Evaluation of Tangible Fixed Assets

2020 ◽  
Vol 26 (2) ◽  
pp. 31-36
Author(s):  
Sebastian Floștoiu ◽  
Marius Milandru
Keyword(s):  
Cash Flows ◽  
Economic Benefits ◽  
Economic Agent ◽  
Investment Activity ◽  
Tangible Assets ◽  
Fixed Assets ◽  
Heart Center ◽  
Accounting Valuation

AbstractThe notion of tangible fixed assets can be interpreted as the heart, center or engine of an enterprise because it is expected to give rise to future economic benefits, namely, to contribute, both directly and indirectly, to the realization of the cash flows of investment activity. The importance of these fixed assets is clear from the fact that no company will be able to carry on its activity if it does not have tangible fixed assets in its assets, regardless of how they are purchased, for example: by acquisition, by building in its own right or by donation. The purpose of this article is to present the accounting treatment for the recognition, accounting, valuation and reassessment of these assets within an enterprise. The reason for choosing this issue was to highlight the importance that these tangible assets have at the level of each economic company. Certainly, these assets cannot be deprived of the assets of any economic agent because, in my opinion, they are the main pillar in any business.

scholarly journals A New Look at the Classification of Non-current Tangible Assets During a Crisis

2021 ◽  
Vol 25 (1) ◽  
pp. 46-51
Author(s):  
Alla Hnatiuk ◽  
Keyword(s):  
Management System ◽  
Economic Benefits ◽  
Enterprise Management ◽  
Economic Entity ◽  
Tangible Assets ◽  
Fixed Assets ◽  
Enterprise Management System ◽  
And Control

Annotation. Introduction. Creation of an efficient property management system is one of the main problems for the enterprise management system. The effectiveness of such a system is directly determined by the quality of information used for management. Among the tasks, which an economic entity faces, a special place is occupied by the classification of objects of accounting. Financial and tax indicators depend on its solution at a particular enterprise. In order to properly organize the economic activity of an enterprise, it is needed to know what funds it has and in what these funds are invested (placed). Therefore, the division of enterprise resources into separate groups is necessary to understand and summarize the accounting information used for financial statements. Purpose. To ensure the usefulness of information on the availability of non-current tangible assets, which is provided to users in the way of classification, the article defines the qualitative characteristics of the classification of non-current tangible assets (relevance, objectivity, reliability, content, comparison) and studies their essence. Results. The research suggests a critical assessment of existing approaches to the criteria for grouping non-current tangible assets in order to define differences between them. This has made it possible to clarify the content of the criteria for recognizing non-current tangible assets as assets of the enterprise (criteria of economic benefit, value reliability, and control). This clarification deepens the understanding of the nature of non-current tangible assets as objects of accounting. Conclusions. The research has investigated the classification of non-current tangible assets from the normative-legal and scientific points of view. It has summarized the criteria applied in accordance with domestic and foreign legislation for the classification of non-current tangible assets. The research has substantiated the importance of improving the existing classification of such assets for accounting purposes. The research has also improved classification of non-current tangible assets according to the following criteria: the ability to bring economic benefits (long-term, immature) and the method of use in the production process (consumed, fruitful), which will significantly improve the structuring of enterprise assets. Keywords: classification; resources; criteria; non-current tangible assets; fixed assets; long-term biological assets.

METHODICAL BASES OF ASSESSMENT OF ECONOMIC EFFICIENCY OF INVESTMENT IN ENTERPRISE DEVELOPMENT

2018 ◽  
Author(s):  
Olexandr Yemelyanov ◽  
◽  
Tetyana Petrushka ◽  
Lilia Lesyk ◽  
Anastasiya Symak ◽  
...  
Keyword(s):  
Cash Flow ◽  
Economic Efficiency ◽  
Cash Flows ◽  
Time Interval ◽  
Enterprise Development ◽  
Investment Activity ◽  
Investment Projects ◽  
Retrospective Assessment ◽  
Tangible Assets ◽  
The Moment

