The main means are material andintangible assets that are used in the production of goods and services, while remaining in its original form. The enterprise's fixed assets include various buildings and facilities, warehouses, roads, devices that transmit various types of energy, vehicles, equipment for the production of goods or services, tools, green spaces.
The main features of fixed assets are:
1. The object is intended for the production of products or services.
2. The facility participates in the creation of goods or services for more than 12 months.
3. The object is not intended for resale.
4. The object should bring profit to the enterprise.
Fixed assets in terms of managementaccounting are divided into production and non-production. Analysis of fixed assets of the enterprise, as a rule, applies to those used in the production of products, that is, production. Nonproductive are those that do not participate in the production cycle of manufacturing products, however, improve the state of the social infrastructure of the enterprise.
With a certain periodicity, the terms of whichare established by management or owners, the analysis of the fixed assets of the enterprise is carried out. This analysis is intended for senior management of the company or enterprise, as well as for middle managers. It helps to understand the extent to which existing production is provided with resources to produce the necessary volumes of production, how long the fixed assets are used, to what extent they are involved in production, and what part of them requires replacement because of technical and moral depreciation. In order to find out how much the enterprise is provided with fixed assets, the indicator is used, such as the capital-investment ratio. The indicator of capital productivity helps to understand how great the return on the use of fixed assets used in production.
Analysis of fixed assets begins withstudying the indicators of the availability of fixed assets, their movement and studying the structure of funds and its changes. After the full picture on availability and structure is clarified, proceed with the next stage of analysis. The analysis of the movement of fixed assets of the enterprise serves to ascertain which fixed assets continue to participate in the production cycle, which are withdrawn from service, and which are to be withdrawn. Also, this analysis helps to solve financial issues about what financial costs are required for the company to purchase new funds or complete re-equipment in order to improve product quality and technological cycle.
All these indicators are calculated by the economicsubdivision of the enterprise. The department's analysis of the company's fixed assets helps management to make decisions such as the need to replace equipment, expand or reduce production volumes, use efficiency of the enterprise, profitability of the enterprise as a whole and profitability of products, increase or decrease jobs, the need to re-equip production facilities, or their complete replacement with new equipment for more efficient operation of the enterprise.
