Analysis of the company’s assets accounting organization

Jun, 01 2020

Analysis of the company’s assets accounting organization is a complex procedure designed to assess the state of the company. The balance sheet provides information on the placement and use of enterprise funds. At the same time, one of the key criteria evaluating financial condition is the speed of asset turnover. High-quality asset accounting allows to determine the financial position of organization adequately and quickly.

The concept and types of assets in accounting

Assets are property and finance of an enterprise. An example is real estate, goods, raw materials, demands to counter parties. However, apart from material values, company also needs licenses, programs and technologies. Therefore, assets can be tangible and intangible.

Tangible asset accounting

From accounting point of view material assets are own resources, which have a material-property form, expressed in figures of value. They can be intended for sale, and it is important that the company reuses them in its work.

Tangible assets are divided into two groups – depending on how they are applied in the work of enterprise:

1) Current assets are used for operating activities of the company and are spent on a full production cycle not exceeding one year. They include raw materials, finished goods, money, semi-finished goods.

2) Non-current assets are constantly used in paperwork until the resource is transferred to the product. This category includes fixed assets, equipment and machinery, real estate and long-term investments, working vehicles.

The company shall reflect all types of tangible assets in financial statements. It is important to adhere to a given date and to disclose encodings. More detailed procedure is described in Accounting Regulations which require the reflection of business transactions on working accounts. The procedure for generating entries or rules for evaluating resources is stated in the Order of the Ministry of Finance.

Intangible assets accounting 

The concept of intangible assets is set forth in art. 257 of the Tax Code. They are intellectual property objects that company uses to obtain economic benefits in terms exceeding one calendar year. It can be inventions, programs, trademarks, licenses or business reputation.

Intangible assets take into account the level of effectiveness of their use in the production process. Thus, when analyzing the company’s assets accounting organization, the expected benefit from the object and its work period shall be determined. The unit of accounting is each particular object.

VALEN lawyers will conduct a comprehensive analysis of the company’s assets accounting organization, check the documentation for validity and accuracy of filling, as well as for compliance with current tax legislation. We cooperate with large and small businesses, local and foreign companies operating in the Russian Federation.

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