The structure of any enterprise presupposes the presence of assets, property with a certain value. The combined value of all assets constitutes the company's book value. This indicator is reflected in accounting documents. It is constantly changing, depending on the activities of the enterprise.

Book value and its features

Book value is, in simple terms, the company's capital. This is the result of the valuation of all its assets, minus its various liabilities and debts. The capital under consideration may include:

financial resources;
equipment;
various long-term assets;
authorized capital.

All sources of book value are indicated in a special statement. They cannot be reflected in the company if they do not appear in any way in its documentation. Calculating book value is a complex procedure involving a number of steps.

NOTE! Equipment is assessed taking into account its wear and tear. The more wear and tear, the less the value of the object will be. The balance sheet records net assets.

Calculation of book value

BS is one of the indicators of the solvency and solvency of an enterprise. This is not the only criterion, but it is an important one. The indicator becomes especially relevant under the following circumstances:

the need for lending with collateral in the form of enterprise property;
sale of assets in a difficult financial situation (for example, bankruptcy, settlements with creditors);
allocation of shares or division of the enterprise between the founders;
identification of large assets.

Book value may be important when interacting with banks and partners.

Calculation features

Book value reflects actual capital data. When calculating it, it would be incorrect to take the market value of the equipment. It is calculated taking into account the price at purchase and the level of wear. The optimal way is to conduct a comprehensive assessment of all equipment available at the enterprise. Based on the results, the book value is formed.

An independent appraiser is entrusted with carrying out the assessment. Its work can be done using one of the following methods:

Comparative analysis of the cost of a similar object on the market. For example, the assets of an enterprise include equipment. The appraiser finds out its technical characteristics and operating time, and looks for a similar object for sale. The price of the latter determines the cost of the equipment of interest.
The probable income from renting out the property is determined. When calculating, a certain time period is taken.
A specialist determines the costs of equipment restoration. Then a special formula is taken that includes the wear coefficient. The book value takes into account the average values obtained by applying the formula.

The choice of a specific method depends on the type of asset.

NOTE! An asset can be recognized as a major asset only after its carrying amount has been calculated. Its price is 20% of the considered indicator.

How is the book value of assets determined?

Let's consider the procedure for determining the indicator we are interested in step by step:

A new object is purchased, which is recorded in the balance sheet. The documentation shows the actual purchase price.
In the process of using an object, its wear and tear is inevitable. Therefore, depreciation is charged every month, quarter or year. It is calculated based on the cost of the object upon purchase.
The depreciation amount is indicated in money. It refers to the company's income. The contributions in question are subject to income tax.

Depreciation charges are subtracted from the book value to ensure it remains fair.

The considered procedure is relevant when acquiring new material assets. If the object is purchased on the secondary market, the calculation methodology will be different. The cost of used equipment will be lower than market prices. It cannot serve as a starting point for calculations. Therefore, the object must be assessed by an independent specialist. The assessment is carried out taking into account many factors:

relevance of the object on the market;
wear indicators;
technical specifications;
demand for this equipment.

The value quoted to the appraisers can be reflected in the balance sheet.

IMPORTANT! The balance sheet does not only record assets that decrease over time. It also includes objects whose prices are rising. For example, this is real estate, land. Such assets are not subject to wear and tear. Over time, they only increase the capital of the enterprise.

Why does book value differ from market value?

The BS almost always differs from the market one. The first indicator will be less than the last. This is due to the fact that not all assets of an enterprise can be reflected on the balance sheet. The documents take into account only material objects with a specific value. But they are not the only ones that make up the structure of the company. Market value can increase due to the following indicators:

company reputation.
wide range of clients.
solid scientific base.

Market value sometimes decreases. For example, a company is sued for a large amount. This will not appear in any way in the accounting documents, but it has very serious financial implications. Litigation reduces the attractiveness of a company to potential buyers, resulting in a decrease in market value.

A prime example of the mismatch between market and book value is startups. A young company has virtually no assets, but millions can be invested in it. BS, in this case, will not reflect anything. The market value is determined based on the prospects of the startup, the idea being implemented, and the “brains” involved in the work. All this cannot be recorded in documents.

IMPORTANT! When making financial decisions, it makes sense to focus on market value. It is more objective and includes a larger number of important indicators.

Is it possible to change the book value without permission?

