The fixed capital is the material basis of the organization.

In order for an organization to function fully and produce the relevant products or type of services, it must have at its disposal the appropriate material base and its sources.

The material base of the organization, its maincapital - these are the buildings, machinery, equipment, all sorts of structures, machines, which the organization owns and which participate in the production processes, as well as fixed assets estimated in the monetary variant. Naturally, without the availability of the necessary materials and aids, no production can exist.

The concept of the main fund of the organization and its components

Since the fixed capital of an enterprise or organization is related to their stock structure, it is necessary to consider in more detail the issue of fixed assets.

• First of all, these are production assets:transport, equipment and machinery, electrical networks, cars and roads, etc., i.e. everything that is directly or indirectly involved in the production and sale of intermediate and final products. Naturally, all this wears out over time and as it is used, money is needed to maintain it in the right shape or replace it with new ones. The cost of updating is included in the cost of finished products, and replenishment occurs through capital investments.
• Secondly, these are the so-called basicnon-production funds: residential buildings, buildings for social and cultural organizations (kindergartens, schools, houses of culture, art, health), etc. They are not directly involved in production processes, but serve them. Their restoration and reproduction come from the national incomes of the state, and to a lesser extent at the expense of private individuals.
• Third, these are revolving funds and appeal funds.

Each stock species has its own rather complicatedstructure and many components. One has only to say that production fixed assets are divided into active and passive. The first are involved in the most important production processes, they are judged on the efficiency and viability of the enterprise. The second is designed to ensure the full functioning of the assets.

Estimation of fixed capital

So, fixed capital is an expression ofproduction assets of the enterprise in cash equivalent. It is necessary to calculate in specific amounts the degree of wear and tear of elements of fixed assets and the allocation of appropriate funds for the restoration of the production material base. Since fixed assets are designed for long-term operation, and the conditions for reproduction and restoration change quickly enough, the valuation of fixed capital is carried out using several methods: balance sheet valuation or initial, restorative, liquid, residual, average annual. Consider briefly what are some of them.

При балансовой оценке основной капитал – это те the money that went to the initial purchase of fixed assets. This includes the cost of transport during deliveries, installation, commissioning, etc. Prices are based on those that were in effect at the time the facility was constructed.

In case of a renewal assessment, the fixed capital isthis is the cost of fixed assets today and accounting for the distortion of the price factor due to inflation and other socio-economic processes. To calculate the replacement cost, apply:

a) method of indexation of book value;

b) the method of recalculation directly of the book value in relation to those prices that were formed at the beginning of January of the next calendar year.

Residual value - this is the difference in prices that occurs between the primary value and depreciation of fixed assets, expressed in money. The remaining methods also have their specific meaning.

Forms of fixed capital

The main capital of an organization at different stages of its existence may have different forms of expression:

• investing i investment in real existing assets: purchase of equipment, construction of buildings, etc .;
• direct production and depreciation of equipment, its physical and moral wear and tear;
• revenue or reimbursement - at their expense there is a new purchase of means of production.

In addition, the components of fixed capitalThe following are considered: fixed assets, long-term investments to increase long-term assets, investments in securities, as well as assets that are not tangible — these are intellectual property products, the organization’s reputation, organizational financial spending, etc.

The calculation and assessment of the fixed capital of the organization is carried out using special formulas.