Ensuring economic development of enterprises requires from them the investment of financial resources. Herewith there are many directions of such investment, methods and sources of financing of investment projects, in particular, the purchase of fixed assets and other assets. When adopting investment decisions on the acquisition of assets, the enterprise should compare the expected cash flows from the exploitation of these assets with the amount of investments in their purchase. Under such conditions, it appears a need for a retrospective assessment of the economic efficiency of investments in the acquisition of assets by enterprises in previous periods. The purpose of this article is to develop methodical bases for assessing the economic efficiency of investment in enterprise development. The method of assessing such efficiency for the totality of the available assets at the enterprise is developed, taking into account the terms of their acquisition and the value of net cash flow from their exploitation from the moment of their acquisition until the moment of assessment. It is proposed to evaluate the indicator of the period of achievement of the minimum required efficiency of investments in the development of the enterprise. This period represents the time interval between the moment of investing in the acquisition of assets of the enterprise and the moment when the received cash flow will provide the minimum acceptable level of economic efficiency of invested money. The article shows that the achievement of the minimum acceptable efficiency of investment in the development of the enterprise is a criterion for the success of its investment activity. The factors influencing the period of achievement of minimum acceptable efficiency of investment in the development of the enterprise are determined. Directions for reduction of this period are determined. In particular, they include the optimization of volumes of current assets of the enterprise. A model for determining the value of financial results of the enterprise, which will provide the minimum acceptable efficiency of funds that were invested in tangible assets of the enterprise in previous periods, is proposed. Implementation of the developed methodical principles for assessing the economic efficiency of investing in the development of enterprises in their practice will improve the monitoring of investments realized by enterprises and the process of regulating their investment activity.

scholarly journals Retrospective analysis of foreign investment in the context of the evolution of economic theories

2021 ◽  
pp. 23-34
Author(s):  
Maryana Orshanska
Keyword(s):  
Foreign Direct Investment ◽  
Retrospective Analysis ◽  
Open Economy ◽  
Direct Investment ◽  
Monopolistic Competition ◽  
Economic Benefits ◽  
International Capital ◽  
Investment Activity ◽  
Systematic Analysis ◽  
Economic Theories

The article provides a retrospective analysis of the formation and evolution of foreign direct investment in terms of various economic theories taking into account changes in the stages of socio-economic development. The study of these historical and economic issues was carried out using systematic analysis and historical method; which allowed us to identify the genesis and analyze the evolution of economic theories on the formation and development of foreign direct investment. The author conducted a detailed study of the history of investment activities and management of foreign direct investment from the oldest origins in the ancient world to modern forms of innovation. It was found that at different times, repre- sentatives of various economic theories (open economy, market modernization, monopolistic competition, international capital movements, etc.) worked on under- standing complex investment processes, risk management and methods of obtaining economic benefits, who considered foreign direct investment as a guaranteed im- provement and development of society. The analysis of scientific literature and statistics shows positive social, po- litical, economic, technological and other effects of investment activities: job creation and training, export diversification and improvement of export perfor- mance, introduction of science-intensive technologies, activation of local firms – suppliers and subcontractors, the introduction of effective management methods, foreign exchange inflows, etc. Analyzing the genesis of economic theories, opinions and research, we conclude that humanity, feeling the need for savings, pays considerable attention to investment. The stages of the investment economy and the choice of methods of control over them indicate the urgency of this problem, and today scientists continue to discover new aspects of investment opportunities and develop innovative forms, mechanisms, tools of investment policy. Key words: economic theories, foreign direct investment, investment activity, international capital movement.

scholarly journals Stochastic Fuzzy Algorithms for Impairment of Assets Management

2020 ◽  
Vol 15 (1) ◽  
Author(s):  
Marcel Ioan Bolos ◽  
Victoria Bogdan ◽  
Ioana Alexandra Bradea ◽  
Claudia Diana Sabau Popa ◽  
Dorina Nicoleta Popa
Keyword(s):  
Artificial Intelligence ◽  
Decision Making ◽  
Fuzzy Numbers ◽  
Cash Flows ◽  
The Other ◽  
Dual Purpose ◽  
Fuzzy Algorithms ◽  
Tangible Assets ◽  
The Impact

The present paper aims to analyze the impairment of tangible assets with the help of artificial intelligence. Stochastic fuzzy numbers have been introduced with a dual purpose: on one hand to estimate the cash flows generated by tangible assets exploitation and, on the other hand, to ensure the value ranges stratifications that define these cash flows. Estimation of cash flows using stochastic fuzzy numbers was based on cash flows generated by tangible assets in previous periods of operation. Also, based on the Lagrange multipliers, were introduced: the objective function of minimizing the standard deviations from the recorded value of the cash flows generated by the tangible assets, as well as the constraints caused by the impairment of tangible assets identification according to which the cash flows values must be equal to the annual value of the invested capital. Within the determination of the impairment value and stratification of the value ranges determined by the cash flows using stochastic fuzzy numbers, the impairment of assets risk was identified. Information provided by impairment of assets but also the impairment risks, is the basis of the decision-making measures taken to mitigate the impact of accumulated impairment losses on company’s financial performance.

scholarly journals USE OF INVESTMENT INSTRUMENTS FOR DEVELOPMENT OF WATER SUPPLY AND WASTEWATER SPHERE IN UKRAINE

World Science ◽  
2019 ◽  
Vol 2 (6(46)) ◽  
pp. 30-38
Author(s):  
Oleksandr Ignatenko ◽  
Iryna Krylova
Keyword(s):  
Water Supply ◽  
Statistical Data ◽  
Local Communities ◽  
The State ◽  
Financial Resources ◽  
Quality Of Services ◽  
General Context ◽  
Investment Activity ◽  
Fixed Assets