The actual BS must be recorded in the documents. Both reducing it and increasing it can lead to equally disastrous results. In the first, there is a possibility of problems arising when allocating shares. The assets of the business will be valued based on what is in the document. If disputes arise, the founder will receive a small share that does not correspond to the actual capital.

IMPORTANT! The real book value is a “safety cushion” in the event of a difficult financial situation with the threat of bankruptcy. It will allow you to pay off creditors.

Book value is the capital of the enterprise. It is constantly changing, so it needs to be recalculated on a regular basis. It is considered one of the indicators of company stability.

Tell me, the book value of the company’s assets = total for section 1 of the balance sheet (line 1100) + total for section 2 of the balance sheet (line 1200). It turns out that it will be equal to line 1600 of the balance sheet?

The book value of assets is understood as the entire amount of current and non-current assets of the enterprise. In the balance sheet form, this value is reflected in line 1600.

The rationale for this position is given below in the materials of the Glavbukh System

The book value of assets is equal to the amount of assets (current and non-current) according to the last approved balance sheet without reducing it by the amount of debts. Thus, it is the book value of assets that needs to be taken into account, and not the value of net assets (clause 3 of the information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated March 13, 2001 No. 62 “Review of the practice of resolving disputes related to the conclusion of large transactions by business companies in which there is an interest"). This is also indicated by the FCSM in its information letter dated October 16, 2001 No. IK-07/7003 “On the book value of assets of a business company.”

This position is confirmed by judicial practice (resolution of the Federal Antimonopoly Service of the Far Eastern District dated July 19, 2010 in case No. A51-1888/2007, left unchanged by resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated March 1, 2011 No. 14871/10).

At the same time, there is another opinion, according to which the book value of assets should be determined according to the financial statements compiled on the last day of the month preceding the month of the transaction.

This opinion is based on paragraphs of the Regulations on Accounting and Financial Reporting in the Russian Federation, approved by Order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n. According to the above paragraphs, the reporting period is considered to be a month, and the reporting date is the last calendar day of such a month.

Thus, there is no uniformity in judicial practice, and the court will most likely determine the reporting date taking into account the specific circumstances of the case.

