, telephone numbers, email and other data).

Data processing

The calculation of the organization's net assets shows only the absolute value. Further it needs to be analyzed in the following directions:

• dynamics of change: it is necessary to compare the value of NA at the beginning and end of the year, and then identify the reasons for the change;
• assessment of the reality of the adjustment: very often the change in the volume of this indicator at the end of the year turns out to be insignificant compared to the overall growth of assets;
• the ratio of NA and UK: this allows you to determine the proximity of the enterprise to bankruptcy (this situation may arise if net assets are less than or equal to the size of the organization's capital).
• efficiency of use: it is necessary to calculate and analyze the dynamics of changes in profitability and turnover of NA.

Let's consider some of these indicators in practice. First you need to calculate net assets. Example:

The value of net assets, the calculation of which is presented in the table above, for the period decreased by 21,524 thousand rubles, or by 27.8%.

According to the results of calculations, the following conclusions can be drawn: the cost of NA exceeds both the size of the company's capital and the one established by law. The activity of the organization is recognized as successful. The management may decide on the distribution of CP among the participants.

Calculation of the bank's net assets

It is more expedient to assess the value of the banking business using an integrated approach, which will take into account the amount of current NA and their growth in the future due to the existing economic potential at the moment. At the same time, it is important to pay special attention to the assessment of fixed assets, since they are formed at the expense of equity.

Calculation of the value of net assets is based on the market value of the property. But this approach is not always justified. Buildings and technical equipment for data analysis (computers and software) play the main role in the structure of the bank's OS. PCs and software age morally much faster than physically, that is, when evaluating them, you need to focus primarily on their book value. Buildings are best valued at market value. It is not affected by the operating conditions, only the economic growth of the region.

Summary

The calculation of the value of net assets must be carried out not only to display the figure in the reporting documents, but also for the purpose of internal control. Monitoring this indicator allows you to make timely management decisions to change the value of the UK or NA. If the situation is allowed to take its course, then the management will, at best, face the problem of a decrease in capital, and at worst, they will have to liquidate the organization.