The article is devoted to the clarification of the peculiarities of the use of investment instruments for the development of the water supply and wastewater sector in Ukraine. The sphere of water supply and wastewater of Ukraine requires significant investments for the renewal of fixed assets of water supply and wastewater enterprises, reconstruction and development of engineering infrastructure, introduction of the latest technologies, improvement of the quality of services, etc. The authors consider the concept of investment, investment activity, investment program in the general context and in the field of water supply and wastewater. The structure of planned volumes of financing of measures of investment programs of water supply and wastewater enterprises in 2018 is being analyzed. Issues of application of other modern financial and economic mechanisms in the field of water supply and wastewater are considered. The article analyzes the state of realization of public-private partnership in the field of water supply and wastewater on the basis of statistical data. Investment approaches based on participative financing, which involves the use of financial resources not only of the state but also of local communities, business and civil society institutions, and financing through the use of opportunities of the market of debt obligations, including at the expense of the issue of municipal securities in the form of bonds of a local loan.

Accounting for non-financial tangible assets: Convergence with IFRS, achievements, challenges, prospects

2021 ◽  
Vol 22 ◽  
pp. 142-165
Author(s):  
Tat'yana Yu. DRUZHILOVSKAYA
Keyword(s):  
Critical Analysis ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Non Profit ◽  
The Public ◽  
Tangible Assets ◽  
Fixed Assets ◽  
Solution Methods ◽  
Commercial Organizations ◽  
The Impact

Subject. This article discusses the problems of accounting for non-financial tangible assets associated with the introduction of new FSBU (Russian Federal Accounting Standards) for commercial organizations and non-profit organizations outside the public sector. Objectives. The article aims to study and systematize the impact of the new FSBU regulations on the accounting for non-financial tangible assets, justify the convergence of this accounting with IFRS regulations, identify problems, and justify the prospects for their solution. Methods. For the study, I used the methods of critical analysis, synthesis, comparison, observation, and the analogy approach. Results. The article describes the impact of the adoption of the new FSBU on the accounting for non-financial tangible assets, such as inventories, fixed assets, investment real estate, biological assets. It identifies the degree to which this accounting is linked to IFRS regulations, as well as the problems associated with the recognition, evaluation and reflection in the reporting of non-financial tangible assets in the reporting of Russian organizations as a result of the introduction of the new FSBU. The article shows the prospects for solving the problematic aspects of accounting for non-financial tangible assets of Russian organizations. Conclusions and Relevance. The introduction of the new FSBU will help significantly bring the accounting for non-financial tangible assets to IFRS requirements. The introduction of the new FSBU does not eliminate all differences from IFRS requirements in accounting for and reporting of non-financial tangible assets of Russian organizations. Solving the problematic aspects of the introduction of regulations of the new FSBU will contribute to the prospects for further reform of the Russian accounting. The results obtained have both applied and theoretical applications in the field of financial accounting.

PENERAPAN PSAP NOMOR 07 TENTANG AKUNTANSI ASET TETAP PADA KANTOR KEPOLISIAN RESOR KOTA LUBUKLINGGAU

2021 ◽  
Vol 4 (3) ◽  
pp. 961
Author(s):  
Norman Hadi ◽  
Sriyani Sriyani
Keyword(s):  
Financial Reporting ◽  
Financial Management ◽  
Balance Sheet ◽  
Economic Benefits ◽  
Point Of View ◽  
Police Station ◽  
Straight Line ◽  
Fixed Assets ◽  
The Government

The reform of state financial management in 2003 was aimed at realizing transparent and accountable government financial reporting. Reform of state financial management is the first step in improving the quality of state finances. In the government environment, fixed assets play an important role in government operations and also benefit the community. The problem studied is how the suitability of accounting for fixed assets at the Lubuklinggau Police with PSAP number 07 concerning Accounting for Fixed Assets from the point of view of recognition, measurement, presentation, and disclosure of Fixed Assets in Financial Statements. The research method used is a qualitative method, the method of data collection is carried out by means of observation and interviews with parties related to accounting at the Lubuklinggau Police Station. The results of this study are the Lubuklinggau Police Station has implemented Fixed Asset Accounting in accordance with PSAP 07, namely Assets are recognized when future economic benefits have been obtained and their value can be measured reliably, Fixed Assets are measured at cost, depreciation is carried out using a straight line and presented in Balance sheet according to PSAP 07.