2. Procedure for filling out the Balance Sheet

Name of balance sheet items		Accounting accounts (in particular)
I. Non-current assets
Intangible assets		– 04 “Intangible assets” (excluding R&D expenses) – 05 “Amortization of intangible assets” (excluding R&D expenses); – account balance 97 “Deferred expenses” (in terms of a one-time (lump-sum) payment for the right to use the results of intellectual activity and means of individualization, provided that the period for writing off these expenses exceeds 12 months after the reporting date or the duration of the operating cycle, if it exceeds 12 months)
Research and development results		Difference between account balances: – 04 “Intangible assets” (in terms of R&D expenses with registered exclusive rights and (or) subject to legal protection) – 05 “Amortization of intangible assets” (in terms of R&D expenses with registered exclusive rights and (or) subject to legal protection)
Intangible Search Assets		Account balance 08 (in terms of expenses for the development of mineral resources). These expenses may later be classified as intangible assets
Material prospecting assets		Account balance 08 (in terms of expenses for the development of mineral resources). These expenses can later be classified as fixed assets
Fixed assets		Difference between account balances: – 01 “Fixed assets” – 02 “Depreciation of fixed assets” (excluding depreciation accrued on objects of profitable investments in material assets reflected on line 1140) – balance on account 07 “Equipment for installation” (in terms of expenses for construction in progress) – balance on account 08 “Investments in non-current assets” (in terms of expenses for construction in progress) – the balance of account 97 “Deferred expenses” (in terms of regular large expenses that arise at certain long time intervals (more than 12 months) during the life of the fixed asset item, for its repair and for other similar activities (for example, checking the technical state))
Profitable investments in material assets		Difference between account balances: – 03 “Profitable investments in material assets” – 02 “Depreciation of fixed assets” (in terms of depreciation accrued on these objects)
Financial investments		Account balance: – 58 “Financial investments” in terms of long-term investments (minus the balance of account 59 “Provisions for impairment of financial investments”, relating to long-term financial investments) – 55 “Special accounts in banks”, subaccount 3 “Deposit accounts” (in terms of long-term investments and deposits for a period of more than a year, if interest accrues on them) – 73 “Settlements with personnel for other operations” (regarding interest-bearing loans with a repayment period after 12 months after the reporting date)
Deferred tax assets		Balance on account 09 “Deferred tax assets”
Other non-current assets		Account balance: – 07 “Equipment for installation” (excluding costs for construction in progress) – 08 “Investments in non-current assets” (excluding expenses for construction in progress) – other non-current assets that are not reflected in other groups of items in the section “Non-current assets”
Total for Section I		Line sum: 1110, 1120, 1130, 1140, 1150, 1160, 1170, 1180, 1190
II. Current assets
		Account balance: – 10 “Materials” – 11 “Animals in cultivation and fattening” – 20 “Main production” – 21 “Semi-finished products of own production” – 23 “Auxiliary production” – 29 “Service industries and farms” – 41 “Goods” (minus the credit balance on account 42 “Trade margin”, if goods are included in sales prices) – 43 “Finished products” – 44 “Sales expenses” – 45 “Goods shipped” – 46 “Completed stages of unfinished work” – 97 “Deferred expenses” (except for expenses reflected on lines 1110 and 1150 of the balance sheet) – 15 “Procurement and acquisition of material assets” – plus (minus) debit (credit) balance on account 16 “Deviation in the cost of material assets” – minus the credit balance on account 14 “Reserves for reduction in the value of material assets”
Value added tax on purchased assets		Balance on account 19 “Value added tax on acquired assets”
Accounts receivable		Account debit balance: – 60 “Settlements with suppliers and contractors” (suppliers’ receivables for advances paid by the organization are reflected minus VAT) – 62 “Settlements with buyers and customers” – 71 “Settlements with accountable persons” – 73 “Settlements with personnel for other operations” (except for interest-bearing loans) – 75 “Settlements with founders” – 76 “Settlements with various debtors and creditors” (VAT amounts accrued on advances are not taken into account) – 68 “Calculations for taxes and fees” – 69 “Calculations for social insurance and security” – minus the balance on account 63 “Provisions for doubtful debts”
Financial investments (excluding cash equivalents)		Account balance: – 58 “Financial investments” in terms of short-term investments (minus the balance of account 59 “Provisions for impairment of financial investments”, relating to short-term financial investments) – 73 “Settlements with personnel for other operations” (regarding interest-bearing loans with a repayment period of less than 12 months after the reporting date)
Cash and cash equivalents		Account balance: – 50 “Cash” (excluding the balance on the “Cash Documents” subaccount) – 51 “Current accounts” – 52 “Currency accounts” – 55 “Special accounts in banks” (except for amounts included in financial investments) – 57 “Translations on the way”
Other current assets		Account debit balance: – 50 “Cash” (regarding the balance of the “Cash Documents” subaccount) – 79 “Intra-business settlements” (regarding settlements under a property trust management agreement) – 94 “Shortages and losses from damage to valuables” – other current assets that are not reflected in other groups of articles in the “Current Assets” section
Total for Section II		Row sum: 1210, 1220, 1230, 1240, 1250, 1260
Balance		Row sum: 1100 and 1200

Production assets are the main assets of the enterprise, which play a major role in determining the profit of the production cycle. Their book value is calculated by the formula: initial cost minus depreciation charges.

Balance sheet asset sections

The final result of economic and commercial activities is the “Balance Sheet” report, where separate sections highlight the book value of assets, which is divided into the following indicators:

Non-current assets with a service life of more than 12 months:

Intangible assets (IMA);
The result of research work;
Fixed assets;
Property rented out and making a profit from it;
Long-term investments;
Part of the income tax asset deferred until the next reporting period;
Other objects that have characteristics of non-current assets.

Current assets serve the production process for 12 months. This group includes:

Materials for production;
Accounts receivable;
Cash on hand at the enterprise;
VAT on purchased goods, which are indirectly, but also the property of the enterprise;
Short-term cash investments.

Structure of fixed assets

Fixed assets in the balance sheet are reflected in the group of non-current assets. They are used in production activities and evenly distribute the entire amount of the cost of fixed assets to accrue the calculation of manufactured finished products or services provided.

Fixed assets consist of:

Real estate (buildings, structures);
Owned land plots;
Transport (cars);
Equipment and inventory for the production process;
Motor transport and mobile mechanisms;
Computer technology;
Measuring instruments;
Pets;
Green spaces grown over a long period of time;
Roads owned by the company;
Expensive expenses for land enrichment;
Capital investments in leased real estate fixed assets.