STATISTICAL OVERVIEW OF CAPITAL INVESTMENTS TRENDS OF STATE STIVIDOR COMPANIES OF UKRAINE

2018 ◽  
Author(s):  
Liudmyla Chyzh ◽  
◽  
Svitlana Oneshko ◽  
Ihor Moroz ◽  
◽  
...  
Keyword(s):  
The State ◽  
Foreign Bank ◽  
Bank Loans ◽  
Alternative Methods ◽  
General Tendency ◽  
Capital Investments ◽  
Investment Activity ◽  
Fixed Assets ◽  
State And Local ◽  
Capital Construction

The research analyzes capital investments of state-owned stevedoring companies using statistical methods of relative and average values and indices. It has been established that the current trends in the port industry of Ukraine indicate insufficient capital investments, inconsistency of actual indicators with planned ones, and the lack of external financing. Against the general tendency of profitability deterioration of state-owned stevedoring companies and the decrease of their marketshare of port services vs the increase of privately-owned stevedoring companies, the importance of competitiveness strengthening is increasing namely through the availability of sufficient fixed assets in the form of portal cranes and a port fleet. The tendencies of the indicator "capital investments" for the state stevedoring companies of Ukraine has been determined. The analysis has demonstrated the existence of a stable trend of a capital investments decrease of almost all companies, which is very typical for most of the analyzed companies and is associated with the lack of: investment activity, executing capital investments and expanding production capacities. In addition to the above, all capital investments are financed with own assets, without using alternative methods of financing, such as funds from the state and local budgets, national and foreign bank loans. The most actively implemented type of the capital investments is modernization, modification (restructuring, additional equipment, reconstruction) of existing fixed assets. The least popular types are capital construction and major repairs. It is proposed to determine the relationship between the tendencies of capital investments in fixed assets and the increase in investment activity by the application of the ratio of the average annual growth rates of capital investments in fixed assets divided by the indicator of their efficiency (profitability of fixed assets), calculated as the ratio of net profit to the average annual cost of fixed assets. It is recommended to use factor analysis using classical methods of deterministic analysis, as well as simulation modelling, for more detailed analysis of capital investments in fixed assets.

Indicating restaurant firms’ financial constraints: a new composite index

2019 ◽  
Vol 31 (4) ◽  
pp. 2014-2031
Author(s):  
Sung Gyun Mun ◽  
SooCheong (Shawn) Jang
Keyword(s):  
Fixed Effects ◽  
Financial Constraints ◽  
Composite Index ◽  
Cash Flows ◽  
Percentage Change ◽  
Capital Investments ◽  
Financial Constraint ◽  
Content Type ◽  
Fixed Assets ◽  
Restaurant Firms

Purpose The purpose of this study is to develop an index for financial constraints, specifically for restaurant firms, and to further validate the developed financial constraint index. Design/methodology/approach This study used logistic regression with a composite criterion based on the dividend payout ratio, KZ index and Cleary index to estimate restaurant firms’ financial constraints. Then, a fixed-effects regression was used to verify the validity of the measurement of restaurant firms’ financial constraints. Findings A restaurant firm’s operating profit, financial leverage, asset tangibility, sale of fixed assets and percentage change in number of employees are critical indicators for identifying financial constraints. The results indicated that in cases with positive operating cash flows, the effect of operating cash flow on capital investments continuously decreased as restaurant firms’ financial constraints increased. Originality/value This study is unique in that the specific financial and operational characteristics of restaurant firms were included in the model to determine financial constraint indicators, such as sale of fixed assets and percentage change in number of employees.

scholarly journals The imbalance of investment activities

2018 ◽  
Vol 212 ◽  
pp. 08022
Author(s):  
Svetlana Lobova ◽  
Aleksei Bogoviz ◽  
Julia Ragulina
Keyword(s):  
Economic Growth ◽  
Economic System ◽  
Effective Interaction ◽  
Federal Budget ◽  
The State ◽  
Economic Sectors ◽  
Investment Activity ◽  
Fixed Assets ◽  
Financial Investments

The state of the economic system is characterized by a group of economic indicators that are structural ones, reflecting certain aspects of reproduction, including investment. The purpose of this research is to reveal the level of imbalance in the investment activity by the main types of activity, the adjustment of which will promote effective interaction of economic sectors and economic growth. The level of imbalance is defined as the variance in the deviation of sectoral indicators from the average for the economy, which we consider to be optimal. The analysis allowed making the following conclusions: the greatest structural shift is observed in terms of the share of investments in the active part of fixed assets and long-term financial investments; uneven support is provided from the federal budget to different branches; the investment activity is close in characteristics to the average values for the country and varies up to 8.16% in most industries. The imbalance in investment activity is determined not only by the implementation of the state sectoral programs and by investing priority sectors from the budget, but also by the differences in the conditions for its formation.

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