Depreciation charges gradually reduce the original cost of objects. The service life of the OS has been calculated using the new OKOF classifier since 2017.

It is important to take into account that regardless of the results of the company’s financial and economic activities (profitable or unprofitable), the amount of costs for depreciation of fixed assets remains the same.

Features characteristic of fixed assets

An object becomes a fixed asset when the following conditions are met:

If the operating systems are intended for the production process of manufactured products or the performance of certain types of work or services. For management staff or rental for an additional fee;
If the facility will be used for a long time, more than one year;
The funds are not intended for resale;
With the help of fixed assets, the company plans to make a profit in the future;
The cost of the purchased object must be more than 40,000 rubles. (according to tax accounting over 100,000 rubles).

Fixed assets, the function of which is to operate in the production process of the company, are classified as production assets. These include: equipment, instruments, inventory and more.

Fixed assets not intended for production needs are classified as non-productive assets: real estate, buildings, structures, etc.

You should know that for the preparation of accounting reports, it does not matter which assets (productive or non-productive) the main objects belong to. Their total book value is calculated as one sum.

Final cost of main objects

When choosing a method for calculating depreciation, the residual value of the fixed assets is determined:

Depreciation calculation using the linear method;
Accrual of depreciation on the reducing balance;
Calculation based on the total number of years of operation of the facility;
Proportional to the output volume.

Depreciation is calculated in the next month after the object is reflected in accounting on account 01; upon disposal of a fixed asset or upon completion of full depreciation of fixed assets, depreciation is not accrued. When the OS is preserved for more than 3 months or restoration work is carried out for more than 12 months, depreciation is not calculated.

In other cases, depreciation of objects is calculated monthly.

It is important to know that enterprises with simplified accounting have the right to choose the frequency of calculating depreciation of objects, up to once a year, on December 31.

Accounting for calculating the residual value of objects

To determine the total cost of objects at the beginning of a new reporting period, the accountant creates the following entries in the accounting register:

Dt01 Kt08 – objects put into operation (initial cost).

At the end of the next month, after the objects are put into operation, we accrue depreciation of fixed assets according to the following transactions:

Dt20,23,25,26,44 Kt02 - we determine the amount of depreciation charges in the company's expense item.

Thus, the residual value of the objects is formed from two balances of the turnover balance sheet according to account 01 and account 02.

Balance sheet indicators of fixed assets

After the end of the reporting period, the resulting total fixed assets (balances) are posted to the financial statements. In the balance sheet of the enterprise, fixed assets are reflected on line 1150, the total amount of fixed assets (residual value) is derived by subtracting accrued depreciation from the original cost.

If fixed assets undergo a revaluation process, then the final (residual) value of the fixed assets is characterized as the replacement cost minus depreciation charges.

In the final register of the balance sheet of accounting, the residual value of fixed assets is determined as follows: balance for Dt01 minus balance for Kt02.

Let's look at an example:

TURNOVER BALANCE SHEET

Organization: Masterclass LLC

Period: 1st quarter 2017

From the example, we derive the residual value of the main objects:

58600 – 1800=56,800 rubles, this is the amount of fixed assets, which is reflected in the financial statements for the 1st quarter of 2017 on line 1150.

Balance Sheet

Location (address) Volgograd, Mira street, no. 12

The main indicator of the effective performance and economic condition of an organization is the book value of the enterprise's assets.

The book value indicator is applicable for some calculations:

Profitability indicates the amount of profit due to investments in equipment;
Working capital turnover is a determination of the efficient use of assets.

The reflection of fixed assets on the balance sheet indicates the commercial viability and reliability of the company.

Assets are resources that support the production process, expressed in terms of value. Book value of funds refers to the total value of assets owned by a firm. From this article you will learn where to look at the book value of assets on the balance sheet, as well as how it is determined.

The book value of funds can be determined by economic authorities for a variety of purposes.

Mainly, the calculation of book value is required when conducting an economic analysis of the company's activities. An indicator such as asset value may be needed to determine:

The company must calculate these indicators to analyze its activities, and the indicator of the book value of assets in some cases must be calculated by law without fail.

Where to look at the bay. balance sheet book value

The value of assets on the balance sheet is the sum of all the company's assets in monetary terms, reflected in the accounting book. balance. The balance sheet asset consists of two parts:

Non-current assets – line 1100;
Current assets – line 1200.

The total value of assets on the balance sheet is line 1600.

Non-current assets include fixed assets and intangible assets. They are accounted for on the balance sheet at their residual value, that is, at the purchase price minus the amount of accumulated depreciation.

Current assets are funds that are completely consumed in one year or one production cycle. These include: debts of debtors, money, materials, short-term investments and VAT.

Calculation of book price

Balance sheet total assets is an indicator that reflects the total value of all company assets on the balance sheet. The procedure for calculating the book value is established at the legislative level, in documents that regulate the accounting procedure.

Fixed assets must be reflected in the balance sheet at their residual price. To calculate it, you must use the following formula:

Composition = D01 – K02.

D01 – debit balance of account No. 01;
K02 – credit balance of account No. 02.

Intangible assets are also taken into account in the balance sheet at their residual price.

The balance sheet amount of accounts receivable will be reflected in the balance sheet minus the formed reserves for doubtful debts, and inventories - minus the formed reserve for reducing the price of mat. values.

The book value is determined by the formula:

S. 1600 = s. 1100 + s. 1200.

How to determine the average price of assets

Accounting amount of assets The balance sheet is only an absolute indicator that determines the total value of the company's property assets.

An indicator such as the average value of assets gives the most accurate idea of the size of assets, smoothing out possible inaccuracies that arose in one of the reporting periods. This indicator is calculated using the formula:

Asg = (Eng + Akg) / 2.

Ang – book price of funds at the beginning of the reporting period;
Akg is the book price of funds at the end of the reporting period.

Return back to

The book value of assets is the sum of all assets of the enterprise in monetary terms, reflected in the balance sheet (BB).

The company's assets include:

Non-current assets - line 1100 BB;
current assets - line 1200 BB.

The book value of assets is the sum of non-current and current assets reflected in line 1600 BB.

Fixed assets and intangible assets are classified as non-current and are indicated in the BB at their residual value, that is, at the purchase price minus accumulated depreciation and taking into account revaluation, if it was carried out at the enterprise.

Working capital is the assets that participate in the activities of the enterprise and are consumed within 1 year or 1 full cycle.

Current assets include such assets as:

Materials/stocks;
accounts receivable;
cash;
VAT on acquired values, which indirectly, but also, is the property of the enterprise;
short-term financial investments.

Based on its goals, an enterprise can calculate the book value of assets as the value of all property of the enterprise or its constituent elements (fixed assets, intangible assets, etc.). How to calculate the book value of an enterprise's assets will be discussed below.

So, as already noted, the book value of assets is reflected on line 1600 BB and represents the sum of the non-current and current assets of the enterprise. That is, the book value of assets is the value of all property of the enterprise according to the balance sheet as of the last reporting date.

It is calculated like this:

Line 1100 BB + Line 1200 BB.
Pay attention! Book value of assets and book value of net assets are different concepts. Book value of assets is the total of all the assets of a business, while net assets are the assets minus the liabilities of a business.

An enterprise can, upon request, provide information about the state of its assets to credit and insurance organizations and some counterparties when making transactions. To do this, the company draws up a certificate of the book value of assets, which includes the calculation given above.

Why is the book value of assets calculated?

First of all, for the purpose of financial analysis, which is the most important tool for assessing the financial condition of an enterprise.

In particular, the book value of assets is used when calculating:

Return on assets, which shows how much profit the company receives from each ruble invested in property;
asset turnover ratio, which determines the efficiency of their use.

If an enterprise calculates the profitability and asset turnover ratios for self-analysis, then the indicator of the book value of assets in some cases must be calculated by law.

The book value of assets is the most important indicator that determines the size of the transaction performed by the enterprise.

Thus, some transactions of an organization for the sale of assets are recognized as large ones in accordance with paragraph 1 of Art. 46 Federal Law No. 14-FZ (for LLC) and clause 1 of Art. 78 Federal Law No. 208-FZ (for joint-stock companies). To determine the size of the transaction, it is necessary to calculate the book value of assets and the value of the property being sold. If the cost of the property being sold is more than 25% of the book value of the organization’s assets, the transaction is considered a major transaction. In this case, a decision of the meeting of shareholders or founders is required to carry out the transaction. If the book value of assets is determined incorrectly or not calculated at all, the transaction may be considered invalid.

The book value of assets is the value of the enterprise's property according to accounting data. Information about it is contained in line 1600 of the balance sheet. The book value of assets is an important indicator used to analyze the performance of an enterprise.